online scuba sales

[diveprof]

There is a new thing settling into scuba retail - COMPETITION. In stead of jacking up prices to ridiculous levels, it may be time to look for efficiencies rather than schemes and scams.

As a consumer, I like the overall direction things seem to be taking. Time for survival of the fittest.

There may be downsides for the consumer as well. You may have to drive an hour or two for an air fill when the local dive shop goes out of business (or have to buy a compressor).

 

[jaycanwk]

There may be downsides for the consumer as well. You may have to drive an hour or two for an air fill when the local dive shop goes out of business (or have to buy a compressor).

Maybe. Maybe not. Lets say I own a sporting goods store and that all the LDS's in the area finally go bankrupt. If there is still a large local demand for air fills, then it would be nothing for me to buy one of their compressors for pennies on the dollar at their bankruptcy sale and stick it in a corner of my store and sell air.

 

[oly5050user]

Maybe. Maybe not. Lets say I own a sporting goods store and the all the LDS's in the area finally go bankrupt. If there is still a large local demand for air fills, then it would be nothing for me to buy one of their compressors for pennies on the dollar at their bankruptcy sale and stick it in a corner of my store and sell air.

Usually no money in it. Decent compressor/bank/fill panel would still be a sizable investment.The sporting good store would have to still pay for electric/filters..etc...
have to pay someone to actual fill tanks, pay for insurance-if they can get it.By the time all said and done they will not make any money at it unless they charge enough to pay for itself..I can see air fills costing $15.-$20.. just to fill a itty bitty paintball tank we charge $5. and they are happy to be able to get it for that price.

 

[jaycanwk]

Usually no money in it. Decent compressor/bank/fill panel would still be a sizable investment.The sporting good store would have to still pay for electric/filters..etc...
have to pay someone to actual fill tanks, pay for insurance-if they can get it.By the time all said and done they will not make any money at it unless they charge enough to pay for itself..I can see air fills costing $15.-$20.. just to fill a itty bitty paintball tank we charge $5. and they are happy to be able to get it for that price.

You are correct, and I should have added that $15 - $20 air fills may be the result of that scenario, but it is still economics 101 that says ".....where there is a demand, there will be a supply....... and at a price that the market will bear......"

I agree that that compressor would still have additional costs associated with it, and I do admit i don't actually know what the true costs of running a compressor are, but those costs to the sporting good store would be, I think, a more marginal increase in that they are already paying staff and would only need to make a bit of an investment in training that existing staff on using it which could come from the money saved from buying the compressor cheaply for pennies on the dollar at the bankruptcy sale in the first place. I don't know how much more electricity it would use, but the point is that I think don't think it would be unworkable and you have to consider that added benefit of having that extra customer traffic through your store. Imagine that scuba diver coming in for his tank fill, notices the sale your having on bikes and buys one for their kid.

 

[gsk3]

I suspect that a coop system would be more likely given the liability issues involved with commercial fills.

 

[mathauck0814]

I suspect that a coop system would be more likely given the liability issues involved with commercial fills.

Agreed - in an area with any diver density you'll just end up with the guy who has a garage housing the dive club/group's shiny new fill station.

I don't fear the death of the LDS.

 

[jaycanwk]

I don't fear the death of the LDS.

I don't either. Or, more specifically, I don't fear a changing business model for the scuba industry.

 

[thirdcoastdiver]

You are correct, and I should have added that $15 - $20 air fills may be the result of that scenario, but it is still economics 101 that says ".....where there is a demand, there will be a supply....... and at a price that the market will bear......"

I agree that that compressor would still have additional costs associated with it, and I do admit i don't actually know what the true costs of running a compressor are, but those costs to the sporting good store would be, I think, a more marginal increase in that they are already paying staff and would only need to make a bit of an investment in training that existing staff on using it which could come from the money saved from buying the compressor cheaply for pennies on the dollar at the bankruptcy sale in the first place. I don't know how much more electricity it would use, but the point is that I think don't think it would be unworkable and you have to consider that added benefit of having that extra customer traffic through your store. Imagine that scuba diver coming in for his tank fill, notices the sale your having on bikes and buys one for their kid.

Remember that retail businesses look at sales per sq. ft. of space. In addition to all of the other costs discussed is the use of floor space that has to produce enough income to pay for the lease/mortgage costs each month. My LDS is extremely reasonable and may even be using the air fills as a loss leader....I always spend far more on equipment, than I do on air fills each year.

 

[Norberto]

I sold my first diveshop to the biggest Yamaha dealer in town. Since he had big building for his engines, boats and ski-doo as well as trained staff, he thought it would be great addition to his business. He closed dive shop within first two years after I sold it to him. My point is it always looks easy on the outside. While you all wish us ill, I hope you keep your jobs in 2012.

Cheers
Norbert Pietkiewicz, proud owner of Learn to scuba dive at AquaSub Scuba Diving Centre located in Richmond Hill, Ontario PADI 5 Star IDC facility your one stop dive shop

 

[oly5050user]

I don't either. Or, more specifically, I don't fear a changing business model for the scuba industry.

Nothing to fear, unless it is your job that is lost.
Simple fact is fewer LDS around less new people getting into activity as it will not be as visible to them.Less new people in activity means less demand for gear.Less demand for gear creates higher cost for gear that is available..