a typical shoot layout.
Transcription
a typical shoot layout.
NIAGARA HOT TUB PREMIUM POOLS AND SPAS TROPICAL POOL & SPA LCL SPAS & BILLIARDS DEEP BLUE POOL & SPA SEASONAL WORLD THE POOL DOCTOR OF RHODE ISLAND POOLS AND SPAS UNLIMITED ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN WE CALL THEM RETAIL STARS, BUT TO THEM IT’S THE CUSTOMERS WHO SHINE THROUGH. THESE RETAILERS HAVE TAKEN CUSTOMER SERVICE CLICHÉS AND REVAMPED THEM TO FIT THEIR STORES AND THEIR CLIENTELE. HOTSPRING SPAS OF MUSIC CITY ADVENTURE HOT TUBS & POOLS ALL ABOUT SPAS & LEISURE LIVING INTERNATIONAL HOT TUB CO. SPASCAPES CEDAR WORKS SPAS BLACK PINE SPAS & BILLIARDS 40 | SpaRetailer July/August 2011 SPARETAILER.COM | 41 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. PREMIUM POOLS AND SPAS NIAGARA HOT TUB St. Catharines, Ontario NIAGARAHOTTUBS.COM A Culture of Service Debbie Goch, Mike Goch, Zirka Cupolo and Rachelle Kroeker NIAGARA HOT TUB OWNERS Mike and Debbie Goch BRANDS CARRIED Hot Tubs: Master Spas Swim Spas: Michael Phelps Signature Swim Spas by Master Spas Chemicals: EcoOne, SpaLife, AquaBrand, Lawresons Accessories: The Covana, Leisure Concepts Saunas: Sauna Tec, Finnleo 42 | SpaRetailer July/August 2011 MIKE GOCH BEGAN WORKING at his friend’s hot tub store to fill some free time. When he and his wife, Debbie, saw the need for a hot tub retailer in St. Catharines, they decided to give ownership a shot. “I’m not one to take chances,” says Debbie Goch. “But we did it and we’ve never looked back.” Mike has continued with his job, but Debbie quit her banking job to run the store full time and, since it opened in 2000, it has thrived. Her banking background gave her a heart for customer service that carried over to the hot tub business. “We knew we only wanted to have one store,” Goch says. “So if we were going to do it we were going to treat our customers well, take very good care of them and do it right without getting too big and not be able to give it that personal touch.” Even though they wanted to keep things small, they still grew, moving to several larger units over the years. In fact, they are expanding by combining the unit they are in with the one next door. Coming off their two best years yet, Goch says there isn’t one thing she can pinpoint that prompted the success, except for the entire staff’s willingness to go above and beyond for their customers. “We don’t have a high staff turnover,” she says. “I think customers appreciate the knowledge and the experience that they are getting when they come into our store.” Goch says customers often will come in and ask for her by name, only to realize the employee standing in front of them is just as knowledgeable as she, the owner. “[Customers] know that I breathe and sleep this business,” Goch says. “So my heart and soul is going into it. That’s why they are going to want to talk to the owner, but within a couple of minutes they know that they are getting the same customer service and experience they were getting with me [from another employee].” Referrals are Niagara Hot Tub’s greatest form of advertising, but Goch has found another advertising source that has been successful. “Every year we put together a flier that offers a preferred discount to employees from big companies in the area, like the fire department, police department, the local casino, GM,” Goch says, adding that she is particularly proud Niagara Hot Tub has grown to the point that they are able to give back to the community. Not having worked in the hot tub industry before, Goch had to start from scratch when they opened the store, but she learned as much as she could and is still studying. “I love to read every article I can gather,” she says. “You always have to be up on your game because there are all these things that are going to be changing in the industry.” Quispamsis, New Brunswick PREMIUMPOOLSANDSPAS.CA KELLY HARE BEGAN helping out her husband, Tim Hickey, when he started a stamp-concrete business. As that business grew, he began building pools. And as he built more pools, more customers began asking about hot tubs. “We started selling Rotospa from our home,” Hare says. “And then it grew from that to taking on Arctic Spa and opening a store.” The store is only two years old, but referrals are already its No. 1 source of leads. “We have spent a fair chunk of change on advertising, but I don’t really find any one works better than another,” Hare says. “But the one that works the best for us is word of mouth. Then they know what to expect when they come in the door, and they’re here because they want to be here — because someone sent them. Then the relationship with them is much better right from the beginning.” Hare says that the relationships they build with their customers is likely the reason its customers tell everybody to come there, “as opposed to the place up the street.” “We really try to get to know our customers,” Hare says. “I know their dogs’ names, their kids’ names, what kind of hot tub they have, how often they use it and how much they like it.” As the company grows, Hare hopes to keep things simple so they can continue to provide that PREMIUM POOLS AND SPAS one-on-one attention. OWNERS “We like having few Kelly Hare and Tim employees and one crew to Hickey send out to put pools in,” she says. “We like to have BRANDS CARRIED Hot Tubs: control of every crew and Arctic Spas, Rotospa, have my husband on each Bullfrog Spas job; that’s something we’ll Swim Spas: Arctic Spas probably always do.” Chemicals: Dazzle, Arctic Pure SPARETAILER.COM | 43 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. TROPICAL POOL & SPA Photos by Focal Point Studios Prince George, British Columbia TROPICALPOOL.CA Outclassing Geographic Hurdles KAREN AND DAVE DENNISON had been retired for two years when they started to get the business itch again. The couple previously owned and operated several other businesses, and as their children began to graduate and leave home, they wanted to try their hand at something new: selling Beachcomber Hot Tubs. So in 1997, they purchased Tropical Pool & Spa, which had been serving Prince George and the surrounding areas for 20 years. Ten years prior to buying the business, Dave had bought a Beachcomber hot tub while Karen was away on a business trip. The $5,000 purchase didn’t make much sense to Karen at first, but it grew on her. Dave Dennison, Derek Devlin, Deanna Devlin, “After I got in and saw how my family enjoyed it, I didn’t begrudge Verdine Mojolsness it at all,” Karen Dennison says. “So when this [business] came up, we knew that it was a quality product and we knew that we totally had enjoyed ours, so it would be a fun business.” TROPICAL POOL & Within five years of purchasing Tropical Pool & Spa, the SPA Dennisons had outgrown the location and inventory space. SATELLITE STORES “The building we were in really wasn’t designed well for a hot Chetwynd, BC tub store,” Karen says. The hot tubs ended up being stored in the Quesnel, BC Vanderhoof, BC building’s basement as well as in the yard at their home. “You’d get Burns Lake, BC ready to deliver a hot tub and then you wouldn’t know whether it Ft. St. James, BC was in [the store] basement or at your house because everything was Mackenie, BC so jammed.” Houston, BC Smither, BC So, in 2002 they purchased a new building and brought on a partner, Verdine Mojolsness, who brought expertise to their service OWNERS department. Karen says people might think they are over-inventoried, Dave Dennison; but for the volume the store does and its remote location, she’s glad Deanna and Derek they have the space to keep as much as they do on hand. Devlin; Verdine Mojolsness “Prince George is a really tough market because we are 500 miles from anything,” Dennison says. “We are such a long distance inland BRANDS CARRIED that shipping is really expensive. So there is no point in shipping