For spa retailers, stock management is typically straightforward, with sales data from previous years offering a solid foundation for forecasting — barring the occasional hiccup. Then came COVID, followed by tariffs and ongoing supply chain uncertainty.
“It’s been a little more tricky than we’re used to,” says Cole Taylor, owner of Southern Leisure Spas & Patio, which operates five locations in Texas.
Before the pandemic, a just-in-time inventory was a viable strategy, says David Isaacs, owner of Isaacs Pools & Spas in Johnson City and Kingsport, Tennessee. “After the pandemic ended, supply chain and product availability did stabilize a bit,” he says. “But today, inflation and the threat — or implementation — of tariffs have forced us to forecast more carefully and be more thoughtful about purchasing inventory.”
Taylor says tariffs have complicated timing, making it difficult to predict when to buy. Last fall and early winter, his instincts and concern about market instability prompted him to bulk up his inventory — an unplanned move that has paid off.
Still, inflation adds pressure. “Stocking up is more expensive than at any time in the history of this industry,” Isaacs says. “It requires more focus on how small companies like mine finance or pay for large amounts of inventory.”
To strike a balance, many retailers continue using last year’s first-quarter and second-quarter sales as a baseline. From there, Isaacs evaluates manufacturer offers at the start of the year — often at trade shows — and aligns decisions with his company’s goals. These deals may include truckload discounts, bundled accessories or interest-free floor plan terms, depending on order volume.
“If our strategic plan is to reduce floor plan interest, we will more than likely take advantage of that offer,” Isaacs says. “If we are working toward creating a higher average sale price for the hot tubs, we may opt for the accessory offer.”
He adds that in recent years, midseason offers have also become more common. “We usually wait until we see those before ordering for Q3 and Q4,” he says. “If we don’t see those offers, we’ll plan accordingly and order special orders and inventory based on need rather than anticipation.”
Taylor also takes a data-driven approach. “We look at our point-of-sale system, our sell-through rate,” he says. “I like to turn my inventory four times a year with a lot of my consumables. So every three months, we should be turning everything. That’s just a basic rule of thumb for retail.”
Both Taylor and Isaacs rely on inventory software. “We use an industry-specific software from Evosus to manage the entire company,” Isaacs says. “It can set inventory reorder alerts, allows for the creation of stock sites and assists in cycle counting.” He adds that chemicals are just one category among the others in this system and are monitored the same way.
Taylor uses the Lightspeed point-of-sale platform to forecast based on past performance. “That’s been helpful because we’re buying five to six months’ worth of supply — even for things like chemicals — where we typically would buy two to three months’ supply at a time,” he says. “We just want to make sure we’re ahead of it.”
So far, current economic and tariff conditions haven’t had a major impact on retailers, Taylor says, though he’s heard manufacturers are bearing the brunt of rising material costs. Southern Leisure’s custom orders with Bullfrog Spas, its main domestic supplier, haven’t faced major delays. But custom products from overseas are another story: “We’ve put a stop to that,” he says. “It’s too much guesswork. We can’t sell it and not know what the price is going to be with tariffs and [delays].”
Managing inventory effectively requires structure and foresight. For those struggling, Isaacs recommends inventory software, assigning one person to handle all ordering and receiving and conducting cycle counts every three months. Having designated bins or shelves for products also makes it easier to reconcile physical stock with digital records. “It is difficult to plan inventory needs if you have no idea what you have and what you have sold,” he says.