OK! OK! I'll go back and read the entire petition!!
If I've jumped all over hallmac by mistake I certainly apologize.
The manufacturers do have control ovr the retail prices in the US to some extent. They definately have control over who may sell their product line both in the US and here. They don't dictate what other lines you can or cannot have directly. They can however deny their line to your store for any reason they so choose. That aspect anyway I think is good.
If I'm trying to build a good scuba business and work hard to represent a fine line of scuba gear for several years, I don't want a dive shop opening next door with the same lines. It's usually in the first couple of years (5?) that an owner feels the need to discount. If he does, then my efforts to have a good store for the divers are wasted. The new store will close anyway (if he discounts) and my business is hurt too in the interim. I may decide to stop carrying the line so now the manufacturer is hurt AND the divers who have that gear are also PO'd.
Most manufacturers want stores who carry their line to be legitimate businesses with an investment and a plan. Besides, there are lots of lines for stores to choose from. What's the advantage to having several stores in close proximity carrying the same line? It's to the divers advantage if they each have different lines. That way you can compare the different brands easily and buy what best suits you.
Normoxic - Where in the US are there several stores in one locality that carry the same brands and are doing well? First the scuba business in Canada is doing very well for the stores that are businesslike. The US is slow right now in every industry. Allowing every store to carry every line will certainly lead to problems and particularly in the US. You seldom find a Ford dealer next door to a Ford dealer or a MacDonalds close to another MacDonalds. Simple business sense.
If every store has the same lines, the only way to increase your market share is to lower prices until the diver buys from you.
I find it really amusing when a store owner brags that he sells more of an item than I do. I could sell more too if I dropped my prices. It's not units sold that matter - it's return! He may sell more than I do BUT I make a higher return on the ones I do sell and I put more in the bank!! Who's the better retailer? Any bimbo can drop the price to sell something. Hell I can afford to give stuff away - does that make me a better businessman or dive store owner? And does the diver win? We've been through that and the answer is no!! Save a few dollars on the purchase and then spend twice your savings trying to find good service or shipping the item back and forth to the supplier for warranty. Not to mention all the other services a good dive store provides.
I've had the privelege over the years of selling every brand name out there and a lot that no longer exist. I was at one time one of the biggest retailers in the GTA of Dacor, Mares, USD (don't tell anyone!), Seaquest, Poseidon, ProSub, Oceanic, Sherwood, Genesis, TUSA plus Healthways, Voit, Farallon, Tekna, Seatec all of which are no longer in business.
Today, I can meet the needs of our customers with 3 very diverse major brands and another couple of smaller ones. The advantage is that I can carry more stock, offer better pricing, keep more parts on hand, provide more professional service, have more knowledgeable staff and I have less problems with other store owners. All these advantages BTW are to the divers benefit!!
It seems you think the suppliers are evil! If Diversco is not selling to a dive store, it's almost certainly because the local dive community is already well served by a Diversco dealer. Why would they upset an established dealer and subsequently irritate the divers by giving a new dealer with no track record and dubious intentions their products? Who wins??
If we assume that both the manufacturer and the store owner plan to build a good, long-term business then most of the policies are beneficial to that aim and to the divers interest. It does not benefit the diver when either goes out of business.
I am an outspoken advocate of a free market and will not deal with suppliers who tell me how to run my business!! That certainly includes price restraints.
On the other hand I do want to protect my investment and, while I welcome and actually assist other store owners to open and get started even if close to me, I cannot allow their policies or problems to adversely affect me. Am I wrong??
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