one Hot Tubs: of anything up here; it might as well be a truckload.” Beachcomber Hot Tubs Chemicals: But being remote doesn’t just impact the freight costs for the Beachcomber Care Free store, it was also affecting customers who sometimes came from more Gazebos: than 150 miles away to buy a hot tub. So they found an innovative The Covana, Visscher solution. Specialty Products Other Products: “We felt really strongly that there was no point in selling hot tubs to In-ground Swimming people so far away if they couldn’t have products to keep them properly,” Pools, Billiards, Dennison says. So the company set up a network of eight satellite stores Saunas, Outdoor to sell after-market products like chemicals to its customers. Furniture, BBQs (Continued on page 60) 44 | SpaRetailer July/August 2011 LCL SPAS & BILLIARDS Winnipeg, Manitoba WINNIPEGHOTTUBSPAS.CA WHEN JAY BRECKMAN, president of LCL Spas & Billiards, finished univer- sity, he joined his parents selling Softub spas. “We grew it, took on larger lines and decided to go into a larger marketplace, Winnipeg,” he explains. Now LCL, whose motto is ‘Trusted, preferred, always referred,’ is one of the top dealers for Coast Spas, winning the International Service award from the company nine times. “We’re proud of that,” he says. “It’s something that’s based on measurable results from the dealer areas, and we certainly hang our hat on that one. It gives our customers a lot of confidence in doing business with us.” But it’s not awards that keep the customers coming back (more than 40 percent of its business comes from referrals) — it’s the relationships that LCL works hard to establish with everyone who walks through the door. “I think that [the store’s longevity] has to do LAKE COUNTRY with a loyal customer base,” Breckman says. “I LEISURE think it has to do with carrying a quality product OWNERS that we believe in and giving good customer service.” Jay, Trevor and Eric Breckman LCL has success with a combination of home shows and its own events throughout the year. Another BRANDS CARRIED program that helps generate cash flow year-round is its Hot Tubs: Coast Spas, Softub, hot tub rentals, which serves a dual purpose. Northwind, Tublicious “It’s also a great way to do some charity work,” Swim Spas: Breckman says. “We often will give prizes to different Coast Spas charities that they can auction off to generate Chemicals: Gardex revenue, so it helps to give back to the community.” Accessories: Breckman runs the business with his two brothers, Cover Valet, The Eric, the sales manager, and Trevor, who manages Covana, Leisure the service department. Concepts Saunas: “We’re laid back when customers come in,” Saunatec Breckman says. “We like to have a warm, friendly Other Products: atmosphere, which people seem to respond to. Connelly Billiards, Most of our staff have been here a very long time, Bull BBQ so it’s one big family.” SPARETAILER.COM | 45 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. DEEP BLUE POOL & SPA Batavia, New York DEEPBLUEPOOL.NET SEASONAL WORLD New Store, New Challenges Clarksburg, New Jersey SEASONALWORLD.COM IT’S SAFE TO SAY that almost every pool builder builds spas or sells portable hot tubs. And with swimming pools offering bigger profits, it’s easy for spas to be forgotten. That’s what was happening to Seasonal World in Clarksburg, N.J., until two years ago when the company decided it was time for a change. “We sat down and said, ‘If we are going to do this, let’s make a conscious effort on it,’” says Anthony Schiavone, senior vice president of operations at Seasonal World. “So we went out and hired the right sales people, a sales manager and [started to] build [spa sales] with a good brand as well. We incorporated a lot of proven tactics that work in other areas of the business.” Schiavone’s father, Tony Schiavone, founded Seasonal World in 1980 and continues to run the business. Along with Anthony, Tony’s sons Christopher and Mark, as well as his wife, Bea, work in the business. Besides selling pools and spas, Seasonal World also converts its showroom into a Halloween and Christmas superstore. Schiavone says revamping the spa department meant a more focused approach on customers. SEASONAL WORLD OWNERS “I think we really try to Tony and Anthony understand the buyer,” he Schiavone says. “Try to educate them on the process as well as BRANDS CARRIED Hot Tubs: offer design consultations Dimension One Spas, with the spa. We offer free Coleman Hot Tubs home consultations on Swim Spas: spas trying to build that D1 Aquatic Fitness complete spa-scape. So, we Systems Accessories: made a real push to streamLeisure Concepts, line our processes, makDimension One Spas ing sure that we are truly Chemicals: understanding the client’s Swimming Pools, Patio Furniture, needs and not just trying Outdoor Kitchens, to find something in their Fences, Glass price point.” Enclosures (Continued on page 60) 46 | SpaRetailer July/August 2011 “ANYBODY Brian Bater, Dominick Camelio Photos by Jeff Palm DEEP BLUE POOL AND SPA OWNERS Brian Bater Dominick Camelio LOCATIONS Batavia, NY Henrietta, NY BRANDS CARRIED Hot Tubs: PDC Spas, Dynasty Spas, Coast Spas, Dream Maker Spas Swim Spas: PDC Spas, Dynasty Spas, Coast Spas Chemicals: Baquacil, BioGuard, Poolife Accessories: The Covana, Leisure Concepts WHO HAS EVER been in the pool or spa business, once it’s in your blood you are done,” says Brian Bater, co-owner of Deep Blue Pool & Spa. “If it is something that you enjoy doing, you keep getting sucked back into it.” Bater got his start in the industry in high school and continued through college. After college he got a job at Kodak, but simultaneously started a pool service company with his father. It grew and well, you know the rest. This December, Deep Blue Pool & Spa opened a second location in Henrietta, N.Y., outside Rochester. “Things have been going very well for us, so we are fortunate,” says Ed Wilkosz, operations manager. Wilkosz got his start in the industry at the same pool store that Bater did. “The recession hasn’t really been something that we’ve seen impact us. We’d been looking to expand to the Rochester market at some point, and a great location popped up with a lease that was too good to pass up.” The company already did service work in the area, so it had a presence on which to build. The store is starting to pick up steam, and they say right now the toughest thing is getting it staffed properly. “Obviously it doubled our workforce, so it spread core members kind of thin,” Wilkosz says. For the time being, they are “cherry picking” the jobs they are doing. “We are not just taking anything and everything now; it’s the more qualified jobs, the ones that really make us money.” Hiring has become difficult because there are so many people looking for a job, and as Wilkosz has realized, many of them are overqualified. “I’m sitting here right now with a pile of applications and resumés in front of me trying to do a second round of hiring so that we can get some more people,” Wilkosz says. “We recently brought on someone to head up sales and marketing. With two stores now, the marketing became that much more crucial. It was unbelievable the response we got. People who were 20- and 30-year vets in the marketing industry all trying to take a job that essentially we were trying to fill with someone fresh out of college. It is almost harder to interview people like that because they are more experienced than I am.” Fortunately, they found a person who was a good fit. When they looking are at a potential new employee, Wilkosz says what’s important to them is finding someone who has the right people skills — not necessarily pool and spa skills. “I’d rather have you not be the most knowledgeable pool person but have the ability to make good friends, because customers will see you through that,” he says. “They’ll