Aqualung's stance on e commerce

[mdb]

I fail to see the reasoning in this business model. Does anyone really believe that kids raised in the age of the internet are going to even consider buying a product that prohibits or restricts on-line sales? If Aqua Lung can stop 100% of the grey market sales of its product, all they will accomplish is a reduction in their market share.

Another HUGE flaw in their LDS only model is product availability. Small shops have small inventories. Half the time when I want something from my LDS they have to order it. Then they usually wait and combine it with other items to save on shipping. I have literally waited months for some items. Today's consumer wants things yesterday, not next month.

So Aqua Lungs answer to the internet is for a diver to pay full price and wait 2 weeks to get their products?

The sad thing is my LDS (which I actually like and support) believes the price protection business model will eventually work. They have been sold a pipe dream by the dive equipment manufacturers that will likely cause their demise.

Well put. IMHO, right on target. No turning back the hands of time. Internet sales went over a billion dollars this holiday season. A 26% increase from a year ago.

 

[redacted]

Bad precedent. Manufacturers have quite a bit of latitude in their private forums and we do that for a reason. They also get e-mails everytime someone posts in there so they CAN respond. AL has already suffered some bad press on here and I don't want to exacerbate that one whit. I even e-mailed and called their corporate office (no response) when those negative threads came up. They need to be here to CLARIFY things (such as this statement) and to give us their side. We clearly want them here as well. It's a win/win situation for everyone involved.

I do understand. Most of these kinds of things I'm only half serious about anyway. So how about sub-forums in the Whine & Cheese forum?

 

[The Chairman]

Wasn't their response to this was to threaten to sue Scubaboard for hosting these negative threads?

No, niether Aqualung nor Aire Liquide threaten ScubaBoard.com or InterMedia Publications with any law suit. There has not even been a hint that they intend to seek any legal avenue. ScubaBoard has been completely neutral in regards to Aqualung et al and that stance will continue.

 

[fire_diver]

The Internet should be recognized as a tool and the dive industry needs to embrace its technology. We need to continue to look for the opportunities and benefits that it offers.

Well, it seems that AL does see that the internet can be used to increase profits. Right here they tell the LDS to "embrace" it and look for ways to make it more of a benefit.

local professional dive retailer. That is where diving’s customers are created. It is where we truly have the opportunity to create committed divers, as opposed to teaching people to dive.

***? My LDS shoulnd't be teaching me to dive? Damn, now where will I get my training? I guess my LDS should be strictly a scuba retail store now.

When companies talk about or endorse e-commerce in the scuba industry it means selling scuba gear on-line, which has not and will not create a level playing field for retailers as some have suggested. In fact widespread endorsement of on-line sales may drive more sales to the established Internet players.

So AL is saying that more and more companies are "selling scuba gear on-line," and that this is going to screw the LDS who sells only AL.

Aqua Lung will continue to stand by and support its “in-store only” retail sales and service policies.

So I guess they don't care about the LDS being able to compete and stay in business.


Ok, here's what I understand AL is stating to thier retailers.... The internet is a great tool to build your business. We don't want you doing ANYTHING but selling our product. Your competing LDS is making a killing from the internet, but you can't.
We make most of money from greymarket (while publicly denouncing them), so we don't care if you stay in business or not.

Wow, thanks alot AL. You made my next scuba purchacing simple, cause it WON'T be your product.

Ok, now as a side note... NETDOC, your avatar is creeping me out. I understand the 800 pound gorilla thing, but why is he tweeking his own nipples?!

FD

 

[The Chairman]

Where did this statement from Aqualung come from? It wasn't posted on their website in their news releases.

Chris obtained a copy a day early from DiveNewsWire. The intended release date is tomorrow. I have confirmed this through DiveNewsWire that there was a slight glitch which displayed this information for a short length of time this morning. Chris happened to check it at just the right time. For those who don't know, www.Diverwire.com is intended for the general diving public. www.DiveNewsWire.com is for industry professionals.

 

[The Chairman]

Ok, now as a side note... NETDOC, your avatar is creeping me out. I understand the 800 pound gorilla thing, but why is he tweeking his own nipples?!

