ScubaPro Click N Mortar?

PhilEllis · May 20, 2009

I just got an interesting email from a friend about a new ScubaPro program that has just been announced. Appears that ScubaPro is "sneaking up" on the concept of internet sales....at least internet ordering. They seem to be going with a new Shopatron alternative.

ScubaPro Email:
Dear SCUBAPRO Dealer,

In our continuing effort to increase consumer satisfaction, sales, and store traffic, we're rolling out a new service: SCUBAPRO Click N Mortar In-Store Pickup. Click N Mortar is different from online shopping, because fulfillment happens in your store!

SCUBAPRO Click N Mortar program uses new Ship to Store technology from Shopatron. Online shoppers can browse the products featured on SCUBAPRO online catalog, select any model, size, color, or accessory and be assured of its availability when they go to the participating authorized dealer of their choosing. Payment is convenient, shipping is free.

The benefits of participating in Click N Mortar are not limited to consumer convenience. The opportunities to upsell and create relationships with new customers or customers who wouldn't regularly visit your store, can be very valuable to your business.

Increase your store traffic and sales- sign up for Click N Mortar Today! To help you better understand how Click N Mortar and the Shopatron system works, we've prepared a detailed "Order Flow" and Frequently Asked Questions for Dealers, and Consumers.

We will also be hosting Webinars with the Shopatron team on:
Wednesday, May 27, 2009, at 3pm CST and Thursday, May 28th, at 11am CST.

Click N Mortar officially launches June 1, 2009. We are confident Click N Mortar will be a successful service, and thank you for your ongoing loyalty.
Best Regards,

Team SCUBAPRO

I wonder what happens if someone orders and they find that they are 200 miles from the nearest dealer? Long drive for order pickup? I guess shipping is free because there isn't any.

Phil Ellis
www.divesports.com

diversteve · May 20, 2009

That's what their competition (Atomic) does now. Also through Shopatron.

PhilEllis · May 20, 2009

diversteve:
That's what their competition (Atomic) does now. Also through Shopatron.

Actually, as I understand the email, the ScubaPro program would work a little different from the Atomic program.

With the Atomic program, the order is placed and forwarded to the closest BIDDING dealer for shipment. It sounds like the ScubaPro program would be in-store pickup only. Of course, I certainly can't tell all of the details from this email, but I know that Shopatron offers the in-store pickup system as one of their products.

Phil Ellis
www.divesports.com

lowviz · May 20, 2009

SP is getting itself dangerously close to direct customer contact.

PhilEllis · May 20, 2009

I assume this might be the program that ScubaPro intends to use.

http://ecommerce.shopatron.com/news/press-releases/shopatron-delivers-unbeatable-value-trifecta

Phil Ellis
www.divesports.com

DennisS · May 20, 2009

I don't understand what the scubapro website accomplishes.

I drive to a LDS and buy one or I can go online and buy one frome leisure pro. One way I pay taxes, the other way I pay shipping. One way I have to drive to the store, the other way I get it delivered to my door

DA Aquamaster · May 20, 2009

It will be interesting to see where the consumer pays - on-line or instore. If on-line how is the dealer reimbursed for their portion of the sale and what are the percentages. If in store, what happens if the product is ordered but never picked up - is the dealer charged to stock it or to return it?

On the one hand, the dealer is not having to stock items in advance of a sale as they are essentially sold on arrival (meaning a lower margin may have some justification). On the other hand, if this becomes the primary way that product is sold, there is little incentive for the dealer to stock anything as it will just sit on the shelves a lot longer than it did in the past. That leaves dealers with less incentive to keep stock on the shelves and limits the opportunities for customers to see and feel it before buying.

In addition, what if an item sells for 100% of MSRP on-line and the dealer sells the same thing in shop at 90% of MSRP? Who reimburses the customer who paid too much on line and now knows it, especially if the dealer margin is already lower under the click and mortar program?

What happens if the customer buys it on-line, then on picking it up decides he does not want it (wrong size, does not like the features, wants to upgrade to a different model, just bought a another brand yesterday, etc.) Who returns the customer's money and who pays for return shipping? If it is a size exchange, is the store now stuck with a not gonna sell anytime soon XXXL wet suit or a product that has zero appeal in their local market/diving environment (perhaps the reason the customer did not want it in the first place)? The ability to get locally relevant advice and test drive an item in the store are after all two of the benefits of buying in the store.

It adds a level of complication to the whole situation, may have some unintended consequences and certainly raises a lot of questions dealers will need answers to before they sign on the dotted line. Besides, dealers have in effect had the ability to do this anyway. The dealer agreement just requires that the customer come in the store at some point in the transaction - which raises the question of whether dealers can now sell through their own websites with the customer doing an in-store pickup rather than doing it through shopatron.

