Cal Spas adapts to changing market

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We are mired in a volatile economy - a financial morass that has seen many companies struggle to stay afloat while others have gone under.

For many businesses, it's become a make-or-break situation. Cal Spas in Pomona was by no means on the ropes. But the company did opt to be proactive by coming up with a new Genesis line of spas that they're selling for much less.

 "The average price for a spa is $7,999, but these will go for $2,999 to $3,499," says Shiva Noble, the company's executive vice president. "They still give you hydrotherapy and warm water therapy, but they are much more affordable to purchase."

This is the kind of re-tooling businesses need to be doing. Because in most cases, customers aren't going to be walking into a business saying, "Look Marge - a high-priced bedroom set. Let's get it. I really want to spend lots of money."

No, the conversation will more likely go something like this: "This is way too much money, and we just don't have it. Let's go somewhere else ... unless they have something cheaper here ..."

In Cal Spa's case, they do.

And now for something completely different ...

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About this blog

Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.

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Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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About this Entry

This page contains a single entry by Kevin Smith published on January 20, 2009 5:57 PM.

NAMM show attendance down, innovation up was the previous entry in this blog.

Retailers face a challenging market is the next entry in this blog.

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SanGabe.biz is the San Gabriel Valley Newspaper Group's online resource for local business development. Get info on tax law, accounting, legal forms, marketing, sales and more.
The San Gabriel Valley Small Business Development Center offers classes, counseling and consulting for entrepreneurs and small business owners. The SBDC is a partnership between Mt. San Antonio College and the U.S. Small Business Administration.
The San Gabriel Valley Economic Partnership is a nonprofit corporation dedicated to improving the valley's economy.

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