Lost Yooper
Guest
Good points. They're between a rock and a hard place.
Such is life, I guess.
Mike
Such is life, I guess.
Mike
Fair prices
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ScubaDuke
Guest
Howdy all,
I don't know this for sure but I believe that some manf/brands set a minimum price that an LDS has to charge. If they sell below this thier dealership for that product or brand can be canceled.
My industry has such limits and unless you are willing to buy in massive quanities and not have any support (warranties, parts, etc.) you have to follow thier rules.
Am I wrong? Can anyone verify?
I don't know this for sure but I believe that some manf/brands set a minimum price that an LDS has to charge. If they sell below this thier dealership for that product or brand can be canceled.
My industry has such limits and unless you are willing to buy in massive quanities and not have any support (warranties, parts, etc.) you have to follow thier rules.
Am I wrong? Can anyone verify?
F
Ferrara
Guest
My Wife who handles details like supplier contracts, ordering and pricing inventory for our shop tells me that some manufacturers DO make us agree to minimum prices. Zeagle, Halcyon, and Cressi Sub are three that do. Zeagle and Cressi also make us agree to instore sales only. We assemble and test each piece per manufacturers specs. Not that it is rocket science but not everyone would know how and it should be done.
I am a great fan of diving and would like to see this sport continue to grow. But, I am often confused by this industry.
Why isn't anyone concerned that services and training is provided at a loss by dive shops/centers? Why is OK for equipment manufacturers to impose a 100% markup on gear to LDS's? Why is it not OK for diving organizations to charge training fees to students that would allow instructors providing training to earn a living?
If a shop needs to charge $10 a tank (instead of $3) to operate and maintain a compressor and turn up enough of a profit to make it worth while, the shop should be able to. If dive centers need to charge students $300 for C-card training (instead of $200) they should be able to. These are services that can only be provided by local dive shop/centers, and these business should be allowed to charge prices that divers are willing to bear.
But, it does not make sense to me to have to pay $1000 for a piece of equipment that cost the shop only $450.00 to stock, so they can continue to lose money on services and training. . .
Why isn't anyone concerned that services and training is provided at a loss by dive shops/centers? Why is OK for equipment manufacturers to impose a 100% markup on gear to LDS's? Why is it not OK for diving organizations to charge training fees to students that would allow instructors providing training to earn a living?
If a shop needs to charge $10 a tank (instead of $3) to operate and maintain a compressor and turn up enough of a profit to make it worth while, the shop should be able to. If dive centers need to charge students $300 for C-card training (instead of $200) they should be able to. These are services that can only be provided by local dive shop/centers, and these business should be allowed to charge prices that divers are willing to bear.
But, it does not make sense to me to have to pay $1000 for a piece of equipment that cost the shop only $450.00 to stock, so they can continue to lose money on services and training. . .
cybordolphin
Guest
I do think there is an answer. Probably somewhere in charging more for training. In the end it may well be a wash.... for the customer.... they won't really be saving anything. Just pay more for training.
But for now the customer is saving on equipment and getting a steal on the training. All at the expense of the LDS's.
I think once again there is a solution that will change the industry forever... just give me a minute.
But for now the customer is saving on equipment and getting a steal on the training. All at the expense of the LDS's.
I think once again there is a solution that will change the industry forever... just give me a minute.
NAUTICAL NOBLE
Guest
This is true....not on every product but on most of them.Originally posted by ScubaDuke
Howdy all,
I don't know this for sure but I believe that some manf/brands set a minimum price that an LDS has to charge. If they sell below this thier dealership for that product or brand can be canceled.
My industry has such limits and unless you are willing to buy in massive quanities and not have any support (warranties, parts, etc.) you have to follow thier rules.
