Sorry to jump on you so hard Hallmac. It was 5 am when I saw your post. I hear this type of discussion all the time and it really does hurt me personally and doesn't help the industry one bit. It seems to be a real bug-a-boo for y'all down there more than Canadians.
The manufacturers do not 'set' prices. They determine their production costs and then add the required mark-up so they stay in business (usually 20 - 40%) and that is their dealer price (wholesale price).
Why shouldn't the dive store owner be able to employ the same sound business practice?
That is, determine how much mark-up will allow them to stock, sell and service that product and add that to the dealer price. Usually in all specialty leisure industries for a full service retailer that mark-up is 100%. Realize that the overhead for a retailer is many times more than for a manufacturer. In some industries, retailer mark-up is much higher than that. When is the last time you purchased a ring or earings for your partner? Mark-up in that business is closer to 300% (now you know why they can give such a 'deal'). Same goes for furniture, clothing, auto accessories, etc. (ever see a furniture advert offering 70% off? And he's still in business!) Another difference is that once you've got your scuba gear, there's no need to spend more other than for service. It's usually a one time buy. The scuba retailer has no likelihood of selling you the same product again as would happen in many other retail businesses.
Anyway, if the dealer does not get enough of a mark-up, he will simply sell-off the remaining gear and change lines. No one wins in that situation because now the manufacturer has to find another dealer to carry his gear. There is an immediate loss of income for him which adds to his cost which must be recovered in his wholesale price PLUS the divers do not have a reliable source for the product, service or warrantee. The few divers who got a good 'deal' now can't get service, parts, or warrantee. The reason for the dealers having price guidlines is to ensure their product does not suffer that fate from the actions of a few fly-by-nighters. Generally the manufacturer will try to have his dealers agree and then work together to ensure fair, adequate retail prices. Everybody wins - the manufacturer has a reliable, long-time dealer, the dealer can stay in business and offer all the additional things that a good scuba store should (see my prior post), the diver is assured reliable service and consistant, fair pricing.
The price guidleines are NOT there to gouge the diver. The diver is going to pay for all the costs of doing business anyway. That's how it should be - he's the end user, the one having fun, the one getting the benefits of the research, production and distribution, etc. Neither the manufacturer or the dealer are there to enjoy themselves - it's their business.
What keeps the prices reasonable? First find me a dive shop owner who's become a millionaire and retired early! Second realize that each dealer is dependent on the return business of the divers. The dealer must make enough to stay in business and keep offering all his services to the diver and also remain competitive not only with other dive stores but also with all the other leisure industry businesses that are trying daily to take the diver's money. Trust me after 30 years in the scuba business - it ain't a cake walk. In fact, it's a daily tightrope act just to survive.
Even more so today with the internet!
Like it or not YOU are in partnership with the dealer and manufacturer. If you don't come to the dive store and pay for the services and products which reimburse the dealer, he won't buy from the manufacturer. Soon you'll have no dealer AND no manufacturer. The manufacturer is also very concerned with your wants and needs and he works with the dealer to ensure the product is good, well-serviced and guaranteed, suits the divers needs AND is priced to be competitive and affordable for the diver while returning sufficient to allow the continued production and retailing.
However, in this partnership, your LDS is the hardest working and least appreciated. Hell, the manfuacturer does squat! He finds (on the internet) a supplier of masks in the Orient, works a deal with him, imports them and sells them to the dealer. Whoop-dee-doo!! Any idiot with a bit of money can do that! Sometimes the manufacturer is so smooth that he finds the product and orders it, then he sells the product to the retailer before it arrives, maybe even gets paid in advance (for a small discount) and has it shipped direct to the dealer. He doesn't even see or touch the damn mask!! I'm actually envious. He has no overhead, no staff, no wearhouse, no insurance, nothing!
The poor retailer is trying to stay in business so he falls for this. He agrees to buy the new product because the divers will pay a reasonable price for it, he pays for it in advance, he pays for shipping, he displays it in his store (rent, heat, hydro, advertising, fixtures, staff), trys to sell it in competition with all the other products and make enough so he can feed his family, keep his compressor running, rent the local pool, pay the instructors, make a deposit for the trip you're going on with the store and so on endlessly. Then he finds that some diver/ hobbyist is selling the same product out of his van for 25% less! Or another store can't pay the rent and needs to cash in some of his stock! Now what does he do??
Right!! Gives up and goes into the computer business. And of course, you and all the other divers ***** about the fact that he closed the store up on you!!
The $20-$30-$40 that you saved by buying from the discounter or "your friend in the business" can be a very costly saving.
I started this reply as an apology for my brusqeness in the earlier post and now I'm just as bad. Obviously this kind of action by the divers hurts me personally. It's bad enough that you don't support your LDS for some reason - don't take active steps to put him out of business. Remember that the diver is the recipient of everything done in the scuba business. If you harm the system, you get hurt.
However you can affect the system positively. Why not work with your LDS as a group and see if he can offer discounts for group sales? Does he give a discount for cash? Do single diver large purchases warrant another discount?
Rather than spend your time and talent beating up your partners, work with them.
