Sales of hot tubs on finance have risen by more than 63 per cent on the same period last year.
Consumer Credit Solutions (CCS) have reported finance approvals were up from £1.4m in May 2014 to £2.2m in May 2015.
Higher sales on finance are an excellent indicator of what is happening in the wider pool and spa market. Consumer confidence has clearly increased over the last 12 months, with homeowners willing to make ‘big ticket’ purchases on luxury goods.
Record sales figures are being experienced by both online and showroom dealers across the UK, with some reporting sales up by 30 per cent. And it’s not just new customers buying their first hot tub, many long-term owners are also trading in and upgrading. Sales have also been fuelled by the fact there are some very competitive finance products available at the moment that are attractive to both dealers and consumers.
Paul Farrell, marketing manager at Jacuzzi Spa and Bath Ltd, said: “Jacuzzi has seen continued double digit growth into 2015, with hot tubs now seen as one of the must have luxuries for the home.
“To quote one of our largest customers, ‘we believe that consumers are now tired of not spending money under the pressures of the recession, and credit offers that flexibility without putting personal savings at risk’.”
Online retailers have experienced a similar rise in sales, with finance contributing to their growth.
Scott Jackson, managing director of The Grizzly Bear Hot Tub Company, said: “We have seen a large and steady increase in our hot tub sales since 2013. Finance has played a part in that. Interest free credit has been a huge draw for customers as it has made hot tubs more affordable to a much wider market. Customer feedback indicates that people are more willing to spread the costs rather than having a large initial outlay.”
Offering finance has become a key ‘soft sell’ marketing tool for dealers. CCS managing partner Andy Wallace believes finance is a valuable sales and marketing tool and it has helped many businesses to significantly increase turnover and grow.
Andy said: “Finance is often associated with purchasing cars, furniture or funding home improvement activities such as double-glazing or kitchens but it is become widely available on many luxury items including hot tubs, spas and pools.”
To read more on this story, please subscribe online.
