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Hot tub dealer plans far ahead to keep supply from running dry
McCOOK, Neb. - A world-wide pandemic has presented challenges to many businesses, especially those in the retail arena. Hot-Tub Brokers in McCook and Grand Island is no exception.
Maintaining inventory is the biggest obstacle according to owner Blaine Budke. “It used to take three or four weeks to get hot tubs in after we ordered,” Blaine said. “We just got a truckload in, and we have ten truckloads on order. There will be one coming in late November or early December, and two in January, followed by about one load a month. But the order we placed two weeks ago, won’t be coming in until August.”
Budke is encouraging buyers to come into the showroom where he can show them pictures of the tubs that they have on order and reserve one that they like. “We had 18 hot tubs come in last Tuesday, and we have two left that are for sale,” Budke said on Monday morning.
Hot Tub Brokers has two locations, one at 210 West 3rd in McCook, and another at 1919 South Locust Street in Grand Island. Each location has a 4,000 square foot showroom, where they usually have 50 tubs in stock. He currently (as of Monday morning) has three new tubs and eight used ones to split between the two locations.
It is especially frustrating for the business because the holiday season usually results in 35 to 40 hot tubs sold in November and December.
He said that increased dealer demand, challenges getting component parts for the tubs, and shipping obstacles created the inventory issues he has been dealing with. “I think it just trickles all the way down the line to the guy making the head pillows. It’s changing the way we do business.”
Budke said that one of the reasons the business has been so successful is that they normally have a large inventory and are able to give customers a variety of product to choose from. The pandemic has changed that, at least for the short term. He said he delivers the pre-sold tubs just as soon as they make it to the showroom and he appreciates that customers have been so patient with them.
Budke is trying to look into his crystal ball and anticipate supply and demand for the upcoming year. He has twenty swimming pools on order that should arrive in February.
The business was recently featured in Spa Retailer magazine in an article titled “The Dealmaker”. The four-page spread described how Budke uses his “car salesman prowess” to promote and build the business. They were recently named Artesian Spa’s 2020 Territory Dealer of the Year.
Hot Tub Brokers will be celebrating their 22nd year in January. Budke told the Gazette that he started selling hot tubs because of his own aches and pains. “I knew there were a lot of people that did stupid stuff like I did when they were younger. It made me feel so much better to use my hot tub, so I could sell that story,” Budke laughed. He went on to explain that hot tub ownership becomes a quality of life issue for many.
Budke has a staff of six, including himself. Jody Stewart is the “brains of the operation” office manager; Blaine’s son, Brett Budke is the certified hot tub technician and Dustin Blackman is another technician. In Grand Island, Nick Smaha is manager and Bobby Arends is the hot tub technician.
They sell Artesian, Passion, and Strong spas. They have financing available for both new and used tubs. The new tubs come with a two-year “bumper-to-bumper” warranty; used tubs have all been field test-checked and have a 30-day warranty. They all come with the cover, chemicals, delivery, and set-up.
In addition to the hot tub business, Budke sells used cars through his Tri State Auto-Plex business. That entity has also been affected by the pandemic. “You can’t even go to the auction anymore, you have to buy used cars online, where you don’t really know what you’re getting.”
While some would be discouraged by the challenges presented, Budke has plans to change and adapt for a changing business environment. He is in the process of building a 45 by 140 foot recreation vehicle storage facility that should house up to eight RV’s.
“We’re going to offer something different than just parking it. You’ll be able to plug your RV in to keep your batteries charged. There will also be water available if you want it.”