let you stumble and stutter over trying to find the right chemical for them as long as they trust what you are ultimately going to give them. We’ve been fortunate to be able to have those kinds of people working for us, and it has got us through this far.” (Continued on page 61) SPARETAILER.COM | 47 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. THE POOL DOCTOR OF RHODE ISLAND Coventry, Rhode Island SPLASHTIME.COM A Fondness for Retail and Customers THE POOL DOCTOR OF RHODE ISLAND OWNERS Debbi and Ron Leclerc BRANDS CARRIED Hot Tubs: Dimension One Spas Chemicals: BioGuard Accessories: InSPArations, Spazazz, A&B Accessories, Brite Ideas, Texas Rec Pools: Pacific Graphex Other Products: Grills, Smokers, BBQ Accessories, Outdoor Yard Art, Toys, Games 48 | SpaRetailer July/August 2011 POOLS AND SPAS UNLIMITED Milford, Delaware SWIMDELMARVA.COM in the pool and spa industry their entire lives, but not many can boast 36 years of doing nothing else, at least not at the age of 51. Mark Henderson began servicing pools when he was 15 and hasn’t looked back. IT’S NOT VERY OFTEN that you hear someone say they love retail, but Debbi Leclerc, Instead of heading to college after high school co-owner and vice president of The Pool Doctor of Rhode Island, loves retail. In he chose to start his own business building fact, a lot of the backstory of The Pool Doctor and the Leclercs involves love. above-ground pools. He spent time in Florida Ron Leclerc worked for a large pool manufacturer and, at the behest of his working for a hot tub manufacturer, managing boss, would help customers with pool openings and closings. He eventually a hot tub store, building pools and learning started a service company on the side, which is what he was doing when he met the ropes of being a hot tub technician. By the Debbi in 1989. In order to spend time with Ron, Debbi quickly realized she had time he and his wife started Henderson Service better learn a thing or two about pools. in Delaware out of their basement in 1991, “The next thing you know, he and I were working as a team opening and Henderson already had 15 years of industry closing pools and I had my own weekly maintenance routes,” Debbi Leclerc says. experience under his belt. As it so often has happened in this industry, the basement service company grew Henderson Service subcontracted pools and into a thriving pool building company and retail store. spas in Delaware, but Henderson realized there “And I fell in love with retail,” Debbi says. “I just knew it was my niche.” was a need for him to start his own store. Two of the biggest milestones, and scariest moments for Debbi, were when “My customers would always say, ‘Mark, the time came for her to quit her steady health-care job to start working at the why don’t you start your own store?’” store full time, and when they decided to build their own store. The new building Henderson says. “So after years of busting my provided her the opportunity to design it to her liking, something for which she’d rear end for everybody, I said, ‘You know what? been preparing. They don’t treat people right. It’s embarrassing “In the years that we had dreamed of owning a new building, when Ron and to go behind these other companies and hear I would travel, if I saw someone’s pool store that I thought was attractive, we’d go how they lie to people, and then I get the brunt in and see if we could come up with some ideas,” she says. of it. It is not right.’ So we startThe result was 7,000 square feet of retail space that allowed Debbi to ed our own store in 2002.” let her imagination run wild. From the cobalt-blue walls that imitate the POOLS AND SPAS UNLIMITED Henderson immediately antique blue glass she collects, to the neon waves on the wall accidentally OWNER added hot tubs to the store’s inspired by a favorite sushi restaurant, to the artwork from an artist they Mark Henderson offerings bringing on Hot Spring found at a favorite vacation spot, everything in the store is uniquely Spas, which he calls “the Maytag Leclerc’s and Pool Doctor’s. BRANDS CARRIED Hot Tubs: of hot tubs.” He recently added “I love it when customers ask me, ‘Are you a franchise?’ That means Bullfrog Spas, Hot Bullfrog Spas as well. we’ve done a good job — we’ve branded ourselves.” Spring Spas “[Bullfrog’s] got a whole new While a beautiful store will only go so far to bring in customers, Debbi Chemicals: EZ Spa, avenue of sales and the ability for says they’re fortunate to have so many profit avenues — each department Freshwater Cleanser, people to grow with their tub,” helps generate leads and revenue for the other departments. Spa Pure Accessories: Leisure Henderson says. “I thought that “Every single one of our divisions helps feed the others in one way, Concepts was a real leverage point for my shape or form,” she says. “It’s a combination of us being such a full-service Other Products: retail store.” company, having so many years of experience, looking as professional as we Pacific Pools, Viking Henderson says he is deterdo, conducting ourselves in a professional manner with customers, seeing Pools, Doughboy mined to thrive in this economic the results that they are happy with — I think that is why customers keep Pools, Dolphin Pools, Blue Hawaiian (Continued on page 61) coming back.” (Continued on page 61) MANY HAVE WORKED SPARETAILER.COM | 49 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. MASTER SPAS OF WESTERN MICHIGAN Grand Rapids, Michigan MASTERSPASGR.COM A Direct Line to Customers MARK “MARKETING” NELSON, owner of Master Spas of Western Michigan, inadvertently began his career in hot tubs while he was researching buying a hot tub for his mother as a Mother’s Day present. He spent so much time in a local hot tub showroom, that one busy Saturday the owner asked if he wouldn’t mind helping out some customers. “I ended up selling three spas for him, so he gave me a discount on my spa,” Nelson says. He started working for the store part time and eventually left his job setting up new stores for Meijers supermarket chain, buying out the existing owner in 1986 and starting off on his own. Nelson has a strong background in business and sales, which gave him a leg up at the time because, he says, the industry was still in its infancy, and not many had the sales acumen you see today. He got bored with his single hot tub store, so he sold it in 1988 and went around the country as part of different manufacturers’ sales show teams. Then in 1997 he opened up a hot tub superstore in Grand Rapids. “I’m a marketing guy,” Nelson says. “I love sales, but running your own business and having your name out there, the best thing I learned to do was to become a good businessman. That means taking care of the customer, and I think that is [why we’ve been] in the industry for a long time.” Nelson says they hold to the mantra that the customer is always right, adding that “…even when they are wrong, they are right. Not that we don’t have problems — we have problems every day — but we stop it at our service end. So by policing that and not allowing things to get out of control, it really makes it a fun place to come work.” MASTER SPAS OF “I tell everybody, ‘For 25 years I stopped working; I just started to enjoy life,’ WESTERN MICHIGAN and that is a good attitude to have,” Nelson says. “Not that this is not hard to OWNER stay on top, but it’s a fun business. After you look at all the ups and downs of the Mark Nelson last five years, we are not the only ones hurting — a lot of other industries are, BRANDS CARRIED but this is still a fun business and a lot of people lose track of that.” Hot Tubs: One new thing that has been fun for Nelson was the introduction of the Master Spas, Legacy Michael Phelps line of swim spas from Master Spas. Even before Phelps put his Whirlpool Swim Spas: name behind the product, Nelson had committed