In Response to "a Unified Dive Industry"

[RJP]

If competition is bad, why is there a Burger King within eyesight of McDonald's.

Good for the customers maybe, but not for the business:

Co-location is not about competition, per se. Pure logic from a population density standpoint: the best place for a McDonalds is also the best place for a Burger King. As long as there's enough people nearby a Wendy's and an Arby's will be there too. But to be sure, none of them is happy the others are there too.

 

[mdb]

I've already said too much!

No, RJP, You have not said too much, or given away the keys to the kingdom, you have been helpful.

This forum is important, It can mark a sea change for all of us who love diving. We are a very, very, small %. Any help we can get is much appreciated.

 

[Thalassamania]

Purchase decision-making is a largely irrational process; no one is immune!

No one is immune, some are better armored than others, being a competent biologist helps a great deal.

 

[RJP]

No one is immune, some are better armored than others, being a competent biologist helps a great deal.

Funny - that's where I started out. Undergraduate in biochem before coming over to the Dark-Side and going to B-school. Comes in useful for the pharmaceutical stuff! ("Hey, is that a fungus on your toenail?")

But seriously...some folks are not "ideal" targets because they are more rational decision makers than others. I suspect that a thoughtful guy like you fits the bill there. Just know that no matter what you think or what you buy, someone has you in their sights, and you're probably playing right into their hands!

 

[DaleC]

For those of us who who "are divers" it's not about the diving, it's about how we FEEL ABOUT BEING DIVERS.

Yes! Not to harp on my pet idea but there was incredable resistance to sport climbing in the beginning because it challenged the perceived notion of what a climber was. Trads were misfits, granola eating, hardcore beer swilling daredevils, living on the edge - even if they didn't climb that way. Along came a pimply 16 year old who could climb circles around them. It hurt... it really hurt :depressed:
A lot of the new breed didn't smoke, didn't drink, were clean cut, exercised... What did that say about the trad who was being left behind. There were many false arguments put forth about sport climbing and almost all (with the exception of the initial environmental degradation) were emotional.

The diving industry is and has been in trouble for a long time. It is why I got involved with DEMA back in the early 1990's. There was a demographic wall coming toward us the likes of which we had never seen before. During the baby boom generation, all one had to do was open a dive store and foot traffic was enough to keep it going. We, as an industry NEVER learned to compete with other activities. In the early days there was not much to choose from, now, bicycling, water bikes, four-wheeling, and on and on. Not to mention the drain of time/money on cable TV, internet, and video gaming. Discretionary dollars once spent on leisure activities outside the home are being sopped up by the modern age. Which of us, when you add it up, is not spending $200 or more per month on cable/internet/cell phone that didn't exist a generation ago.

That is an excellent paragraph.

Just know that no matter what you think or what you buy, someone has you in their sights, and you're probably playing right into their hands!

I remember a tour I took during Horticulture college of a high tech composting facility. We went into the packaging room and there were stacks of several name brand and generic potting soil bags. I asked what the difference was and the operator said "None. Some people will only buy generic and some people will only buy name brand but it's all the same stuff". I've never looked at the stuff in the supermarket the same way since.

Still a good thread. Amazing!

 

[mdb]

I remember a tour I took during Horticulture college of a high tech composting facility. We went into the packaging room and there were stacks of several name brand and generic potting soil bags. I asked what the difference was and the operator said "None. Some people will only buy generic and some people will only buy name brand but it's all the same stuff". I've never looked at the stuff in the supermarket the same way since.

Still a good thread. Amazing!

It is still a good thread.

For three college summers I worked a night shift unloading train cars at a major grocery chains warehouse. The cars would come in with one half the car with the
"name brand" ketchup, paper product, etc. the other half of the car would be the markets generic brand, same stuff, from the same source, some wanted Heinz and some wanted a better price.

 

[Sas]

If competition is bad, why is there a Burger King within eyesight of McDonald's.

Here our local supermarkets are Cub and Rainbow, again usually within sight of each other. Something else is driving the market!

Good for the customers maybe, but not for the business:

Co-location is not about competition, per se. Pure logic from a population density standpoint: the best place for a McDonalds is also the best place for a Burger King. As long as there's enough people nearby a Wendy's and an Arby's will be there too. But to be sure, none of them is happy the others are there too.

Well there is more to it than it just being the best place for it...

Think about two ice cream sellers on say, a 1km beach. Imagine one is located on one end and the other is located on the other. Just keeping things simple, this gives them access to 50% of the beach each - assuming people are going to go to the most convenient and beachgoers are evenly distributed along the beach. Say Icecream Seller 1 moves 200m in from the edge of the beach. Now this seller has access to 600m of people on the beach and Icecream Seller 2 only 400m. What will Seller 2 do? They'll move 300m in and this means they'll get 550m worth of customers and Seller 1 will be back to 450m. So this will go on until they meet in the middle. This is part of the reason why you get clusters of similar businesses together. There is an economic term for it but it completely escapes my mind.

Edit: Ok got it: Hotelling's law. (I knew it was Hotelling but kept searching for Hotelling's Lemma! )

 

[Thalassamania]

Funny - that's where I started out. Undergraduate in biochem before coming over to the Dark-Side and going to B-school. Comes in useful for the pharmaceutical stuff! ("Hey, is that a fungus on your toenail?")

But seriously...some folks are not "ideal" targets because they are more rational decision makers than others. I suspect that a thoughtful guy like you fits the bill there. Just know that no matter what you think or what you buy, someone has you in their sights, and you're probably playing right into their hands!

It also helps that I greatly limit my exposure to mass media, no TV commercials, little commercial radio, etc. And I live in a very rural area, an hour and a half away from either a Starbucks or an impulse purchase.

 

[gcbryan]

There's also more to it that that. Car dealerships are generally located near each other. No one buys a car just because on dealership is several hundred yards closer than the competition.

It's not that there is a great physical location to buy cars but if you are looking for cars it's easier to go to the location where they all are...the concept of the mall is another example.

Actually, it wouldn't be a bad idea from the consumers point of view for dive shops to do this.

It would quickly eliminate those that can't compete and yet in some ways it would be mutually beneficial. If one dive store doesn't have an item but the store across the street does it results in a happier customer and the dollars stayed local instead of ending up on the internet (not a bad thing either but not the result that a local business wants).

 

[offthewall1]

Lets reinvigorate this thread...

Here is my responjse to Tom Ingram and DEMA after receiving his email dated 10/26 (via email.)

"Tom,

Fact: DEMA is a complete joke and it's demise is forthcoming.

The show attendance this year will show you where DEMA is headed.

Let's try to fix the industry Tom instead of continually trying to rape it and stuff it in the ground.

The only way to do it is to dismantle DEMA as we know it and start new. A new name, headed by forward thinkers, who have the best interest of the industry at heart, not just their own wallets.

Cheers,

Ken Barrick, Owner
Off the Wall Scuba"