The future of LDSs? (in America anyway)

[latitude]

This has me thinking...my day job is a magazine journalist. I cover the auto parts business, and many of the same problems faced by small LDS are also faced by the small indy auto parts stores.

Or the small hardware stores cometing against Lowes and Home Depot.

Or the small full-serve gas station from the 70's competing against that new self-serve c-store down the street.

Or the small grocery store competing against the big supermarket chain.

Or the small-town store competing against WalMart.

etc...

etc...

etc...


I think Americans are becoming more and more thrifty with their spending (that's what makes these bigger, high-volume, stores successful. You are losing something however by paying the lower prices... Remember when you could get gas without getting out of your car? Remeber when you could get your tires topped off without having to dig through your ashtray for a couple quarters? The guy would even clean your winshield and check your oil for you for "free" (I realize you're paying for this with the higher costs). Remember when you could talk to a guy about which hammer or whatchamicallit would be best for your use and the guy acutally KNEW what he was talking about (Instead of it's on aisle 328 sir).

If that's what the customer wants, that's what the customer's going to get. The good consumer will do their homework and know what they want/need, know how to check their own oir, clean their own winshield, and save a few cents per gallon by pumping their own gas.

Is this what we want from the SCUBA industry? (not like we have much of a choice - I realize the direction things are going) The experienced diver and educated conusmer would say yes. I for one would gladly insert my credit card at the local "self-serve" air-fill station if it were available. Some of the manufactures are trying to keep the little guy shop in business (Aqualung's warranty policy comes to mind) just like some of the states/towns have tried to keep the small shops in business (ever wonder why it's illegal to pump your own gas in the state of New Jersey?).

I agree, the shift is going to happen... The consumers just need to be ready to have less services available to them.

Sorry for the long winded reply... Just my thoughts...

 

[android]

Rich, nice post. Now the only thing left to deal with is me.

I own the apple orchard and decide to sell online. I can still undercut you because I still get my profit and I can take 1/2 of yours and still sell for less than you. My expenses for my online apple shop are the same as yours. I can track my customers and offer specials to my best customers if I have an excess of apples or I am expecting bad weather next week.

The full cycle of the the internet will be the return of more commerce directly between producer and consumer without the middleman.

 

[Lead_carrier]

I think the small LDS is going to be going by the wayside in the near future. I think both the internet and cut-throat business practices by larger shops will wipe out the mom and pop shops before long. Will some of the smaller shops band together? Probably not, for a couple of reasons.

1. The equipment manufacturers will do all they can to keep them separated. I have seen this first hand. One rep will call on the different shops, threaten shop X with pulling their equipment lines if they don't sell more of his brand. Then go to the shop Z, give them sweet deals and telling them ways that they can undercut shop X, telling Z that it won't be long we'll have him gone.

2. Agencies get more money if they have more shops. They will knowingly allow unethical practices go on as long as they get their yearly dues and payment for each student.

3. Unfortunately, more crooks are growing in the business and see to be prospering with it. The day of the super honest diver is going down hill fast. Fortunately, the largest majority is still above board and very honest. It's the bad apple that is making it bad for everyone else.

I could rant more but I think the ones that have been around have seen this and a lot more. It is making me think more and more about buying my own compressor and stock piling some extra parts.

 

[simbrooks]

I agree with the above summary of how corporate America (and the world following suit oftentimes) is squeezing out the little guy in all sorts of different fields. I dont know if LDS's will survive, but they do offer some useful stuff such as the ability to try on and discuss (of course are they being honest or just pushing their brand?) rather than just order online (this assumes you know what you want already), of course the larger chain stores such as the popular one in SoCal have the best of both worlds.

One idea that came up (shoot it down if you like) whilst going through this thread is whether an LDS could survive on fees and teaching alone, ie not on sales of equipment. They provide the usual services - teaching (maybe a nice onsite pool), gas, rentals (maybe), advice (unbiased as they dont sell stuff), trips, servicing (not sure how that might work if you arent affiliated with a dealer for parts, but i digress) and that kind of stuff. They dont have lots of cash tied up in inventory or sales targets to meet, its the personal touches that get them the customers, leave the cut-throat sales to online, direct from manufacturer or large chain store. Essentially you are a shop front with services but not gear. I have seen this working quite well with Fill Express, cheap gas, great services, i know they do some sales, but there is only a tiny shop front and they mix in the Dive Rite sales with online, but even so, they seem to be making it as a small store - now would that be different without the sales i guess they would need less space for the warehouse part out back. Just a thought, do you guys think this business model would work?

