fbpx

Hot Tubs And BBQs

Brett and Jim Bergstrom have been through the hot tub business wringer and back. Now at their third location, the two have had time to reflect on the lessons they learned while in the trenches.

failure is never an option // At first glance, you might not think that Brett and Jim Bergstrom would be included in a section about retail “stars.” But what many would consider a failure, the Bergstroms don’t see as a mistake, but rather a lesson learned.

When Brett decided to leave the corporate world, he wanted to take the route of a good friend of his who owns a successful Marquis hot tub dealership. With his father, Jim, Brett opened a small store in the rapidly growing city Surprise, Ariz., a suburb of Phoenix. 

“We were very blessed there,” says Brett. “We did good business there. In our first full year, we made the top 15 retailers for Marquis. It was really exciting. Then I started thinking about expanding out and carrying more than just hot tubs, which was all we really had room for.”

Since the Surprise location didn’t get any customers coming from Metro Phoenix, Brett thought a better location would increase traffic and sales after a couple of slow months. So the Bergstroms moved into a 5,000-square-foot showroom. The space housed four barbecue islands, fireplaces, saunas, hot tubs and a large wet-test room with five hot tubs. Unfortunately, the move didn’t work out as they had planned.

“We never got the traffic we needed,” Brett says. “We ended up giving away several of the fireplaces to charity functions because nobody was buying fireplaces. We never did sell a sauna. We came to the decision that we either go out of business or we go back to doing it the way we started.”

Jim Bergstrom says that even though the move out of the big location was painful, it was the right thing to do. “Unfortunately, at my age, many of the lessons you learn in life can cost money, especially if you’re in business,” Jim says. “And in this case, yes, there was a financial wound that went along with this. But fortunately we were able to get a hold of what was happening quickly enough. There’s no doubt in my mind we would’ve been totally bankrupt [if we hadn’t moved again].

Now that they are settled into their smaller location, they have been able to get back to the basics and reflect on what the turmoil has taught them.

- Sponsor -

“I was gone all the time,” Brett says. “I like this so much more, knowing every customer, it’s almost like they’re part of the family. That sounds like a worn-out cliché, but it’s so true. We literally know by name and face all of our customers.”

Jim says despite the upheaval and financial loss, they aren’t going to shy away from good opportunities when they come around. He encourages anyone who is looking to expand into other product lines to think about it carefully.

“First of all, does it [the new product] work with your customer base?” Jim asks. “Are they looking for entertainment and enjoyment in the home and in the backyard? Spas and barbecue islands are a great fit. Children’s playground equipment is a great fit, but I don’t see those people coming into my store looking for playground equipment. If you’re a hot tub dealer, that’s where you really better keep your focus and your energy number one.”

The traffic at Hot Tubs & BBQs is starting to pick up again, and they are operating at a fraction of the cost of the large showroom.

And what is the biggest lesson that they’ve learned from this experience?

That you don’t have to be the biggest retailer to be the best retailer. 

“We’re back to focusing on what we know and what we do best and that’s selling Marquis hot tubs,” Jim says. “2,000 square feet is adequate to have a great-looking hot tub store.”