Am I wrong? Can anyone verify?
hargettdds
Guest
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First let me say that I like everyone at my LDS very much. I enjoy diving with them anytime I can. They are just plain great folks. However, even though my career allows me a bit of financial excesses from time to time, I still shop smartly. My son and wife are also certified which means three sets of everything! I only buy what I consider top of the line, i.e. most expensive ( most of the time). I buy what I can from the lds, ie everything needing direct sales for warranties first of all, and everytning else that isnt over 30% higher than the best online price. I understand their delimma however it is of their own doing. By that I mean that this disparity did not happen over night. I give them first crack at matching to the best of their ability the online prices that I find. I do not hide the fact that I shop online. I also spent anywhere from 150 to 200 every trip through the shop during the season. I believe that if the service as a whole was charged as it should be then equipment could be as it should be. But some one long ago made a financial decision to cut prices to get people through the doors then try and make it up in the showroom. A standard "hook" type practice. One LDS cannot address this by themselves or else they will be out in the cold. Could you immagine raising your prices of trainning and service 75% while everyone else remained the same. You would die. But lets face it "Sam's Clubs" are comming! Adapt or you may die anyway! I encourage my shop to develope a website to keep up with the Jones' and then advertise the reasons they charge more for service. I dont know..... Just been brainstorming here.....Trying to figure out how to help these people I like so much with out going broke doing it. What good is alot of great gear if you cant afford to go anywhere and use it.
SaltyWhale
Contributor
Hi Ferrara
I am not too sure if this is the thread to offer suggestion on LDS but I will shoot it anyway.
The day the internet was invented, it has created a borderless business arena to most industries. Needless to say, the diving retail industry is one that is affected greatly.
However, there are certain revenues that you might want to increase your attention on. You might be facing the lost of retail but I am sure your revenue on equipment servicing will more likely increase as there are more equipment owners.
During the days when I was operating a LDS, I would usually offer my clients free equipment servicing up to 2 years or more. Should they bring in any equipment that is not purchased from us for servicing, we would charge them accordingly (at a higher rate). Which is fair I believe. As the online sale foresees that they will not be responsible for servicing, they can afford to drop their margins.
Should a smart buyer realize, after taking off the service charges of 2 years or more, purchasing from a LDS would be a better deal.
Unless the individual is capable of servicing his/her own set, which then again they will face difficulties on claims for free parts from manufacturers.
Here is a point online buyers might want to look into. There are some brands of equipment that does have parts warranted for a couple of years or some for even lifetime. But in order to obtain it, you will have to go back to the LDS that holds your warranties for it. I don't think the online service offers these advantages.
Hope this info could be of help to those LDS who face problems of such.
Cheers.
I am not too sure if this is the thread to offer suggestion on LDS but I will shoot it anyway.
The day the internet was invented, it has created a borderless business arena to most industries. Needless to say, the diving retail industry is one that is affected greatly.
However, there are certain revenues that you might want to increase your attention on. You might be facing the lost of retail but I am sure your revenue on equipment servicing will more likely increase as there are more equipment owners.
During the days when I was operating a LDS, I would usually offer my clients free equipment servicing up to 2 years or more. Should they bring in any equipment that is not purchased from us for servicing, we would charge them accordingly (at a higher rate). Which is fair I believe. As the online sale foresees that they will not be responsible for servicing, they can afford to drop their margins.
Should a smart buyer realize, after taking off the service charges of 2 years or more, purchasing from a LDS would be a better deal.
Unless the individual is capable of servicing his/her own set, which then again they will face difficulties on claims for free parts from manufacturers.
Here is a point online buyers might want to look into. There are some brands of equipment that does have parts warranted for a couple of years or some for even lifetime. But in order to obtain it, you will have to go back to the LDS that holds your warranties for it. I don't think the online service offers these advantages.
Hope this info could be of help to those LDS who face problems of such.
Cheers.
F
Ferrara
Guest
The responses in this thread indicate a greater understanding of this industry (by at least part of the dive public) than I expected or have seen evidence of in the past. This is encouraging. The industry will change as all do. Your ideas are well thought out and appreciated.
budgy:
Hi again Budgy, I know an lds down in Wales called Days Diving (also known as Days Divesified Sevices) 01792 579777. they will charge p&p but Ive found their prices so reasonable in the past that I reckon for expensive stuff it's still worth getting if you're not local to the store. i tend to get my gea there when I'm down that way with work.
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