to selling swim spas, halting Michael Phelps the pool side of his business to focus just on swim spas. Signature Swim Spas “You can use a pool three months a year, but you can use a swim spa 12 by Master Spas months a year,” he says. “I can [install] four swim spas in a week, but it takes a Accessories: whole staff to do two pools in two weeks. So I made that decision to go strictly A&B Accessories, Leisure Concepts to the swim spas and made that commitment to the factory.” Chemicals: Nelson says he is up $100,000 on swim spa sales this year and gets one to Robarb, InSPArations, three leads a day from the marketing that Master Spas is doing with the Michael Spazazz Phelps line. Saunas: “Not all of these people are going to jump into a $20,000 to $50,000 Almost Heaven Saunas (Continued on page 62) 50 | SpaRetailer July/August 2011 ARVIDSON POOLS & SPAS Crystal Lake, Illinois ARVIDSONS.COM “IT’S everybody else’s family store,” says Dennis Marunde, president of Arvidsons and grandson of the founder. “The original location has been added on to three or four different times, and it’s probably about 10 times larger than it was when it started. When I joined the company, it was a good time for all those changes to start to happen and we started by opening another location. After the second store was well established and a capable team was in place, we bought another business for a third location, and it just sort of snowballed.” Marunde never anticipated joining the family business, but after he got his business degree, he found himself helping out, taking on a bigger role than he had expected. He took three years off to get his MBA and travel and once again found himself back at Arvidsons. “I came to realize that my dad and my uncle were really good at building a customer base, getting jobs done, selling themselves and doing things with integrity,” Marunde says. “But they didn’t necessarily excel in the areas of business administration and finance needed to lead forever a growing business.” Marunde says he had always wanted to have a job where he could “make a difference,” but he never thought it would be in the pool and spa industry that surrounded him as a child. But as he started to see the positive impact the store had on the lives of his customers and employees, he knew he was in the right place. “You start to realize you are making ARVIDSON a difference right now, right where you POOLS & SPAS are,” he says. “Then you stop chasing LOCATIONS rainbows and you start realizing you are Crystal Lake, Palatine, good right here at what you are doing.” St. Charles After 53 years in business, the OWNERS company’s solid reputation and respect Dennis and Doug within the community has helped them Marunde; Dan in good times and bad. Arvidson “One of the things that we have BRANDS CARRIED identified as our strategic advantage is Hot Tubs: our PEAK program,” Marunde says. Hot Springs Spas “It stands for the four key identifiers Chemicals: BioGuard, Arch of our strategic advantages: Product, Chemicals Execution, Attitude and Knowledge.” Accessories: (Continued on page 62) Zodiac, Pentair PROBABLY LIKE SPARETAILER.COM | 51 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. ADVENTURE HOT TUBS & POOLS Sarasota, Florida ADVENTUREHOTTUBS.NET Selling the Benefits, Promoting Well-Being HOTSPRING SPAS OF MUSIC CITY Lebanon, Tennessee HSSOFMUSICCITY.COM IT’S NOT OFTEN you hear someone compare their business strategy to battle, but retired lieutenant colonel and 29-year Army veteran Kevin Croteau, co-owner of HotSpring Spas of Music City, isn’t your average hot tub retailer. Croteau joined his brother Dennis’ hot tub business when he left the Army. Dennis Croteau has worked in the hot tub industry since 1992 and started Music City in 2003. “The heart and soul of the store is my brother Dennis,” Kevin Croteau says. “He’s the technician, but he is a great sales person because he knows the hot tub inside and out.” Croteau’s talents complement his brother’s; Dennis knows hot tubs and knows the industry, while Kevin is great with implementing systems. “Putting systems in place would probably be the biggest accomplishment that I have had since I joined my brother,” Kevin Croteau says. He says that installing a point-of-sale system was pivotal in moving the business forward. “It allowed us to manage inventory and project where we were going to be, which has helped us immensely.” HOTSPRING SPAS Kevin Croteau says they OF MUSIC CITY OWNERS are able to do more things Kevin and Dennis because of these systems. “I Croteau call it a battle rhythm. In war, there is a rhythm to the BRANDS CARRIED Hot Tubs: battlefield and if you can get Hot Spring Spas inside your enemies’ decisionChemicals: making cycle, you can defeat Spa Guard, them on the battlefield. The SilkBalance Accessories: same thing applies here in Hot Spring Spas, the civilian sector.” Leisure Concepts Something that has Saunas: helped them make wise Saunatec (Continued on page 62) 52 | SpaRetailer July/August 2011 Ed and Margaret Bell Photos by Rod Millington ADVENTURE HOT TUBS & POOLS OWNERS Ed and Margaret Bell BRANDS CARRIED Hot Tubs: Jacuzzi Hot Tubs, Dimension One Spas, Nordic Hot Tubs Swim Spas: D1 Aquatic Fitness Systems, Hydropool swimspas Chemicals: Clear Choice Accessories: Dimension One Spas, Confer Plastics, Other Products: LeClick Teak, Primo Grills, Lampe Berger Pools: Viking Pools, Blue Hawaiian ED BELL’S JOB AS the sales manager at a Harley dealership sounds like fun, but he was going a little stir-crazy, “I’m an outdoorsy type,” he explains. So he started a pool-cleaning business on his days off, and within a few months, quit his job selling motorcycles and started working on pools full time. Eventually he opened a pool store, but got rid of it when he decided to branch out into hot tubs. Now Adventure Hot Tubs & Pools builds pools, performs weekly pool maintenance, repairs and upgrades pool equipment, and sells and services hot tubs. It didn’t take long for Bell to rope his wife, Margaret, into the business as well. “He was doing some paperwork one day, and I was working on my own business and papers were going in every which direction,” Margaret says. So she offered to help with the paperwork. “And, oh boy, that’s what got me started. I kind of feel like a fish on a hook; it keeps reeling me in. Now that I’m working with homeowners, especially with the hot tubs, but with the pools too — that’s rewarding. So I’m hooked.” Ed and Margaret make it a priority to educate their customers about the benefits of hot tubs and how simple they can be to maintain. “We want to make sure they love their hot tub because you hear so many people bad-mouthing hot tubs,” Ed says. “We’re trying to turn that thinking around, at least in our area. So they’re telling their friends how great their hot tub is and how easy it is.” Margaret adds that they focus a lot on the health benefits of using a hot tub as well. In the store, she says, they use the National Swimming Pool Foundation’s booklet Hot Water and Healthy Living with customers, as well as when talking about the business and hot tubbing in their community. Margaret says that despite their attempts at all kinds of advertising, the company’s website is what consistently brings customers through the door. “Eighty percent of the people who come here have already been to our website,” she says. “We get a lot of support from the manufacturers — their website leads people to us. That’s very helpful; we’re grateful for that. The shoppers are savvy and they’re very educated, and they’re doing their research before they start going around to look at the different products.” After a couple challenging years due to the economy, the couple is excited to see things pick up. It took commitment to weather the storm, but with the help of great employees they are ready for better years. “Fortunately