01/22/2009 – San Gabriel Valley Newspaper Group Covers The Genesis
Cal Spas Creates New Product Line
Story From The San Gabriel Valley Tribune By Kevin Smith
POMONA – The nation’s economic downturn has chiseled away at the profits of many manufacturing firms while others have been forced to close their doors.
But some companies, including Cal Spas in Pomona, have taken proactive steps to adapt to a changing climate in which many consumers no longer have as much money to spend.
Cal Spas is producing a new Genesis line of spas using a “geoforming” process. This allows the shell and cabinet to be molded from a single sheet of acrylic, an alternative to the more traditional roto-molded hot tubs that are usually made with polyethylene, a plastic used in the manufacture of items like garbage cans and milk bottles.
The geoforming method produces a product with a smooth exterior that is highly durable. More importantly, it lowers the production cost and allows Cal Spas to sell the units for much less than traditional spas.
“All of our spas are built with the same quality but this creates a lower price point,” said Shiva Noble, Cal Spas’ executive vice president. “The average price for a spa is $7,999, but these will go for $2,999 to $3,499. They still give you hydrotherapy and warm water therapy, but they are much more affordable to purchase.”
Cal Spas’ patented 110 Dually system allows the new line of single-motor units to offer the performance of two pump heads and “plug and play” convenience.
The Genesis series features round, corner, bench and lounger models.
Noble said consumers who typically buy hot tubs have not been as adversely affected by the economic downturn because most of them are middle to upper middle-class buyers and above.
“The economy has really not affected them so much, but at the same time they are being a little more conservative and they’re not letting go of their dollars as easily as before,” she said. “ They want to pay a lower price for the same product.”
Richard Giss, a retail analyst with Deloitte & Touche, said businesses across the spectrum are rethinking their marketing strategies and, in many cases, revamping their product lines to keep consumers coming back.
“You don’t need to look any farther than the auto industry, which has suffered 20, 30, and 40 percent decreases in sales,” he said. “And the housing market has suffered a big downturn in sales.”
Many Americans who couldn’t keep pace with their rising mortgage payments lost their homes to foreclosure, impacting sales of such items as furniture, appliances, carpeting, paint, wood and a variety of other products.
Headquartered in Pomona, Cal Spas was founded in 1979. The company has evolved to become the world’s No. 1 manufacturer of home resort products, including hydrotherapy hot tubs, swim spas, gazebos, indoor/outdoor saunas, barbecue islands/carts/drop-in grills, outdoor fireplaces and firepits.