IN 2004, Jason Joswick purchased Valley Hot Spring Spas, in Murrieta, Calif., from a softball buddy. The two had planned on going into business together and opening a new location. But the friend changed his tune.
“I’m going on vacation,” Joswick recalls his friend saying. “Run the store, get your feet wet and see what you think.” The two-week vacation turned into four, and in the end his friend chose to sell the business. Joswick went for it. “I didn’t want to regret not trying retail,” he says. “Eight years later, here we are.”
Joswick, a computer programmer by trade, wasn’t new to the hot tub business, however: He’d previously worked for Watkins Manufacturing as the IT manager. When Joswick purchased Valley, it had been operated with a warehouse-style approach. Joswick has since transformed it into a high-end retail store selling a backyard experience. He sells hot tubs, swim spas, custom BBQs they build themselves, saunas and patio furniture. And the “experience” goes beyond customer service — Joswick shared a glowing, 700-word letter from appreciative customer — to the look and feel of the store.
“I’m a perfectionist,” Joswick says, adding that his biggest pet peeve is seeing the store’s entryway rug dirty. “It’s all about the first impression. I like the store to smell good and feel good. It’s not about me — it’s about [the customer]. So if I can convey that in our presentation and their experience not only the first time, but for years after, that’s what we’re about.”
Its Murrieta location has presented some obstacles for Valley Hot Spring. “Our local economy is brutal,” Joswick says. “My market remains on the top-five depressed counties list in America.” Therefore, it became essential to hit all price points: Joswick brought in Cal Spas to reach the $2,999 to $3,999 customers. He has also begun selling used spas and offering trade-ins. “I’ve got 11 spas outside the front of my store that are all trade-ins from the last three weeks,” Joswick says.
Another challenge? There aren’t fairs or home shows in the area where the store can exhibit. In order to get in front of new people, they’ve had to get creative: Joswick participates in a fundraiser for Children’s Miracle Network Hospitals organized through Costco. Valley Hot Spring donates $500 to the charity, and Costco allows them to put up a display (big enough for one hot tub or sauna) in their store for one day. Traffic is great, Joswick says, and Valley is happy to support a good cause.
The company also does parking-lot sales at local malls and other high-traffic areas. The key to making those events a success?
“Sign twirlers,” Joswick says. “We do four twirlers at every event, and they sit out there all day on every corner and get people’s attention. It’s one of our best marketing ideas ever.”
Despite a tough market and economy, Valley is up year-to-date over 2011 (which itself was up over 2010). He credits his staff, whom he considers family. “You’re only as strong as your weakest players,” Joswick says. “So having a good team has really helped me grow the last couple years.”
He also hopes to open another location before the end of the year.
“I have streamlined the whole business to make a profit,” he says, “and am less interested in growth for the sake of ego or vendor-incentive programs — unless they are in the best interest of my company.”