How do companies sell their gear to stores?

[lowviz]

...//... Do companies sell direct to scuba shops and online retailers or are there some large resellers or manufacturer reps? ...//...

You may also want to school yourself on the inner workings of the "gray market", very likely that this will be your real competition.

 

[beaverdivers]

I'm coming from the angle of me being the sales/manufacturer's rep as I've been in sales my entire career. I'd like to get into the industry some way and sales was something I was pondering. I'm in the Dallas/Fort Worth area and didn't want to have to move to be in the corporate office of the manufacturer so I thought if they had territory sales reps, that might be a fit.

The major players in the SCUBA biz have sales reps. IMO, an excellent sales rep is worth their weight in gold.

You could work out of the DFW area. Good luck!

 

[RJP]

With brands like Scubapro there is also some kind of agreement that you will only carry their brand and you will push certain amount of sale to continue being a dealer. This is the vibe that I have gotten. I do not know if I have understood this correctly.

My local SP dealer also sells AquaLung, Atomic, DiveRite, Halcyon, Mares, Sherwood, Oceanic, Cressi, and Hollis... so I'm guessing your understanding is incorrect.

 

[KevinNM]

There are side deals a dive shop can set up. I know my LDS has a deal with aqualung that their instructors will only wear aqualung companies equipment when teaching. They are not absolute on this, the rep has can and has made exceptions, but in general they wear all aqualung gear. I don't know what the dive shop gets out of this, but they get something.

 

[blueorbdiving]

To "break into" the new scuba gear dive sales world you have to own and operate a FULL SERVICE dive shop. I spent a long time pouring thru manufacturer contacts trying to gain authorized sales/dealerships to big brands. NO DICE. Scubapro, for example (on top of owning a full service dive shop) requires a 2inch thick contract and a $10,000.00 initial "good faith" purchase. This is the case with most of them. I have gotten lesser known or foreign manufacturers to work with me, but I don't get the low pre-sale price the dive shops do. And then there is marketing. To compete with huge dive shops with huge online sales, like leisurepro.com or Joediver.com, you have to spend a fortune...which is a joke because you can't compete by selling new high end brands. And, then there is the warranty issue. No authorized dealership, no warranty. The "dive industry players" (is like the golf industry I grew up with) is very carefully managing the marketing and sales aspects to protect and promote their brands, and make it real hard on competition. Little guys like me (blueorbdiving.com) have to go at it sideways and work much harder, and still can't make a living.

The dive shop gets below MAP pricing, which is 1/2 of what they sell for - it is called "keystone" the MSRP (double the price they paid for it). The shop makes very little money off classes, fills, repairs. They make the money on the NEW STUDENTS who now need NEW GEAR. They invest in the classes to snag the student, then convince him he needs new gear (not used). The shop professionals/instructors/assists grind into the customer heads on customer and dive shop loyalty...viola! The dive shop and manufacturers own the industry. Good luck to you, it is a battle!
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"Be the sea"

 

[ams511]

My local SP dealer also sells AquaLung, Atomic, DiveRite, Halcyon, Mares, Sherwood, Oceanic, Cressi, and Hollis... so I'm guessing your understanding is incorrect.

His understanding is correct, Chris from Silent World basically said the same thing on an old Deco Stop post regarding minimum purchases and a minimum yearly sales volume in order to keep the dealership. That is one of the reasons why Leisurepro can get inventory when they are not an authorized dealer. Small shops sell to them just to keep their dealership agreement. As far as caring only one manufacturers line you are correct there is no prohibition against it, but I believe they offer incentives for a shop to only carry their line.

 

[SubAquatix]

You'll notice the answers are all over the board as far as what is a rule and what might be. So much of it has to do with region, anticipated sales, and your local competition.

If a shop has no competition and a desirable location, a manufacturer might place $5000 worth of stock on consignment over 180days. in another region, an LDS could spend so much with a manufacturer, that he demands the manufacturer give him a 50mile no compete zone.

Other challenges are in the way you have to purchase. Zeagle, Atomic, Bare and Liquivision are now all owned by Huish. If you were a Zeagle dealer, you are now pressured to become a dealer for the other products was well, even though you may have competitive product in place. Still even crazier is the sales model. Some manufacturers have direct sales reps, some farm it our to regional sales groups. It can be very nepotistic, to say the least!!

 

[KevinNM]

Based on the three Bare dry suits I and the two lead instructors at my LDS bought over the summer, things are getting ugly in Huish-land.

 

[ams511]

Another factor could be how close the rep is to the sales amount needed for his/her bonus. My experience in other industries is if the period end is close and the rep is under the bonus amount then it is deal city. If the rep is over then deals are harder to come by.

 

[KevinNM]

Another factor could be how close the rep is to the sales amount needed for his/her bonus. My experience in other industries is if the period end is close and the rep is under the bonus amount then it is deal city. If the rep is over then deals are harder to come by.

July is the last month of the Cisco System fiscal year. Often a very good time to be buying a lot of gear from them.