question on profit margins

[Rick Inman]

Rick Inman once bubbled...
As a customer, who cares?? What I care about is VALUE. Best price / service/ quality / warantee, etc. I don't care if you mark it up 1% or 1000% if I am getin a good deal. In fact, as the customer, it's really none of my business what YOU paid for it. My business is what I pay for it.
The market determins markup, and if an LDS isn't a good business person, he/she will soon be history.
Before you bought the computer you're reading this on, did you think about the markup on it, or just the cost/value?

Northeastwrecks once bubbled...
Quite simply, I don't care what the profit margin is for an LDS.

I care about what I pay for the gear. If I believe that I'm getting value for my money, then I really don't care if its 1000%.

A reasonable profit is whatever the market will bear, customer by customer.

Good point, NED!

You and I basicly said the exact same thing. But we are looking at this issue from the customer's point of view, and these LDS owners are myopicly stuck on their own point of view.
Gee, I wonder why the customers are not standing in line...

 

[Northeastwrecks]

Rick:

We did post almost the same thing. However, we may be coming at it a little differently.

I'm perfectly happy to pay more for my gear from the LDS that I use because I receive huge intangible benefits, including free fills, discounts, great service and excellent advice. If we want a particular manufacturer, the LDS gets it for us.

For that reason, I'm happy to pay more for the gear. I don't nickel and dime my LDS and he doesn't do it to me.

 

[Big-t-2538]

Northeastwrecks once bubbled...

I'm perfectly happy to pay more for my gear from the LDS that I use because I receive huge intangible benefits, including free fills, discounts, great service and excellent advice. If we want a particular manufacturer, the LDS gets it for us.

We need a shop like that in Dayton OH...they currently push the "2003 or 2004" model of gear....tell me I need this nifty 750 nitrox integrated computer....try to sell me a 2500$ trip to the caymans........

or we have the other extreme...."oh you want Nitrox....yeah, I think we can get that, just drop your tanks off later, and we'll get 'em filled and analyzed for ya by next weekend"

 

[CincyBengalsFan]

Big-t-2538 once bubbled...

or we have the other extreme...."oh you want Nitrox....yeah, I think we can get that, just drop your tanks off later, and we'll get 'em filled and analyzed for ya by next weekend"

UHHHH, please tell me that you analyze the tanks yourself at least once before the tanks leave the shop?

 

[Big-t-2538]

CincyBengalsFan once bubbled...


UHHHH, please tell me that you analyze the tanks yourself at least once before the tanks leave the shop?

That was kind of the point....the shop didn't seem to care if I analyzed them at all....frankly...if I was filling someone's Nitrox tank....I'd want to make damn sure they knew what was in it before they left my shop and signed my fill-station log.

 

[CincyBengalsFan]

Big-t-2538 once bubbled...
That was kind of the point....the shop didn't seem to care if I analyzed them at all....frankly...if I was filling someone's Nitrox tank....I'd want to make damn sure they knew what was in it before they left my shop and signed my fill-station log.

They won't be around long.

 

[MikeFerrara]

SOP is to have them analyze it or at least witness it and fill in the fill log. That way you have documentation that they knew what they were getting and what depths it's good for.

 

[Rick Inman]

Northeastwrecks once bubbled...
Rick:

We did post almost the same thing. However, we may be coming at it a little differently.

I'm perfectly happy to pay more for my gear from the LDS that I use because I receive huge intangible benefits, including free fills, discounts, great service and excellent advice. If we want a particular manufacturer, the LDS gets it for us.

For that reason, I'm happy to pay more for the gear. I don't nickel and dime my LDS and he doesn't do it to me.

Yes, I agree! I also pay more to my LDS. That is what I mean by VALUE. You just said it better.

 

[lobstermobster]

Scuba isnt something that most of us have to do. Its something we want to do. Most of the divers who dive alot have money and dont mind spending more at a local dive shop. Let me ask you dive shop owners this. When you open a shop do you think your going to make big profits or do you open a shop because it something you love doing. The reason im asking is thier are five dive shops with in 20 minutes of my home. The funny thing is that i takes two hours to get to a desent place to dive. I cant see how thier could be enough divers for all of these stores to do well. It seem to me they would have to make way over 57% profit margin to stay in business. One thing that realy gets me going is when you here about a diver that takes a class somewhere and then buys all of thier gear online or someone that buys from a nother shop to save a few bucks. When i need something from my dive shop i dont even ask the price, i know that im not getting the cheapest price but i allso know i wont get ripped off. Good luck to all you dive shop owners.