when one thing was not working, something else was going on,” Margaret says. She attributes some of their staying power to their diverse line of products and services. But for them, it really all comes back to the education of their customers — and themselves. “I’m always going to classes,” Ed says, “or if the industry is doing something nearby offering new information on a new product, I’m always there.” SPARETAILER.COM | 53 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. ALL ABOUT SPAS & LEISURE LIVING OWNERS John and Linda Hinkle; Deborah and John Bonds ALL ABOUT SPAS & LEISURE LIVING Roswell, New Mexico ALLABOUTSPAS.NET Full Service, Full Commitment BRANDS CARRIED Hot Tubs: Master Spas and MAAX Spas Swim Spas: Michael Phelps Signature Swim Spas by Master Spas Chemicals: Arch Chemicals, SeaKlear Chemicals Accessories: Leisure Concepts, Confer Plastics, Sunstar Spa Covers, The Covana Other Products: Cal Flame, Twin Eagle, Big Green Eggs, Holland, Tempur-Pedic, Connelly, Solara, Meadow Décor, California Outdoor Concepts Photos by Jerry Holm 54 | SpaRetailer July/August 2011 had been in business since 1981, but he had no idea that in 2002, his business would take a completely different turn. That was the year business partner and friend Debi Bonds began looking for a hot tub for her family but couldn’t find the brand she wanted — so she took action. “I sold five spas from a catalog and used the profits to pay for my own hot tub,” Bonds says. “Once we realized there was a demand for quality hot tubs, we decided to put a store in of our own.” All About Spas became a subsidiary of Landmark Development until 2007. Bonds and Hinkle knew that if they wanted to continue selling hot tubs, they had to do it right. So after 26 years, they stopped building homes and devoted their company to hot tubs. “We had just grown to the point where we decided we either had to go forward and get with the program on the spa business or just stagnate where we were,” Hinkle says. “Since we are building contractors, we designed and built this building that we are in right now.” The contracting background helped them design a 10,000 square foot store that fits all their needs: bathrooms connected to the wet test area, which is big enough for two tubs and has a drainage system in case one of the tubs leaks; high ceilings to display gazebos; and space to display a working swim spa. Further, the company’s building skills allow them to offer even more to customers. “We have done a lot of fullservice projects where we go to our customers’ homes and completely redesign the backyard space,” Bonds CONTRACTOR JOHN HINKLE says. “We put a plan together and present it to the customer. They can make changes if they wish, and can do it all at once or a little at a time. Sometimes, we build on what they already have, and sometimes we take everything out and start over. Because John is a licensed contractor, we can do as much or as little of the work as the customer wants.” This approach drives sales on all of its product lines, but in order to capitalize, they need get out of the store. “I think our best sales are at the [customer’s] kitchen table,” Hinkle says. “They feel comfortable in their own environment; they don’t feel threatened and you don’t have other customers coming and going. You give your full attention when you are over at their house. We love to do that.” As if that doesn’t speak highly enough of its dedication to customer service, the company also offers free delivery up to 100 miles away. They’re able to do that, Hinkle says, because of the margins on the high-end products they sell. “When a person buys an $8,000 or $9,000 spa, well, it’s kind of embarrassing to say we want another $300 to deliver it to your door. You’ve got to absorb all that.” “We try very hard to make sure that our customer is happy,” Bonds adds. “Not just because it is the right thing to do, but also it keeps them coming back for additional products.” So they don’t have to worry about competing with big-box stores, they aim to carry unique and high-end products. “One thing I think that has also helped us a lot is that people are staying home more instead of taking vacations,” Bonds says. “So their home needs to be an entertaining place. Even in the worst of it all we weren’t suffering too much, but there again we have a multitude of products.” Another thing that helped them through the last couple of years is a decision Hinkle and Bonds made about their business from the start not to borrow money from their inventory. “There have been times when we are glad we owned our inventory,” Hinkle says, “and we weren’t pressured to sell something just to make a bank payment.” SPARETAILER.COM | 55 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. INTERNATIONAL HOT TUB CO. Denver, Colorado IHTSPAS.COM Aiming for Excellence WHEN RICH HINER AND HIS WIFE, Debbie and Rich Hiner Photos by Joel Fischer INTERNATIONAL HOT TUB CO. LOCATIONS 2 Denver stores Boulder, Littleton OWNERS Rich and Debbie Hiner BRANDS CARRIED Hot Tubs: Hot Spring Spas, Caldera Spas, Nordic Hot Tubs Chemicals: SilkBalance, Advantis Technologies Accessories: Hot Spring Spas, Leisure Concepts Fireplaces, Saunas, Grills: Kozy Heat, Napoleon, Weber, Big Green Egg 56 | SpaRetailer July/August 2011 Debbie, moved to Denver, Hiner took a job selling hot tubs. He assured his wife that he would soon find a “real” job — but that was in 1983. Now the Hiners work side by side at the store, which they purchased in 2005. SPASCAPES “So, I’m still looking for a real job,” Hiner laughs, “but you know I still love Rocklin, California the hot tub business.” As it seems for many in the hot tub industry, once he got SPASCAPESINC.COM in, he never could find a good reason to leave. AFTER A POOR SPA SERVICE EXPERIENCE, Bill Long “[People] seem to somehow gravitate back to the industry even if they leave decided he wanted to try to provide a better for a time,” Hiner says. “It is a great industry. There are, of course, all the health option in his community. But he took it a step benefits that we are able to provide for customers, but really the lifestyle benefits further, not only providing great service, but and what it does for families is just such a great part of what we do and makes it a also accumulating several sales awards along the great industry to be in.” way. How does Long, whose boat business is his Great, but not easy. Hiner says he is constantly trying to find ways to improve real bread and butter, manage to stay on top? his business. “I’m literally personally there at the shows,” “As an owner, I think that you are always trying to figure out what you can do Long says. “We’ve been in every home show you better in every single area,” Hiner says. “Every day I look at everything that we do can get into, state fairs, county fairs, everything. and how can we do it better, how can we perform better, how can we take care of our It’s starting to change now, but that’s kind of customers better. This is so cliché, but we take care of our customers. That is what we what’s done it for us the last three years. I really do. The reality is that during this downturn of the last few years, if we hadn’t taken like that part of it; I enjoy meeting new people. great care of our customers, I’m not sure that we would have survived. They are the But that’s really the secret; I’m just at every ones that have kept us in business; they supported us during that time.” show.” Also helping them during the recession were key relationships with manufacturers. Doing all the events is one of the reasons “The other part of it is being partners with great suppliers in our industry,” Hiner Long says SpaScapes is still around. Another was says. “That is a huge factor for us that the products we sell are so well-backed, buying smart. specifically by Watkins Manufacturing.” Besides the hot