 

[captain]

I know of a hardware store Texas that is located across the street from Home Depot and Home Depot has not hurt it a bit. Why, because they specialize in hardware Home Depot doesn't sell plus what Home Depot does sell. Their prices for hardware Home Depot sells is the same, but if I go to get something Home Depot doesn't have and I also need something Home Depot does have and the price is the same I'll buy it all in one place rather than making another stop at Home Depot. Scuba is specialty sporting goods, sell it along with other more common sporting goods. I might need a new regulator and my son might need a new football. If the price for the football is the same as Wal Mart why would I make a second stop. Let PADI itself open training facilities with the pool to sell it training seperate from equiptment sales.

 

[Hoosier]

Definitely, the small shop will be gone out. The big chain store will be prevailed in the market, such as Dick’s Sports and MC Sports. And, the remaining small shops will ally against a big chain with keeping their ownership, for example, World Water Sports. In that case, they are able to utilize their inventory and product circulation. In addition, there will be a definite distinction between the teaching and sale. Like a golf lesson, there is no obligation, force or threat to buy the gear at the certain LDS. Of course, some shops that adopted a changing market trend and specialized their service and gear selection will survive like Larry at @ Scubatoys.

The gear price should be fallen down dramatically for many potential divers. The more diving population we have, the better diving environment we can have. And, every local dive site will equip with the air refill station to meet the divers’ demands.
So, there will be no more air refill threat from the stupid LDS.

Otherwise, this sport is only for a certain group of people. We always need to pay a high price for the scuba gear and a diving trip.

 

[Rick Murchison]

Rich, nice post. Now the only thing left to deal with is me.

I own the apple orchard and decide to sell online. I can still undercut you because I still get my profit and I can take 1/2 of yours and still sell for less than you. My expenses for my online apple shop are the same as yours. I can track my customers and offer specials to my best customers if I have an excess of apples or I am expecting bad weather next week.

The full cycle of the the internet will be the return of more commerce directly between producer and consumer without the middleman.

Sometimes...
The internet broker (for that's essentially what I'd be in my example) has the advantage of a yearlong supply of a large variety - and most folks will pay a little (but not a lot) more for any given item when they can save time and effort by going to a single source to reliably find what they want, when they want it.
From the orchard owner's viewpoint, if a single broker will reliably buy the entire crop, I'm willing to sell to him for a bit less than if I have to go out and recruit and deal with a whole bunch of customers. Especially if I've had to deal with "end users" in the past.
Rick

 

[mstevens]

As an interim measure we'll see more "reimbursible" services. That is, trying out a BC in the pool will cost you $20, but that comes off the price if you buy.

I think that's an idea with legs. I'd gladly pay for tryouts, and if the fee came off of the purchase price nobody would be in a position to complain.

 

[mxracer19]

The sale of gear will never be absorbed into major sporting goods stores for the sole purpose that there arent very many divers per percentage, as well as the fact that Most people might consider diving slightly dangerous and very expensive. The best thing for the diver would be if dive shops became competetive with one another. This would lead to lower prices, more competant instructors, and dive shops that would do more for the customer. In addition to this, if all dive shops started selling via the internet to broaden sales and expand horizons, more of the dive community would be contacted and convience would be increased. Diving will never become 'commercialized' because diving requires prior planning and training. These are things that most people would rather not deal with.

As a general trend, I think what we'll see in the coming decades is an ever-growing population of solo divers as training and equipment reliability increases with technology. As media on the internet involving diving procedure and online training increases, I think the population will begin to sway into more of a self-taught self-learned trend as it once was. There will always be people taking classes because there are many people that enjoy a class that they can touch and feel and participate in(I am one), however I feel that an attitude of "train publically or die" will begin to phase out as outside influences creep in.


my .02

-Matt

 

[mxracer19]

EVENTUALLY...One store will sell EVERYTHING, much like the company store...except this will be The US Government. They will buy out everything. Since you have to buy everything through them, they can deny you that right if you break the law. They will take all of your freedoms, and do whatever they want because a) weve let them and b)if you don't listen to them, you won't have anything. And the world won't stop them because they'll be paying the entire world off. The only way to live free will be to join the government. 1984 isn't a book people..its a prophecy.

...and dive shops are only the beginning.


-Matt(Future world leader and business tycoon)