FWIW, here are some of my observations that have been made into broad industry generalizations.....obviously there are exceptions to these....
1) Why do LDS 'accept' MFGrs 'abuse'? They have little to no choice. In the industry, most of the power resides with the MFGrs...The scuba market is small and there is little buying power a typical shop (with annual rev of $500k-$1M) can exert. Typically equipment sales generate 75% of their sales and 90% of their profits (if they have any). To tell a mfgr to take a hike is a VERY risky activiity (loss of future sales, access to parts for repairs [thereby driving existing customers to other LDS that have parts likely to never be seen again], and ill-will in a very 'small' population of shop owners, mfgrs, and distributors).
2) Why do LDS react the way they do to 'online customers' or otherwise provide poor service? Most shop owners are divers first, businesspersons (in the most liberal sense of the word) second. Many are frustrated with #1 and simply don't know what to do about the move to online retailing. Most don't have the time, energy, nor ability to plan beyond making next month's rent.
Its true that most Manufacturers have a contractually obligated Minimum Advertised Price (MAP). However, as I understand it, it is against anti-turst law for them the dictate the actual selling price. Many online non-dive related retailers have found away around the MAP by simply posting "too low to advertise, put in in your checkout basket to see the price". While the MFGrs wouldn't have a legal leg to stand on, they can still decide to not supply you with gear. Who wants to take the first arrow in trying to change the base of power?
3) If I were an LDS owner AND I had decided to stay in the business, what would I do? After having my head examined, I would
(1) re-price my equipment to be close, but slightly higher than online prices -- and make sure that every other LDS in the area knew it [signalling]. Most customers will pay a slight premium to be able to buy it and dive it today;
(2) I would only deal with mfgrs where I didn't have minimum purchase amounts or even MAPS. No more BCDs...al BP/W which (a) are better, and (b) generally size indifferent. I wouldn't need to stock 6 different sizes in 4 different configurations. Neopreme -- not a problem, there are enough suppliers out there that I could work with where I wouldn't be hamstrung. Dive computers/bottom timers? I'd sell one mfgr wrist model -- non-AI and non-wireless. Fins/masks/snorkels....a non-issue, they are so dang cheap from Asia that I can get a reaonable price through a number of channels.
(3) raise my air fill prices to $35 a fill -- and make sure that every dive shop in the area was aware of the price [signalling]. Can't buy air online and even the most avid 'average' recreational diver wouldn't be able to cost justify buying their own compressor even at that rate...much less know how to maintain it and service it. Other area LDSs might be giving more airfills, but theoretically, I'd be moving more equipment. If they lower their equipment w/o raising air fill prices, then they have NO margins.
(3) I would offer the best customer service I could muster. I'd be honest with divers and treat them the way I want to be treated. I'd train new divers using equipment that would last them a loong time....not until they figure out they were screwed a year or two later..
Would I succeed? MAYBE. But I would need a lot of capital in reserve to let evolution take its toll of the LDSs that would not follow suit on certain things and cause me some lost sales to start with. Would the return be worth the risk....I haven't worked the numbers, but I doubt it.
So......in the future, we will have
Dive Instructors who are independent that rent pool/classroom time and guide students on equipment purchases online -- at certification rates that are above the current rates.
Equipment Sales -- online, direct from manufacturers for the most part. The local sporting goods will carry more mass-market equipment like masks, snorkels, and fins.
Travel -- online again
Air Fills -- bought the only thing that can't be disintermediated.....could be a combination of the sporting goods, co-ops, instructors, or maybe newer technology will render them less important (read: recreational rebreathers or the supposed new 'gills')
As I said, FWIW.....
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