Westside Motorsports heats up with hot tub sales

Diversifying product line points to bottom line success

What do hot tubs have to do with powersports? That’s the question Scott Schmidtman, owner of Westside Motorsports, had on his mind when Beachcomber Hot Tubs approached him about adding its product line to his store.

Schmidtman, who has owned the dealership in Spokane, Wash., since 2003, admits he was skeptical about adding such an outside-the-box product, but the more he thought about it, the more sense it made.

“We were open to adding new products coming out of the recession,” Schmidtman said. “As we started talking more, I concluded that it did make good sense [to add hot tubs] to help diversify the store, because we already have a well-established customer base.

“So we thought we probably have all these customers that [a hot tub] would sound appealing to that already come to our store. If they’re waiting to pick up their unit for service, maybe they have more time in the store, looking at things and considering other products. We thought it would be a natural fit to sell the hot tubs.”

And Schmidtman’s thoughts were correct.

“A hot tub is a leisure item, kind of like what powersports can be like. Only a hot tub can be used by the whole family 12 months a year,” Jeff Welters, Beachcomber business development manager, explained further.

Welters said that people who buy hot tubs aren’t all that different from those who buy powersports vehicles.

“[Hot tub customers] are people who are into health, connection, escaping daily stress,” Welters said. “People going into powersports stores to buy dirt bikes, ATVs, motorcycles, snowmobiles are like-minded people.

“You go out and have your fun on the machines during the day, and what’s a better way to come back and massage and heal up that body and continue to connect with family friends and loved ones than in a hot tub?”

Schmidtman is in the process of renovating his showroom to accommodate the new line of hot tubs. While it is necessary to have some showroom space, there isn’t much space required beyond the norm with Beachcomber.

“You don’t have to inventory our product other than the display,” Welters said. “We’re set up with distribution centers and quick-ship delivery, where we can get product to our stores in a matter of days because what you show on your floor is what we stock in our distribution centers.”

So with the extra space for display freeing up, Schmidtman believes Westside Motorsports, which is one of the largest and most diverse powersports dealers in the Pacific Northwest, can become competitive in the hot tub business.

“I think it will resonate with our current customers,” Schmidtman said. “As you look at the demographics of our population, you have all the Baby Boomers that are getting a little older and approaching retirement. So a hot tub may sound even better to that demographic, because you get a little more fatigued and achy after being out on your motorcycle all day.

“As far as bringing in other people into the store, it’s a natural fit. Now we can get people that maybe aren’t interested in motorsports products. As long as they’re shopping for hot tubs, we think we could draw them here to be part of the sales process and be very competitive.”

Beachcomber’s profit margins also strongly resonated with Schmidtman.

“The profit margins are better selling hot tubs than on most of the motorsports products we sell,” Schmidtman said. “There’s been heavy discounting in some of the motorsports products out there. This gives us a chance to sell something where maybe we don’t have to discount so much.”

Welters said Beachcomber offers price points in the low, mid and high ranges, which gives retailers greater flexibility.

In addition to the strong margins, Welters said hot tubs bring in plenty of repeat business.

“As far as retailing goes, you’ve got the hot tub, which sells 12 months a year, but then we add that repeat purchase program with the water care and accessories,” he said. “A hot tub customer comes back into the store every four to six weeks, either to get their water tested or to purchase products.”

Beachcomber offers a line that is, in Welters’ words, 100 percent unique from its competitors, particularly its energy-efficient hybrid model. That uniqueness, in turn, allows retailers to enter the market with something their competition won’t have.

For Schmidtman, adding hot tubs was just another way of diversifying an already diverse store.

“The image of our store has always been that we have a broad selection of products to choose from,” he said. “I try to have the right product mix.”

By adding Beachcomber Hot Tubs, Schmidtman’s mix just got a little more unique and potentially more profitable.