Local Dive Shops
- Thread starter 7milehi
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7milehi:
The problem with an LDS that goes the catalog route is that they are basically buying from the manufacturer at COD pricing, which means that the customer is paying more than they would from an LDS that has the same item in stock. Manufacturers give an LDS discounts based on their sales volume, which means that an LDS that moves more stock pays less and can pass that savings onto the customer. Part of the reason that an online LDS can sell for less is that they are dealing with more volume.
Any LDS that can't or won't stock merchandise and relies on catalog sales is going to become a victim of a self-fulfilling prophecy. They can't sell at the lowest prices, so they don't generate enough sales volume to be able to buy product from the manufacturer at the lowest price. Therefore, they have to charge the customer more, which means the customer will look elsewhere for the same product at a lower price. It is simply the rules and logic of the free-market system.
donnad
Contributor
AMEN PHIL!!!!!!!!! well said!!!!! i've only been diving two years and have "gone through" a couple of LDS's already who have not "wowed" me or have either outright treated me poorly. it's disappointing, cause it's not like there are a lot of them ya know? i'm down to two LDS choices now, and one of them doesn't really impress me, the one i think i like (haven't had enough experience with them yet, but they are impressing me so far), isn't an authorized dealer for my reg, so for annual maintenance i'd have to use the shop that i'm not crazy about (which i don't think i will do) or send my reg out to scubatoys from whom i purchased it........which is what i think i will do. so it does get frustrating. i really appreciate people who are good businessmen and treat their customers well. anyway, i really liked your post. AMEN
Swan1172:
It doesn't work like that. In general, a shop has to be a dealer for a given manufacturer in order for the manufacturer to sell anythgin to the shop. the shop/dealers pricing level is based on what they sell anually (or over whatever period of time the manufacturer uses to assess dealer level). Whether you make many small orders and have little inventory on hand or a few orders the price will be the same.
Phill made some good points but you have to pay attention to all of them. Inventory can be good but you must turn it. The faster you turn over your inventory the less money you have tied up where you can't get it...ie, the longer inventory sits on the shelf the lower the profit when you sell it because it's really money that sat on the shelf and it didn't earn any returns while it sat there. You don't invest money by sticking it in a hole in the backyard do you?
OkieDiver:
cynical? cynical >adjective 1 tending not to believe in the integrity or sincerity of others. 2 skeptical. 3 contemptuous; mocking. 4 concerned only with one's own interests.
Maybe but I don't think that's a good description.
MikeFerrara:
LOL. I bought a BC for "pool work" (yeah I know.....) and the damn thing kept leaking out of the top of the inflator. Later on I figured out the O-ring was gone. Maybe someone pulled it out for a missing one on another bc? I never bought into all the bull****. I now DM in my BP/W whether or not anyone cares. And I'm asked to help out so I must be doing something right, besides "working" for free. Actually they treat me very well. I don't do it for money and it does not cost me anything. If I was independently wealthy I'd open a shop and do it my way, but I'm not
caseybird
Contributor
MikeFerrara:
Oh, Mike,
I was talking about the guys who do go to the shop, want to try it on and walk out to order online. We both know there's plenty of that.
So bitter about the dive industry. Maybe the best cure for that is salt water, generously applied.
Mike's allright. He just likes to ***** like we all do from time to time LOL
deepdiver4
Guest
well sometimes you would be a fool not to buy online.. some stores will mark the price so high or if they know you will spend the money in their store they will give you a better price so you migth think and then you buy .. then you talk to your dive bud and he tells you he bought the same thing @ the same store and got it cheeper ..thats why i will not shop @ the store i did all my buiness with sorry about their luck and outhers will find out the hard way and they will do the same ..///store in tampa\\\\
The following information is based on a Market Distribution study recently completed by Leisure Trends, the ONLY organization in the United States that attempts to accurately track RETAIL sales in the scuba industry..........
In 2005 ALL scuba sales (equipment, travel, and training) in the United States totaled $726 million dollars.......of this total, the dive specialty stores (your LDC), which also includes local dive stores that also operate online stores, accounted for $552 million, or 76% of that total. (to put this in perspective, 12 really busy Wal Mart stores in your state will have combined sales that EXCEED the retail sales of the entire scuba industry in the United States)
There are 1281 diving speciality stores (local dive stores) in the United States (not the 2000 figure generally quoted by the dive manufacturers). Of that total number of stores, 721 of them accounted for 80% of all scuba sales! That only leaves $110 million in sales to be divided between the other 560 local scuba stores! Of those 560 stores, 297 of them have a total combined total scuba sales of only $15 million. That's an average of only a little more than $50,000 per store. With sales figures like this, how long do you think these stores will last?