tub manufacturer, Hiner “Back in ’08 when everybody was going out says brands like Weber and SilkBalance have also been incredibly supportive. of business in the recession, I was buying spas That support came in handy in 2010, when Hiner made the decision to from the banks, GE and Textron. move one of his stores into a new location. Just terrific deals,” Long says. SPASCAPES “[It was] a scary thing to do at that particular time,” Hiner says. “There was “And we’re one of the last guys OWNER Bill Long a lot of discussion about whether we should be trying something like that in the standing because of that.” economic conditions. But you know, even when the economy is difficult there are Because of his other business, BRANDS CARRIED positive things that you can do and difficult decisions you have to make to keep having the right employees in the Hot Tubs: moving forward. That is what we have tried to do through the bad economy — store when Long can’t be there Jacuzzi Hot Tubs, Marquis Spas, Viking deal with it, but keep moving forward at the same time.” is incredibly important. And he Spas, Dynasty Spas International Hot Tub’s online presence has also been improving. Hiner hired thinks he’s found the best. Swim Spas: a full-time, in-house marketing person to tackle the Internet marketing challenge. “We have two guys that run Dynasty Spas “I am afraid that the Internet will be a never-ending process because it the service department that are Chemicals: continuously changes,” Hiner says. “Every time you think you’ve got one just amazing — I cannot give Spa Essentials, Omni, Leisure Time area figured out, Google changes it.” Since it is not his cup of tea, he had them enough accolades,” Long Accessories: no problem handing it over to someone else. “Most [hot tub retailers] are in says. “I tried for about a yearLeisure Concepts these positions because of our sales background, and I think generally that and-a-half to get somebody to Gazebos: serves us well. But there are other areas of expertise that you need to bring run the service side; that’s the Sequoia Spa Shelters in people smarter than you to run.” (Continued on page 63) SPARETAILER.COM | 57 NIAGARA HOT TUB / TROPICAL POOL & SPA / DEEP BLUE POOL & SPA / THE POOL DOCTOR OF RHODE ISLAND / PREMIUM POOLS AND SPAS / POOLS AND SPAS UNLIMITED / LCL SPAS & BILLIARDS / ARVIDSON POOLS & SPAS MASTER SPAS OF WESTERN MICHIGAN / HOTSPRING SPAS OF MUSIC CITY / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. / SPASCAPES / CEDAR WORKS SPAS / THE POOL DOCTOR OF RHODE ISLAND PREMIUM POOLS AND SPAS / BLACK PINE SPAS & BILLIARDS / SEASONAL WORLD / ADVENTURE HOT TUBS & POOLS / MASTER SPAS OF WESTERN MICHIGAN / ALL ABOUT SPAS & LEISURE LIVING / INTERNATIONAL HOT TUB CO. BLACK PINE SPAS & BILLIARDS Lynnwood, Washington BLACKPINESPAS.COM Entrepreneurial Spirit of Michael Nekahi and his business partner, Khasha Mekanik, goes back to college when a group of business students, with the help of a University of Washington program, started a student travel business, which they sold in 2001. Then Nekahi and Mekanik began working for a new reverse-supplychain management company, which handled returns for big retailers and manufacturers. After that the pair began looking for a local business they could purchase together, and after searching across many industries, they landed on a hot tub store. “We saw an opportunity,” Nekahi says. “We had both had a technology, sales and marketing background, so we kind of stepped into those roles here at the company.” Even though there was a learning curve to get started in the spa business, the varied background and experience from the other companies they’d worked for prepared them well. “Neither of us have ever been employed by anybody but ourselves,” Nekahi says. “So that self-motivating entrepreneurial spirit is what translates into doing finances well, doing your sales well and doing your operations well.” Of course there are specific skills that have contributed to the company’s success. “I think other things that have kept us ahead of the curve is knowing how to market, knowing how to get in front of people,” Nekahi says. “We have a very disciplined sales approach. We have a high closing rate; we don’t typically lose customers. We have great customer retention and we have great customer acquisition. Those two things, hands down, make us very effective.” In a region known for its large and well-respected hot tub retailers, Nekahi says they still have been able to carve out market share, even with their single location, because of all the events they do. Nekahi says they are fortunate to be in an area that has weathered the recession well. “We are very lucky that we have Microsoft, Starbucks, Boeing and Costco based here in Washington. These corporations employ a lot of people and are still doing well in this economy. I think we do things well here at Black Pine, but it’s all relative. We still have a steady flow of buyers in our market.” Another plus for Black Pine Spas is an excellent retailer/manufacturer relationship. Nekahi says a key component of its success has come from sourcing the right product and the right manufacturer. “In 2008, businesses were seeing 30 to 50 percent decreases very quickly, and a lot of companies couldn’t react that fast to it,” he says. “I have to credit Artesian Spas for developing the right products for this economy and making certain options and price points available to accommodate a buyer in this market.” Black Pine’s owners call the hot tub industry fun and rewarding, which makes them want to dig into everyday operations even more. “We work in the business and we try to work on the business,” Nekahi says. “But what I like about that, and I think [Mekanik] may agree, is that it keeps us close to our customers and it keeps us close to our employees. We are very hands-on owners.” Michael Nekahi and Khasha Mekanik with Michael Phelps at the 2010 IPSPE. THE WORKING RELATIONSHIP 58 | SpaRetailer July/August 2011 CEDAR WORKS SPAS Eugene, Oregon CEDARWORKSSPAS.COM BLACK PINE SPAS & BILLIARDS OWNERS Michael Nekahi and Khasha Mekanik BRANDS CARRIED Hot Tubs: Artesian Spas Swim Spas: Michael Phelps Signature Swim Spas by Master Spas Chemicals: Leisure Time, SilkBalance Accessories: The Covana, Cal Gazebos, Leisure Concepts Saunas: Golden Design Other Products: World of Leisure & DLT CEDAR WORKS SPAS started in the late ’70s and specialized in building decks and wooden hot tubs. “We have photo albums that go back to truly cedar worked spas,” laughs Susan O’Con. She and her husband Jeff purchased Cedar Works Spas in 2004. “We bought our spa here back in the early ’90s,” O’Con says. “So we were very familiar with the store and had a good relationship here. But it was a big decision because both of us had been at our jobs for a long time and we really enjoyed what we did.” O’Con says the timing was right for them to start their own business, however, and one of the reasons they made the plunge was their faith in the products they were going to sell. “We very much believe in the hot tub and sauna industry,” O’Con says. “We really believe that they are helpful.” CEDAR WORKS Neither of them had ever owned a SPAS business, much less a hot tub business, OWNERS so they had a lot to learn. However, Jeff and Susan O’Con the business fit each of their particular BRANDS CARRIED skills. Jeff is good with the technical Hot Tubs: and mechanical side of the business, Marquis Spas and Susan is a paperwork and people Swim Spas: Arctic Spas person. Chemicals: The O’Cons made two big Marquis Spas, decisions when they purchased the Seaklear, Leisure Time store: One was to exclusively carry Accessories: Marquis Spas, Leisure Marquis Spas. “They had been in the Concepts store for over 20 years,” O’Con says. Saunas: “They have really great sales and product Finnleo Other Products: courses, so