Three companies known for producing and retailing a variety of hot tubs have joined resources in a strategic partnership.
Dream Maker Industries, Leisure Bay Industries Inc. and The Leisure Group have negotiated an arrangement in which manufacturing, marketing and retail functions are organized for greater efficiency, according to company officials.
“We’re excited on several fronts about this new partnership,” said Dave Czech, president of Dream Maker.
Ontario, Canada-based TLG has obtained equipment to produce rotationally molded spas from a manufacturing facility in Lake Mary, Fla., which was shared by the Leisure Bay and Dream Maker brands. TLG will continue to manufacture rotomold spas under the Dream Maker brand at the Florida site.
The retail chain Recreational Factory Warehouse (more commonly known as Rec Warehouse), which is owned by Leisure Bay, also will benefit from this partnership, Czech said. TLG is producing a line of acrylic spas to be sold exclusively at Rec Warehouse locations.
For logistical reasons, Dream Maker has relocated most of its acrylic spa molding equipment from the Lake Mary plant to TLG’s facility in Grimsby, Ontario, where TLG will produce vacuum-molded acrylic spas under the Dream Maker brand name. The acrylic spas made at the Ontario facility, officials said, will fit neatly into Dream Maker’s existing product line.
“We think it’s a natural extension, price-pointwise, from Dream Maker’s rotomold spas into Dream Maker’s value-priced acrylics,” Czech said. “Dream Maker is going to be concentrating on those two types of spas.”
Dream Maker had been making acrylic spas at the Lake Mary facility under the Leisure Bay brand name, to be sold to Rec Warehouse and Dream Maker dealers.
“With [The Leisure Group], we get a trusted fulfillment source backing us up, so we can focus our energy on expansion,” Czech said.
Aside from the equipment it relocated to TLG’s facility, Leisure Bay also sold the vacuum-forming equipment from its Lake Mary plant at public auction in early December, to focus on its other manufacturing operations. This has freed up more space for warehousing and rotomolding, Czech said.
“We were just cleaning house,” Czech said. “Dream Maker won’t be manufacturing acrylic spas at our Lake Mary facility anymore, but TLG will continue to produce rotomold spas there.”
The seeds of this three-way partnership took root in 2009, when Dream Maker partnered with TLG. In this initial agreement, Dream Maker took on marketing and sales duties for TLG, which has produced spas under several brand names for more than 25 years. Additionally, Dream Maker provided TLG with manufacturing space and equipment at its Florida facility, and TLG began branding one of its spa lines with the Dream Maker name.
Since then, the three companies have coordinated a variety of manufacturing, shipping, marketing and retail responsibilities among their various facilities, restructuring each part of the network as needed. This shift in manufacturing functions represents the latest step on that road toward more effective organization, officials explain.
“We’re committed to advancing the customer experience at every level,” Czech said.