Short answer: Because he can.

In reality: He is striking that Body Builder pose. He refuses to try and tweak perfection.

 

[barebones]

It seems to me that Aqualung, Scubapro, Atomic and others are putting their dealers on anything but a level playing field. Manufactures selling to the online outfits are requiring them to meet minimum pricing guidelines. We can all get the same price at the LDS on those products. Some of the online guys grey market the good stuff. Some don't. The good stuff is broadly distributed and the only way the online guys can compete is with price.

If it wasn't the good stuff, they couldn't care less. Divers go grey and or online because of price, convenience and availability (in that order). Some where down the line is factory warranty, nice people, pretty store and great social atmosphere (not in any order).

All the manufactures should require the LDS to stock broad and deep on all of their popular items. That puts two out of the three main reasons divers buy on the side of LDS. If they can add a couple of the lesser customer values, They have the high ground.

The Internet is the wave and its here. Because of it, big companies have lost control of their distribution. It reduces rent and payroll and advertising beyond wat the LDS can match. The Internet will and has made the LDS better. Good shops are posting sales increases. Bad or poorly located shops are going out.

Lets go dining.

Barebones

 

[PhilEllis]

I fail to see the reasoning in this business model. Does anyone really believe that kids raised in the age of the internet are going to even consider buying a product that prohibits or restricts on-line sales? If Aqua Lung can stop 100% of the grey market sales of its product, all they will accomplish is a reduction in their market share.

Another HUGE flaw in their LDS only model is product availability. Small shops have small inventories. Half the time when I want something from my LDS they have to order it. Then they usually wait and combine it with other items to save on shipping. I have literally waited months for some items. Today's consumer wants things yesterday, not next month.

So Aqua Lungs answer to the internet is for a diver to pay full price and wait 2 weeks to get their products?

The sad thing is my LDS (which I actually like and support) believes the price protection business model will eventually work. They have been sold a pipe dream by the dive equipment manufacturers that will likely cause their demise.

We have to understand that the guys who run the large scuba companies are guys with good intent. They grew up under the dive shop model where information was limited to that given out by the dive shop owner, where you got new students by getting each of your new students to "give you the name of three close friends". They would then call them at home, at night, and encourage them to come in and learn to dive with their friends. Much has changed. Information is now available to the consumer in variety of ways. And why don't you try calling someone at night, during their dinner hour, and offer to "sell" them all of the fun of scuba diving. They will hang up on your face for bothering them at night, and they will never again speak to the friend that gave out their name.

The executives of the scuba companies prospered under this system. After all, they parlayed their experience into an executive position at a big scuba company. People who prosper under a system are loathe to change that system.

It is a shame that the local scuba store owner doesn't simpy use common sense. The new customer is the child of the baby boomer generation. This group prefers ipods to music cd's....they prefer the internet over the yellow pages for finding phone numbers....they prefer text messages over voice......in short, they prefer the easy way on everything. Ten years from now, if one of these kids happens to live NEXT DOOR to a local scuba store, when they get ready to purchase scuba equipment, they will probably get on the internet to buy it. That is the change that is taking place. EVERY SCUBA STORE OWNER bought his children or grand-children Christmas presents. Look at what they bought them.....not stuff of my generation, but stuff of THEIR generation.

My dad's closest friend was a gigantic downtown merchant in Rocky Mount, North Carolina. When the first mall came to town, my dad asked him if he had considered moving. He said, "he** NO! A mall will never replace downtown"

Enough said.

Phil Ellis

 

[mike_s]

Here's what's ironic... Wasn't Aqualung started from US Divers?

And how did US Divers get its start? by selling via mail-order-catalog. (because in the 1950's there weren't any dive stores hardly). So how is selling over the internet any different than mail order catalog? it's just an online catalog?

If this is true, here is Aqualungs "heritage" with it's foot stuck in its mouth.

 

[Debraw]

I read the Aqualung statement and for all I care they can continue to live in the dark ages. Somebody needs to get down the Aqualung basement and wake those guys up who are "the first diving equipment manufacturer to employ Net Enforcers to assist in reducing “third party” or “grey market” shipments from unauthorized sources." They are failing miserably.......