we took advantage of those.” Telescope, Rattana, The next big thing on their list Jackson Grills was updating and improving the retail (Continued on page 63) SPARETAILER.COM | 59 (Tropical Pool & Spa, continued from page 44) “So we wholesale products to those stores. Some of them do water testing for the customers, and for the most part [customers] are able to buy everything they need for their hot tub at their local suppliers.” While it’s not as profitable as it would be to sell the chemicals from their main location, it’s advantageous for their customers. “We would rather our customers have the convenience of being able to get stuff in their town,” Dennison says. With numerous product lines, including building in-ground pools, and such a large territory to cover, how does the store possibly balance it all? Dennison says it’s not easy, but they’ve found systems that work for them. They keep their dedicated service and building crew separate from the sales floor staff, allowing both teams to focus on what they do best. Another advantage is having a close-knit group of employees, including several family members. In fact, all three of the Dennison’s children have worked in the store in some capacity, and their daughter, Deanna, and her husband, Derek Devlin, bought Karen’s shares and are now part-owners. “It’s pretty tough to drag your kids through your business, because it may not necessarily be their dream,” Dennison says. “But when I think about what Deanna has brought to the business, it is a tremendous amount of energy. What really makes me feel proud is the fact that our business has done so well that we can not only afford to feed our families well and do all the things we need to do with our families, but we can also give back to our community.” (Seasonal World, continued from page 46) Another relatively new avenue for the company is its online presence. When asked about their best form of advertising, Schiavone says, “Most recently we’ve had great success with Facebook; we have 1,800 followers now. That has always been good for interesting promotions to help drive traffic into the store. We have a large email database that we keep our customers informed of legitimate offers and updates. Those work well.” Schiavone says it took some testing to figure out the best way to leverage social media to their advantage, but he feels they are on the right track. “We review the nature of the post, the promotions that we are offering, and the conDeep Blue Pool & Spa 60 | SpaRetailer July/August 2011 Tropical Pool & Spa (Pools and Spas Unlimited, continued from page 49) climate by taking on any job, no matter how small, for his customers. “We’re like every other company — we do anything to survive,” Henderson says. “We’ll build porches, room additions, tile, push snow. We scrap and fight every day.” Henderson admits they reacted late to the economic downturn, but once they realized the reality of the situation, they acted swiftly, drastically downsizing. That meant everyone in the company had to take on more. “So there is no more, ‘I’m the spa technician.’ There is no more, ‘Well, I just do pools.’ There is no more of that; everybody has five hats,” Henderson says. “And that really saves the day.” Fortunately, the team at Pools and Spas Unlimited The Pool Doctor of Rhode Island was up for the task. “I would put [my employees] up against anybody in the country,” Henderson says. “I have the best people. They truly love my wife and me, and they really work for us and we work with tent regularly just to make sure that the page is not stagnant and talk- them too. We don’t have our feet up on the desk barking out orders, that brings a certain amount of respect. You’ve got to get out in the ing about nonsense,” he says. “We try to make sure that whatever we trenches with your people; it’s just plain and simple. You don’t leave are offering to the community is varied, makes sense and is relevant. them taking grenades for you all the time. You get out there and take We also try and reward those people who are our longtime followers with various promotions or Facebook-only events like extended hours a few grenades yourself.” And, according to Henderson, solid employees translates into at certain times of the year. One thing we’ve noticed is that we’ve excellent customer service. been able to maintain our ‘like’ count as opposed to it really fluctuat“Our ability to listen to the customer and achieve what they ing. So once we acquire a ‘like’ or fan, we tend to stay in it for quite want may not be perfect every time, but we don’t stop until it is,” some time.” Henderson says. “We just we don’t stop. I know that is the biggest However, like almost every retailer interviewed for Stars over the asset we have.” years, the majority of business still comes from referrals. “Our greatest lead source, our greatest conversion of sales I am seeing, is that first- or second-hand referral. That is really just a matter of taking good care of the people who do refer you and taking care of any new and existing clientele,” Schiavone says. (The Pool Doctor of Rhode Island, continued from page 49) And while pool builds and hot tub sales slowed during the recessions, retail and service remained strong. “Retail didn’t ever feel the recession, not really. Our chemical end never felt it, our (Deep Blue Pool & Spa, continued from page 47) pumps and filters and things that need to be replaced because they Bater agrees, “I’ve got a fantastic core group of people, and need to be replaced, never felt it.” without good people you are done.” Fortunately, everything seems to be on an upswing now. “We Recently the store has collaborated with a local radio station to do are experiencing very positive behavior across the general public, very a promotion. “We are giving [the radio station] a Dream Maker tub positive,” Debbi says. “This is not the first downturn in the economy to give away,” Wilkosz says. “They are making it into a three-weekthat we’ve gone through. Each time you go through a downturn and long promotional giveaway.” The winner of the contest will get the you can emerge you become that much stronger.” tub and Deep Blue Pool & Spa will be plugged as much as possible. Working side by side with her husband and a team of great “We are going to try that out and see where that takes us. It is relaemployees, doing something that she loves, Debbi Leclerc can’t think tively inexpensive in comparison to traditional advertising.” of a downside. “Retail is my passion,” she says. “I love doing what I do. I love the customers, I love my employees; my employees like their jobs. You know some people need to go home from work and they need to turn off work and go into another mode. Work is part of our mode.” SPARETAILER.COM | 61 (Master Spas of Western Michigan, continued from page 50) purchase, but you know what? They are calling my store and we are getting their names and numbers, and we are getting communication with somebody who we wouldn’t have had communication with before,” Nelson says. Nelson stresses how important his relationship with his manufacturer, Master Spas, has been to his store’s overall success. The company supported his decision to downsize to one location when the recession hit and understood his vision for the store during the down years. “I think the 2011 hot tub dealer really needs a relationship with their manufacturer,” he says. While that relationship, support and innovation from the manufacturer has been important, Nelson has had a few innovations of his own, like Tech Direct. Available on the Master Spas of Western Michigan website, Tech Direct allows a customer to send technical questions directly to the service department, which calls the customMaster Spas of Western Michigan er within 24 hours of receiving a query with an answer to their question. Sometimes, however, the call