Imported Baltic sauna equipment was already pricey – tariffs will likely make it worse

The Overpriced Sauna: Why North Americans Pay More

The UPS driver had barely made his way back onto his big brown truck as Jim Carlson began unpacking his “loot.” 7 boxes total: a heater, a controller, and 5 heavy boxes of rocks, The shipment set him back over $4,000 in total, but Jim and his wife were committed to the sauna craze, and making it happen for themselves.

“I didn’t know that I could pick up perfectly good sauna rocks from a landscape center a couple miles away” he said. “I guess I put my faith in the sauna reseller that rocks from Finland were the way to go.”

And as Jim unpacked the heater, that’s when his critique from 30 years in manufacturing kicked in. “$2,500 and not much to it.” Heating elements mounted on a base, and “some sort of chicken wire” to hold in rocks that get packed around the heating elements. “There is little weight to it, and it got me thinking how little there is to these things, really.”

And it was the WiFi controller that really got him going. “This little thing? $1,700? Come on!”

“It’s from Finland” boasts the marketing website.

Like a child at Christmas, underwhelmed by the reality behind the shiny advertisement, many North American sauna buyers are left wondering—why does this equipment cost so much?

The Price vs. Value Problem

The justification often given is that Finns and Estonians know more about saunas than North Americans. While their expertise is undeniable, what’s also undeniable is that this same equipment is far cheaper in its home countries than when it reaches the U.S. and Canada.

UL certification, a requirement for many electrical products in North America, does come at a cost—several thousand dollars for testing and certification, plus quarterly on-site inspections. But safety is a top priority for American consumers, and compliance is expected. However, even a rough cost breakdown from an engineering professor wouldn’t come close to explaining why the price can triple compared to European markets.

The Hidden Costs (or Excuses?)

Adding to the frustration, recent tariffs—now at 20% for many imported sauna products—inflate already steep prices. Yet, even before tariffs, the baseline cost of these products was disproportionately high.

Where does all this extra cost go? Marketing? Distributor markups? Exclusivity pricing based on the niche market of sauna enthusiasts? A casual trip down the Bauhaus (Europe’s version of Home Depot) sauna aisle would leave most North Americans in shock at the reasonable pricing available abroad.

Hands in the pie

The North America sauna pricing model goes back at least a generation. Baltic equipment manufacturers looked to align with pool and spa dealers dotting every town in North America as their go to market strategy. Glad handing at the pool & spa expo, “dealerships” were established with any pool and spa company willing to carve out a showroom space for a couple buckets, ladles, thermometer and a sauna door, putting them in the sauna business overnight.

A thick book, detailing all the equipment options, kits, accessories – including pricing – would be sent along. And about the pricing? Stocking dealers: 40% – almost half off the list price. Non stocking dealers: 30% off list.

Welcome to the 1, 2, 4 pricing model.

• $1,000: Cost, with a little fluff, to make a product and put it on a container.
• $2,000: Manufacturers sell price to the US.
• $4,000: Sell price to the customer, which includes dealer and distributors margin.

So, you could say that Jim Carlson’s loot on his front steps may likely have about $1,000 maximum in total cost behind it.

Luxury vs. Everyman’s thing

“In Finland and the Baltics, there are likely more sauna manufacturers because sauna is an everyman’s activity. The larger supply drives down prices,” explains Wade Litt, Ph.D. economist and founder and operator of LÖ-LU Sauna in Columbus, Ohio. Wade has been on multiple trips to Finland, has walked the aisles of their big box department stores, and has seen the pricing of sauna equipment oversees firsthand.

The Bauhaus parking lot appears not much different than the North American Home Depot, right down to the orange color motif and warehouse style shopping. A couple mouse clicks through their website confirms the triple mark-up model. While looking at the prices, remember that each includes 25.5% VAT! But Wade sees a correction coming in the US market:

“It becomes a chicken and the egg issue.” Wade explains. As more people seek out sauna for themselves, demand will continue to rise. Although increased demand creates upward price pressures – especially in the States where sauna is still more of a luxury market relative to northern Europe – this also incentivizes more manufacturers to enter the market, alleviating price pressures and increasing variety. “Increased sauna popularity may lead to more underwhelming stoves, but product differentiation will help spread sauna to more people.”

As it is less commonplace, manufactures are met with less price sensitivity, and until recently, less ability for shopping around.

Electric vs. wood fired – apples to apples

European manufacturers of electric sauna heaters modify the three phase European to single phase North American. And smart manufacturers pony up for UL listings. But for apples to apples price comparisons, we can look at wood fired sauna heaters, which beyond a stove pipe adapter ($15 cost to make, but $115 retail) from European 4.5″ to North American 6″ diameter, the stove is essentially the same.

Here is a cloudy screen shot from Netrauta.fi as example, where the wood burning sauna stove price disparity – Finland to US – becomes very clear:

The Future of Sauna Pricing in North America

If the North American market is serious about growing sauna culture, it needs to reckon with the pricing problem. When passionate sauna users are considering DIY alternatives or importing equipment themselves, it’s a sign that something is broken. Whether through domestic manufacturing, lower distributor markups, or direct-to-consumer models, there’s room for a major shift in sauna affordability.

Until then, many buyers will keep unboxing their overpriced sauna controllers and heaters, wondering where all that money really went.