An LDS certifies a class of 10 divers. At the end of the class, 5 of them are going to buy their own gear. (Lets just use a computer as an example.)
List price of said computer is $379.95 cost is $189.98
If you sell the computer at 10% off list for $341.95 1 of the 5 buys it for a total profit of $151.97
If you sell the computer at 30% off list for $265.96 3 of the 5 buys it for a total profit of $227.94
If you sell the computer at 35% off list for $246.96 5 of the 5 buys it for a total profit of $284.90
I'm being conservative on my estimates saying that only half of the people certified will buy their own gear. Surely it's more than half. I also used 35% because that will get you pretty close to everyone on the internet. Usually anything lower than that is a closeout of some kind.
You also should consider that if you can sell to all 5 of them some will by a higher end computer when presented with such good deals. In that case you will increase your profit even more because of the higher priced computer.
If you look at this example you see that it does not take huge volumes to realize greater profits. You have also created a happy group of repeat customers. You have a captive group of students that already trust you. Don't let them go somewhere else. These are your customers to loose. When they go home and research the internet they will find one of two things. Either they are getting as good a deal at the LDS as offered anywhere in the world, or they will find a better deal somewhere else.
There are shops out there right now making this model work and being very successful at it. I just wish more would do it but some cities have only the 10% off type shops so people go home and buy from the internet.
List price of said computer is $379.95 cost is $189.98
If you sell the computer at 10% off list for $341.95 1 of the 5 buys it for a total profit of $151.97
If you sell the computer at 30% off list for $265.96 3 of the 5 buys it for a total profit of $227.94
If you sell the computer at 35% off list for $246.96 5 of the 5 buys it for a total profit of $284.90
I'm being conservative on my estimates saying that only half of the people certified will buy their own gear. Surely it's more than half. I also used 35% because that will get you pretty close to everyone on the internet. Usually anything lower than that is a closeout of some kind.
You also should consider that if you can sell to all 5 of them some will by a higher end computer when presented with such good deals. In that case you will increase your profit even more because of the higher priced computer.
If you look at this example you see that it does not take huge volumes to realize greater profits. You have also created a happy group of repeat customers. You have a captive group of students that already trust you. Don't let them go somewhere else. These are your customers to loose. When they go home and research the internet they will find one of two things. Either they are getting as good a deal at the LDS as offered anywhere in the world, or they will find a better deal somewhere else.
There are shops out there right now making this model work and being very successful at it. I just wish more would do it but some cities have only the 10% off type shops so people go home and buy from the internet.