Unless something drastic happens, you are going to see LOTS and LOTS of local scuba stores going down the drain in the next few years. To survive, these stores need to develop a comprehensive plan to greatly improve sales and they need to develop this plan FAST! The days of operating a retail scuba specialty store "just because you love it" are over. I didn't say it was coming to an end eventually. I said OVER! Unfortunatly, many dive stores are done for and don't even know it. They are just hanging on by their finger nails. The next recession, or terrorist attack, or rash of hurricaines, or whatever is the next conditions that cuts into scuba sales..........will cause stores to collapse all over the country.
So, if you operate a local scuba store, are you willing to just sit around and wait? Do you REALLY think the "choose it and I will order it for list price" model will work? Do really think you can "provide better service" your way to success?
EVERY educated economist, accountant, and consumer KNOWS that the secret to increasing market is lowering price so participation in the activity grows. We all learned that in elementary economics. The high entry price of our sport, fed by stores that REFUSE to understand the importance of price competition, is killing participation in the sport.
Prediction: All of the major scuba companies, all of the training agencies will go crazy disputing these statistics established by Leisure Trends. Of course, they will do so without A SINGLE VALIDATED STATISTIC of their own. They will just dispute it because they can. You think this attitude helps the scuba stores? Not a chance! Lies are what have been killing the local store for the past 15 years. Further lies will just further continue to do damage. What was the verse in that 70's song? "killing me softly with your words, killing me softly with your song.......killing me softly"
Anyway, just my Saturday morning opinion. Thanks.
Phil Ellis
In 2005 ALL scuba sales (equipment, travel, and training) in the United States totaled $726 million dollars.......of this total, the dive specialty stores (your LDC), which also includes local dive stores that also operate online stores, accounted for $552 million, or 76% of that total. (to put this in perspective, 12 really busy Wal Mart stores in your state will have combined sales that EXCEED the retail sales of the entire scuba industry in the United States)
There are 1281 diving speciality stores (local dive stores) in the United States (not the 2000 figure generally quoted by the dive manufacturers). Of that total number of stores, 721 of them accounted for 80% of all scuba sales! That only leaves $110 million in sales to be divided between the other 560 local scuba stores! Of those 560 stores, 297 of them have a total combined total scuba sales of only $15 million. That's an average of only a little more than $50,000 per store. With sales figures like this, how long do you think these stores will last?
Unless something drastic happens, you are going to see LOTS and LOTS of local scuba stores going down the drain in the next few years. To survive, these stores need to develop a comprehensive plan to greatly improve sales and they need to develop this plan FAST! The days of operating a retail scuba specialty store "just because you love it" are over. I didn't say it was coming to an end eventually. I said OVER! Unfortunatly, many dive stores are done for and don't even know it. They are just hanging on by their finger nails. The next recession, or terrorist attack, or rash of hurricaines, or whatever is the next conditions that cuts into scuba sales..........will cause stores to collapse all over the country.
So, if you operate a local scuba store, are you willing to just sit around and wait? Do you REALLY think the "choose it and I will order it for list price" model will work? Do really think you can "provide better service" your way to success?
EVERY educated economist, accountant, and consumer KNOWS that the secret to increasing market is lowering price so participation in the activity grows. We all learned that in elementary economics. The high entry price of our sport, fed by stores that REFUSE to understand the importance of price competition, is killing participation in the sport.
Prediction: All of the major scuba companies, all of the training agencies will go crazy disputing these statistics established by Leisure Trends. Of course, they will do so without A SINGLE VALIDATED STATISTIC of their own. They will just dispute it because they can. You think this attitude helps the scuba stores? Not a chance! Lies are what have been killing the local store for the past 15 years. Further lies will just further continue to do damage. What was the verse in that 70's song? "killing me softly with your words, killing me softly with your song.......killing me softly"
Anyway, just my Saturday morning opinion. Thanks.
Phil Ellis
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