LDS v. Online...yet again...

Dive-aholic · Oct 20, 2006

Only this time with a different twist. This debate is forever ongoing here on the Board. The LDS supporters v. the online supporters. Who's right and who's wrong? Well, The Undersea Journal (a PADI pro publication) starts this quarter's issue with an article titled, "The Future is Now, Make the Web an Integrated Part of Your Business". The basic point of the article is that LDSs need to get an online presence or they'll be out of business within the next few years. Adapt or fail. Okay, granted, PADI is not the end all be all, but it is quite interesting that they're taking this stance now.

Now, let the flames begin....

btw, notice I'm just relating facts, my opinion is not stated here...

TheFoggyMask · Oct 20, 2006

So can this thread be deleted now?

Louma · Oct 20, 2006

This is already being talked about on another, recent thread:

http://www.scubaboard.com/showthread.php?t=162495&highlight=padi+dema

PADI is going to be making this announcement at DEMA and offering training to LDS to help them develope this concept. LDS will have to figure a way to be profitable in the 21st century, or go out of business. The internet is a fact of life.

Another interesting concept is the approach that Gander Mountain and Divers Direct are taking. GM is one of, if not the, largest sporting goods retailors in the world ( I never heard of them until recently).

DD is already in 6 of the 106 stores of GM. In Central Florida (Lake Mary) they have a 6000 sq. ft. presence in this new GM store.

They are a full service - discount - dive store with equipment, air and NITROX fills, repairs, rentals, dive trips, and dive vacations and, oh by the way Online study (leading to certification, after pool work and OW dives) for NAUI certification in OW, AOW, NITROX, and soon to come Rescue and DM, along with various specialties. The concept do your course work online, at your own pace, then work closely with an Instructor in the water where the real learning takes place.

All of this backed by the resourses of 2 large companies, with very deep pockets. It seems that DD has found a way to increase its presence, and I would presume market share, sales and profits. If you were a LDS in the area of one of these 6 (eventually to be 106?) stores, do you look at this as another threat or do you find a way to adjust? What is for sure, the way of doing business for a LDS is changing and changing fast.

Central Fla · Oct 20, 2006

I think it is the manufactureres that are holding the key to this industry. The manufactureres all seem to be in agreement on holding off any discount stores (non authorized agents), at least for now. When this cooperation breaks down the industry will make a drastic change. Divers direct may be a large and upcoming power but what can it do when it must sell at the same prices as all stores. It is not a tremendously large industry so the possibility of direct sales from the manufacturer is not an impossibility either. There must be a bit of pressure on these industries now and when one of the players can no longer keep up the agreement this industry will change overnight. Is it impossible to say that walMart may some day sell the non life giving parts and the manufactures sell direct??

I pull for my LDS (alot), but several weeks ago I saw a 7' hose for sale for $ 112. 00 . Being part of the aircraft industry I can tell you this is above even aircraft prices and quite a bit of it must be mark up. Leisure pro sells some of this gear at half the price and still makes a go of it. Suunto Cobra at LDS over $ 900.00 . vs Leisure pro 464.00 . For those of us that work for a living this is a chunk of change, and in this day and age most of us will make the cheaper choice, how can we not.

Is diving only for the rich, or is it possible the LDS could come down on price and sell more. I think a close cousin of this industry sets an example of what may happen. Tackle shops, when the discount stores arrived they moved near the fishing areas for convienience, with the larger stores filling the gap where not.

I may not be a college professor at this industry and I may be wrong, But what I am not wrong in saying is that the pressure is on, and "change is a comin".

Brandon · Oct 20, 2006

-B.

mirrocraft · Oct 20, 2006

well i agree with this. the stores need to get on the bus or close the doors. its a if you cant beet them join them. its not hard to list your product online with your own online store. its also a better way to advertise to a larger group of people as well.i for one shop online for a better price. i have limited funds and want to get the maximum pruduct the money. as i have my own compressor i dont need a dive shop. just my opinion

REII · Oct 20, 2006

I'm gonna need some more popcorn for this one.

TOM

roakey · Oct 20, 2006

There's already an excellent discussion going on in the thread that Louma pointed to. I suggest you take the discussion over there...

Roak

Dive-aholic · Oct 21, 2006

Central Fla:
I think it is the manufactureres that are holding the key to this industry. The manufactureres all seem to be in agreement on holding off any discount stores (non authorized agents), at least for now. When this cooperation breaks down the industry will make a drastic change. Divers direct may be a large and upcoming power but what can it do when it must sell at the same prices as all stores. It is not a tremendously large industry so the possibility of direct sales from the manufacturer is not an impossibility either. There must be a bit of pressure on these industries now and when one of the players can no longer keep up the agreement this industry will change overnight. Is it impossible to say that walMart may some day sell the non life giving parts and the manufactures sell direct??

I pull for my LDS (alot), but several weeks ago I saw a 7' hose for sale for $ 112. 00 . Being part of the aircraft industry I can tell you this is above even aircraft prices and quite a bit of it must be mark up. Leisure pro sells some of this gear at half the price and still makes a go of it. Suunto Cobra at LDS over $ 900.00 . vs Leisure pro 464.00 . For those of us that work for a living this is a chunk of change, and in this day and age most of us will make the cheaper choice, how can we not.

Is diving only for the rich, or is it possible the LDS could come down on price and sell more. I think a close cousin of this industry sets an example of what may happen. Tackle shops, when the discount stores arrived they moved near the fishing areas for convienience, with the larger stores filling the gap where not.

I may not be a college professor at this industry and I may be wrong, But what I am not wrong in saying is that the pressure is on, and "change is a comin".

$112 for a 7' hose! The last couple of 7' hoses I bought were $22 each, from an online LDS. Yes, the manufacturers do try to control the prices of equipment through MSRPs, but there are ways around that. There is a significant online presence in the industry and those shops are doing well. I even received an offer recently via e-mail on equipment that had that limitation. The seller was able to get around that in a way compliant with the manufacturer's limitations. There are ways to do this. The LDSs just need to be a little creative.

Buoyant1 · Oct 21, 2006

My LDS is great! Their prices are VERY comparable to anything online and in some cases MUCH better..the best part is their service, and the fact that I get to dive with them a lot!

No comparison for me!

LDS v. Online...yet again...

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