Competing in the Internet World.

[redacted]

To bad that approach is not more common. That kind of value added doesn't just work well against Leisurepro, but even against the "authorized" internet retailers. Unfortunately, MSRP accompanied by coersion and cajoling still seem to be the more popular approaches by many shops.

 

[RJP]

ANYONE that thinks prices doesn't matter is making a serious mistake.

To be clear, I'm not saying price doesn't matter. What I'm saying is that any retailer has to decide to what degree they are going to let price be their differentiator.

Now Phil, you say that you would happily sell at a higher price if you could. But the truth of the matter is, you can't. At least not and still complete in the webspace. Not a knock on you, it's a business decision you've made, and by all accounts for you a good one.

But let's not be naive! If you charged more, approaching LDS pricing, you would have no differentiator to the web customer. Largely the only reason someone buys something from you over the web/phone from 1,000 miles away is that your price is cheaper. If it were not, there'd be no reason to buy from you vs an LDS all other things equal. (Again, not a knock, just an observation from a marketing professional.)

Your value proposition to the customer is low pricing. My LDS's value proposition is service, relationships, trust, etc. For some things that value is worth 10% off MSRP to me. To other people it may not.

Sure there's Walmart and Costco's, but there's also Nordtsrom's and Neiman Marcus. There are different markets and different price points for different customers.

 

[TheRedHead]

Sure there's Walmart and Costco's, but there's also Nordtsrom's and Neiman Marcus. There are different markets and different price points for different customers.

So true and both Nordstrom and Neiman Marcus sell online as well. I love shopping online at Neiman Marcus.

 

[Hollywoodivers]

Out of ten,,,, 5 are going to buy their own gear ? Huh ? 5 of them are going to dive once everyother year.
2 of them are going to never dive again after their honeymoon.
3 of them are going to become your good customers and buy their own gear. Yes they are going to get a good deal, yes they are going to get service and take some more classes. if half the students bought their own gear the scuba industry would not have worry in the world...yeeeeeeahw.....I would love that,
send me some of those "magic" classes ! i like your attitude !
Oh yes and the LDS will be there to assemble it, test it, rebuild it and train you to Ice Dive, Cave Dive, Deep Dive and fill your tanks with Air, Nitrox, Tri Mix and Heliox...The internet dealer will be there to fill you with pipe dreams....! I need to get my two cents in for the LDS. If it hadn't been for my LDS I would have never gotten certified. I would have never taken all those classes and learned to dive in all those cool places......

 

[Gamehunter]

One of the problems that no one has addressed is that with all the service after the purchase from the LDS has said they will offer for that product is wheather the store will be there next year when you need to take your equip back for an annual. Many shops are closing there doors and getting regular jobs to pay there bills, in limited markets when an owner can no longer support their families with their hobby then they need to look elseware. With the rising cost of fuel insurance light heat the limited markets are no longer able to provide the owner with any comforts that should come along with bussiness ownership. As far as the mention of it will take more labor to satisfy more students with competitve pricing is a crock. I don't know how many shops that I have walked in and the workers are twiddeling their thumbs. MArk down some of the old stuff on the shelves invest into your busuness so that the customer can do the touchy feely thing and help them make educated decisions on their equipment. Unless you can have the item in the hands of the consumer faster than the internet you will ALWAYS LOSE in IMHO

 

[NadMat]

In recent search for new BC & AAS I was quoted msrp at my LDS, and went on line to compare prices. LP had best prices, but are not an authorized dealer, I would be having to mail equipment in for servicing, doable but not desired. I contacted LDS and informed them of pricing differences and that I would rather buy local and support my LDS, but could not justify over a hundred dollars difference on the pricing. We went back an forth with a few emails, but in end they met my desired pricing on these large ticket items.

For that they will get my customer loyalty, many small ticket purchases, even if are somewhat above internet pricing on those I am less likely to 'shop' them and more likely to want in my hands now. Also many of my continued training dollars as they are local SSI shop. I will still continue to spread my diving dollars among several local shops and some internet purchases, but I alway give my LDS a shot at any purchase I make, purchasing elsewhere because of lack of desired product or way to uncompetitive a price.


Birthday is end of month, new BC & AAS purchase is combo birthday present to self, celebration of new job beginning August (with associated large new paycheck), and last big expendature for year as I buckle down and pay down debts and rebuild savings to proper levels again.