The market for high-end hot tubs appears to be warming up as once-cautious customers now are splurging.
This is a much-welcome change of pace compared with the past three or four years when the market was beginning to stabilize. During this period, mid-range spas priced between $6,000 and $8,000 were taking market share from the lower-priced hot tubs.
While modest units still make up a substantial portion of sales volume, today dealers are moving more luxury spas than they were this time last year, suggesting that the market is cycling up.
“We’ve seen a big increase in volume, and a big part of that is the high-end spa,” said Mark Stevens, president of Georgia Spa Company, a Hot Springs dealer serving metro Atlanta.
For Stevens, top-of-the-line tubs priced at $9,000 and higher represent about 30% of sales — a marked improvement over last year. Likewise, swim spas are exceeding projections. Stevens says sales in that category are up 109%.
His customers are in their 40s, dual- or high-income earners, active and they’re demanding premium amenities. They’re not financing, either. This demographic is paying cash or with a credit card, Stevens said.
Other dealers report similar trends. Doug Geibert, general manager at Parnell Pool and Spa in Lumberton, N.C. says customers still largely favor entry-level to mid-range models, which make up about 70% of sales. But he’s seen an uptick over the past 12 months in the top-of-the-line models.
“It’s definitely trending a little more high-end,” Geibert said.
People are willing to pay premium for advanced technology and a more elegant aesthetic. In-demand features include topside controls, sophisticated jetting and Wi-Fi connectivity, among other bells and whistles.
“People want what they want and they’re willing to go a little bit further to get it,” Geibert said.
But he acknowledges that even some of his most affluent customers have their limits. Models in the uppermost tier he sells, which retail for $13,000 to $20,000, haven’t been hot sellers.
Still, Geibert said he’s pleased to see a broader mix of products selling, helping increase sales year over year.
Another encouraging sign: Hot tub owners are looking to upgrade. Sherry Buckman, co-owner of Pride Pools, Spas and Leisure Products, with locations in Savannah and Claxton, Ga., estimates about half of higher-end spas were sold to second-time owners. She’s a Bullfrog Spas dealer. The brand’s premium A Series accounts for about a quarter of sales, up somewhat over last year.
Her customers are looking to upgrade.
“Their existing tubs are about 10 years old,” Buckman said. “It’s time to trade up.”
