A common inventory challenge faced by hot tub retailers is models from previous years occupying valuable showroom space, hindering the display of newer, quicker moving models. A multi-location dealership located in a mid-sized market created a Flash Sale Program, which was designed to combat this problem as well as create a sense of urgency through limited time offers, generating excitement and driving foot traffic into the showroom. The program not only helps with clearing out stagnant inventory but also refreshes the showroom with the latest models, ensuring that the display remains dynamic and inviting. Through the Flash Sale Program, this dealership has effectively managed their inventory, optimized showroom space, and catered to a diverse range of customers, ultimately increasing profitability and customer satisfaction.  

The Program 

Over a decade ago, the dealership implemented a Flash Sale Program that was designed to offer significant discounts on older models or spas with minor blemishes or scratches. The program offers a slightly larger discount than is typical on a spa due to its age or condition. The program runs year-round, with the primary goal being to create a sense of urgency and emphasize that these deals are limited time offers and that once these specific spas are sold, the opportunity to purchase at such a low price is gone. 

Initially, customers were only informed of these discounts through sales personnel, creating a personal touch but sometimes missing the broader awareness needed to drive foot traffic and urgency. Last fall, the dealership took a more proactive approach by placing flash sale signs directly on the discounted spas. This visual cue immediately communicated the value and urgency of the offer to all showroom visitors, enhancing the program’s effectiveness by capturing the attention of potential buyers instantly. The dealership has also experimented with different placements of these discounted spas, sometimes spreading them throughout the showroom and other times grouping them together in the back of the store.  

Ultimately, this program has not only helped clear out old inventory, making room for newer models, but also attracted price-conscious customers looking for high-value deals, ultimately boosting sales and showroom efficiency. 

The Results  

The Flash Sale Program has been a huge success at every dealership’s location. Especially since the addition of flash sale signs last fall, which are displayed on the spa and exhibits the spas regular price and the discount price, immediately communicating to customers that they are looking at the lowest possible price for those specific models, creating a sense of urgency to buy before someone else takes advantage of the deal. Since displaying these signs, the dealership has seen a notable increase of about 10% in the sales of inventoried spas.  

After placing inventoried or flash sale spas throughout their retail locations for a time then switching their layout to gather all flash sale spas in the rear of the store, the dealership discovered that placing the flash sale spas at the back of the store yielded better results than scattering them throughout the showroom. This strategic placement ensures that customers first encounter the newest, full-priced models first, setting a high standard for quality and desirability. By grouping the discounted spas together in one designated area, the dealership has created a focused bargain section that clearly communicates the available deals. Cyndi, the manager of one of the retail locations, explained that she even lays the discounted spas in the back out so that when she approaches them with the customer she can start with the lowest discount and work her way up to the higher discounted items.  

When deciding which spas to include in the Flash Sale Program and determining the appropriate discount, the dealership considers several key factors: the age of the spa, its model, size, and overall condition. Older models that have been in the inventory longer naturally receive higher discounts to encourage quicker sales. The size of the spa is another important factor, with smaller spas sometimes having a slightly higher discount as more space is an attractive feature. Finally, the condition of the spa, including any minor blemishes or scratches, is carefully assessed to ensure that the discount reflects its current state. By evaluating these criteria and discounting accordingly, the dealership can set attractive prices that appeal to customers while efficiently managing their inventory. 

Ultimately, the success of the Flash Sale Program has been so impactful that the dealership has set an ambitious goal for this year: to reduce inventoried spas by 55% using this program, so far they are on track to reach it. By maintaining a strategic balance between promoting high-quality, full-priced models at the front and creating an enticing, well-organized discount section at the back, the dealership has effectively managed to enhance sales and optimize showroom space. 

Solutions  

Implementing a Flash Sale Program in your dealership can be an effective strategy to move older or blemished inventory while still attracting a diverse customer base. When pricing spas for your dealership, it’s crucial not to start with the lowest possible price, this will make discounting spas for the flash sale far easier by giving you some leeway. Instead, price according to the perceived value of the spa, so when a sale price is posted, your business does not lose revenue and clearly communicates to the customer the incredible deal being offered. Bullfrog Spas dealer can find an example Flash Sale Sign here. 

Consider rearranging your showroom so that all discounted items are grouped together, creating a designated area for flash sale items. If your showroom space is limited, arrange your products from highest to lowest price, with M Series and Swim as close as possible to the front entrance and the A and X Series towards the back. Put the flash sale items in their respective areas with sign on each, but make sure they are not the first items customers see when they walk in. 

All dealers should also train their sales teams to promote all products effectively, not just the discounted ones. Ally, an associate at one of the dealership’s locations stated, “Regardless we show the customer every single spa we have, so they can still see all the differences.” While the flash sale caters to price-conscious customers, not everyone falls into this category. Ensuring your staff understands the broader sales strategy will help them guide customers to the right product for their needs, whether it’s a high-end model or a discounted one. This balanced approach maximizes sales opportunities and maintains the dealership’s reputation for quality and value. 

This innovative approach to inventory management has proven to be a valuable tool in driving revenue and ensuring a dynamic, appealing showroom environment for customers. Implementing these steps can help you create a dynamic and effective Flash Sale Program, driving both inventory turnover and customer satisfaction.