Dive industry BS

[gbrandon]

Lead_carrier once bubbled...


The kicker with ScubaPro is that once you make that order you are expected to increase it every year. If you miss a year or so the rep will finally show up and tell you that you will be required to purchase $$$$ or your franchise will be pulled. It doesn't matter to him since he will open another shop just up the road and meet HIS numbers.

Sounds like my friend that used to have a Hot Springs Spa store. They dangle a free trip (hawaii, italy, etc) to the dealers that sell x amount of hot tubs every year. After you make the first price goal they raise it the next year, and after that they raise it again, etc, etc. After 3 years,It got to be so bad that he had no chance in hell of making the goal. He ended up selling off that side of the business and focused on the car stereo business, which seems to be more profitable.

 

[pasley]

Rick Murchison once bubbled...

I owned my own retail business for a decade. Sold it, too. Nothing y'all are whinin' about is unique to the dive industry - stocking levels, exclusive territories, pricing agreements etc etc etc are the remnants of a business structure whose time has passed. The entire house of cards is caving in under the pressure of the internet, real-time delivery, drop-ships &c.
The days of the LDS as we know it are numbered.
Rick

Unfortunalty, you may be right. To survive today superstores like Sport Chalet which offer all sort of sporting goods including a nice dive shop are the most survivalable.

For the Smaller Mom & Pop dive shop, which has its own advantages and charm, to survive, they are going to have to take a lesson from the Independent Grocers Association (IGA) and pool their resources. Form a lose confedreation, advertise under a common banner, Example: Tom' Dive Shop and IDSA (Independer Dive Store Association) store and pool their purchasing power. Five or six stores place one combined order. This of it as forming a kind of unilon of dive shops against the marketing practices of the mfg. The dive shops could either be geographically spread enough to eliminate competing against each other or recognize that they will have to compete both on price and SERVICE.

Works for the food stores, and could, I think with a little work and thought could work for the dive shops. There are issues to look at but the leagle types can work those out.

Just MIHO

 

[Beach Bum k10]

MikeFerrara once bubbled...
As many of you know, I own a dive shop and in fact am in the process of closing it. We're not closed yet though. Anyway I have often posted about the demand that the manufacturers place on the dive shops and what I think the effect on the industry is.

I have been a Cressi dealer for a couple years now, however the cressi stuff doesn't sell that great and we mostly sell a few of their masks, fins and bags. Just today we had a customer who wanted a Cressi mask in a color that we don't have in stock. My wife called to order the mask and was told that they wouldn't fill the order unless we placed a $1000.00 order to bring us up to where we SHOULD be for the year.

My wife explained to them that she was going to get the mask on-line and fill the customers order whether Cressi liked it or not. Cressi told her that if she did that she was just supporting those who are putting us out of business. My wife explained to Cressi that it was the manufacturers who were putting us out of business. Keep in mind that Cressi get real silent when asked how Divein can sell Cressi regs for less than I pay for them.

BTW, the mask only cost me a couple dollars more from an online source.

I would rather deal with the mob than the dive equipment manufacturers. In fact I see little difference in methods and ethics.

Mike,
I'm really sorry to hear that you have to wrap up your business. I wish you success and hapiness in your future.

Have a great life.

 

[RichLockyer]

MikeFerrara once bubbled...
I got a phone call after they heard that I offered some one a 5% discount. Shortly after that 5th-D was doin a DIRF class right in my backyard and I heard they were offering a student discount.

Two years ago 5thD was about 10% lower than EE or Halcyon's FTP.

 

[RichLockyer]

PhotoTJ once bubbled...
They tried to force Oceanic to give them a better deal, and Oceanic said no. Even with the effective power of 32 LDS', Oceanic walked. (I was working at Sport Chalet at the time.)

They'll be back. SC carried Oceanic in 2002 and 2000, not in 2001 or this year.

 

[RichLockyer]

MikeFerrara once bubbled...
Compare that to scuba pro who wanted $18,000 for an opening order and aqualung who wanted $13,000.

DUI requires that you stock something like 5 "demo" suits.
Not rentals... but wallflowers... not for sale.

 

[Atticus]

I thought those suits could be sold but that you had to re-order the same day? ie: You must either have five suits on display or have ordered replacements already.

Seems our friendly neighborhood LDS had an issue with that..

 

[RichLockyer]

Atticus once bubbled...
I thought those suits could be sold but that you had to re-order the same day? ie: You must either have five suits on display or have ordered replacements already.

Seems our friendly neighborhood LDS had an issue with that..

That could very well be the case. DUI probably assumes that people would be unlikely to fit the demo suits and the LDS would be more likely to attempt to measure for a custom or signature series.

 

[ericfine50]

I believe that with DUI's demo program, you have to stock the entire size line (xs -xl) and are allowed to sell the suits after 1 year. It is a lot of inital investment for a smaller store to take on at first. DUI has the name recognition, but that dosen't always pay the bills.

Eric

 

[MikeFerrara]

We almost took on a DUI dealership this year. The only requirement was that we purchase six rental suits. That didn't work for us because we just don't have much call for rental drysuits. If it was just six suits that might have been different but I doubt it. Most of the suits we've sold are custom. People don't seeme to be shaped the way the anufacturers shape their suits. I might have been stuck owning those suits for a very long time. We were not required to buy all sizes.