will result in a service visit at the home. Typically customers use this service when Marunde sleep at night when the economy is bad. they are ordering chemicals from the website. “I think the plan is to just go along continuing to try to grow our “So in our way of selling things, we still want to know and touch business at a reasonable, sustainable pace every year — as long as it base with our customers,” Nelson says. He says it has quickly given continues to be fun and fulfilling,” Marunde says. “You know I think them a rapport with new customers, and that even competitors will we’ve been with BioGuard for probably 35 years and we’ve been with sometimes use it if they are stuck on a problem. It has also helped Hot Springs probably close to 20 now. Those relationships were very keep service phone calls to a minimum and ensures the customer is important in helping, in conjunction with our own family values, to directed to the people who can help them the most. “And you’ll be feed the ability to keep growing.” surprised the people who will tell you the things that they need on He continues, “When I look back on where we were when I the PC rather than right in front of you,” he says. started 20 plus years ago and where we are, I realize that along the Maintaining an efficient and profitable service department is way we’ve not only built a stable business with the help of great important, according to Nelson, because that customer service propels suppliers and manufacturers, but we’ve also made close friends who new sales. “The doors are opened because we sell the spas,” he says. are bright and seasoned business people in their own right. I love “The doors stay open because we service them.” the fact that we have developed friends within the industry who I can turn to when we need advice or a supportive sounding board for ideas. The same is true of my accountant, attorney and banker — those are all people who are part of my advisory circle. They are all (Arvidson Pool and Spa, continued from page 51) valuable and important relationships to have and to utilize regularly.” When they hire, industry experience takes a back seat to attitude and trainability, Marunde says. “When we begin a relationship with any employee by basing it (HotSpring Spas of Music City, continued from page 52) on what kind of individual they are, and then forcing ourselves to decisions is their involvement in the Gemini group. (To read about be patient while we bring good people along as they develop their Gemini in depth, see page 22). “Joining Gemini was probably one of skills, eventually, those good people do a good job taking care of good the smartest moves we made,” Croteau says. He initially thought the customers,” Marunde says. “And so our goal is to be the friendly and group was for stores that were much bigger than HotSpring Spas of reliable and trustworthy source.” Music City, but he quickly realized size wasn’t an issue. “We weren’t Carefully watching the numbers, leaving the company as wellthat far behind them when it came to trying to figure it all out.” capitalized as possible and taking advantage of the knowledge, The company has purchased land, and plans are under way to training, product innovations and marketing support programs build a new store, which Croteau says he hopes to be in by year’s end. from top manufacturers has put Arvidsons in a good place, and lets It may not seem like an ideal time to be going into such an expensive 62 | SpaRetailer July/August 2011 problems are handled over the phone.” Picazo-Soto says it’s nice to work with guys who have been in the business for a long time and know their stuff. “They’ve been in it longer than I’ve been alive,” he says about their sales staff. “They’re really knowledgeable.” venture, but Croteau doesn’t see it that way. “When I left the Army, I picked up The Snowball: Warren Buffett and the Business of Life,” Croteau says. In it, Buffett says when people are greedy be fearful; when people are fearful be greedy. “So I chose the latter,” he says. “Because people are fearful right now, we decided to buy this land at a great value, and hopefully get our building built.” Croteau isn’t planning on building a typical hot tub store, either. His vision incorporates elements of what IBM, in collaboration with METRO Group, dubbed “the store of the future.” Using technology, Croteau hopes to make the store as interactive as possible, giving customers the option to work with a salesman or go it alone. The idea came from a discussion he’d had with a member of Gemini. But until everything is up and running, and presumably after as well, the store relies on an old staple: customer service. “Say what you mean,” Croteau says, “and mean what you say.” (SpaScapes, continued from page 57) hardest part. But Cancio [Picazo-Soto] and Jason [Sietz] are just unbelievable; they’re the best in the world. I don’t have to do anything at the store, ever.” Picazo-Soto was building gazebos when Long discovered him. He runs the service department but also tries to help out with other things as much as possible. “This year we started doing a lot more online, trying to get in touch with people,” Picazo-Soto says. “We have our own Facebook setup now. You add us on that and you get a huge discount.” They also can help with any spa question posted to the Facebook page as well. “We have a pretty good customer service basis. We try to work with people over the phone before we send out a technician and most (Cedar Works Spas, continued from page 59) space. “This building has been here since 1980, so it needed a fresh facelift,” O’Con says, “and maybe a female touch. All of those hours and sweat paid off because within probably the first two years the store had doubled its income and we became a prominent competitor in our area.” Of the six employees in their small shop, only one is SpaScapes not related, and another is soon to marry into the family. Employing family can sometimes be stressful, but for Cedar Works Spas, it has brought them closer. “We worked really hard for everybody involved,” O’Con says. “The last few years have been difficult, so we’ve pulled together to keep everything stable and we have been able to do it.” After 30 years of attending local home shows, the store has made a name for itself and has a prime location on the show floor. “We work hard at putting a nice display together,” she says. O’Con says a good display should inspire them and show customers how great their backyard could look, which she says requires more than just displaying a bunch of spas. They arrange and rearrange their booth until it has the right flow, then accessorize the booth to create realistic backyard scenes. They also add some personal, local touches. “We have a local artist who has done outdoor art for us,” O’Con says. “We also have a local iron artist who has made iron pieces that are in our displays and they are beautiful. A lot of times people want to buy our displays.” All the hard work catches the attention of shoppers and also the home show organizers. “The people who run the home shows are looking for vendors who make their home show look good,” O’Con says. “So it has really opened a lot of opportunities for us.” They are often asked to do interviews for the home shows and for products to be used in the home-show advertising. While the O’Cons want their business to continue to grow, they want to keep the family atmosphere they have established. “Neither one of us feels that our real success is going be measured by the sheer size of our company,” O’Con says. “So we both want to continue focusing on our company, making it the best that it can be in efficiency and in organization.” ■ To nominate your store to be one of our 2012 Retail Stars, contact senior editor Megan Kendrick and let her know what makes you special. [email protected] SPARETAILER.COM | 63