PhilEllis · May 20, 2009

I have no way to know how the ScubaPro program will work. I have only seen the email I posted. However, I DO know how the various Shopatron program work. It is my assumption that the customer will pay Shopatron when they order the product. Shopatron will then send the dealer the money (minus a percentage) in 30-45 days.

The dealers will be expected to have inventory on the products. They will certainly not be able to wait until they receive an order to bring in the product. After all, the customer might walk in the store immediately after the order is placed. Of course, if the customer changes their mind, Shopatron will likely issue the credit and they will "capture" it from the dive shop using whatever means they have established.

In all likely hood, the products will be sold as MSRP. I can't imagine any other way they could do it. After all, some dealer simply don't give discounts, so Shopatron certainly couldn't sell at a lower cost on their behalf.

These "third party" services may work very well for General Electric, Lowes, Home Depot, and a variety of others. However, I can't imagine this working well in the scuba industry. Many scuba customers are shopping online for price and other benefits. These don't seem to be offered with the third party operations.

Remember, Shopatron is simply an online store. They are a retailer just like me and every other local scuba store. However, they only list the products for manufacturers who have contracted with them and they use the existing dealer base for fulfillment of the order, in return for a percentage of the product. That's how it works with Atomic and that's how it will work with ScubaPro.

The questions becomes....does the local scuba store need a "third party" to help them retail their gear...especially if the market is confined to the local "pick-up" market.

Phil Ellis
www.divesports.com

DA Aquamaster:
It will be interesting to see where the consumer pays - on-line or instore. If on-line how is the dealer reimbursed for their portion of the sale and what are the percentages. If in store, what happens if the product is ordered but never picked up - is the dealer charged to stock it or to return it?

On the one hand, the dealer is not having to stock items in advance of a sale as they are essentially sold on arrival (meaning a lower margin may have some justification). On the other hand, if this becomes the primary way that product is sold, there is little incentive for the dealer to stock anything as it will just sit on the shelves a lot longer than it did in the past. That leaves dealers with less incentive to keep stock on the shelves and limits the opportunities for customers to see and feel it before buying.

In addition, what if an item sells for 100% of MSRP on-line and the dealer sells the same thing in shop at 90% of MSRP? Who reimburses the customer who paid too much on line and now knows it, especially if the dealer margin is already lower under the click and mortar program?

What happens if the customer buys it on-line, then on picking it up decides he does not want it (wrong size, does not like the features, wants to upgrade to a different model, just bought a another brand yesterday, etc.) Who returns the customer's money and who pays for return shipping? If it is a size exchange, is the store now stuck with a not gonna sell anytime soon XXXL wet suit or a product that has zero appeal in their local market/diving environment (perhaps the reason the customer did not want it in the first place)? The ability to get locally relevant advice and test drive an item in the store are after all two of the benefits of buying in the store.

It adds a level of complication to the whole situation, may have some unintended consequences and certainly raises a lot of questions dealers will need answers to before they sign on the dotted line. Besides, dealers have in effect had the ability to do this anyway. The dealer agreement just requires that the customer come in the store at some point in the transaction - which raises the question of whether dealers can now sell through their own websites with the customer doing an in-store pickup rather than doing it through shopatron.

mike_s · May 20, 2009

boy... I see this back-firing BIG TIME for ScubaPro.

Now shops will have to answer "if I can order it from ScubaPro online, why can't I get it for the same online price that Leisure Pro has it for?"

:popcorn:

I was in a shop in Florida yesterday and got the "online sales of gear" is hurting other "real dealers" from someone who worked there. :shakehead:

(yes they were a scubapro dealer)

mike_s · May 20, 2009

PhilEllis:
I just got an interesting email from a friend about a new ScubaPro program that has just been announced. Appears that ScubaPro is "sneaking up" on the concept of internet sales....at least internet ordering. They seem to be going with a new Shopatron alternative.

Originally Posted by ScubaPro Email

Dear SCUBAPRO Dealer,

In our continuing effort to increase consumer satisfaction, sales, and store traffic, we're rolling out a new service: SCUBAPRO Click N Mortar In-Store Pickup. Click N Mortar is different from online shopping, because fulfillment happens in your store!

SCUBAPRO Click N Mortar program uses new Ship to Store technology from Shopatron. Online shoppers can browse the products featured on SCUBAPRO online catalog, select any model, size, color, or accessory and be assured of its availability when they go to the participating authorized dealer of their choosing. Payment is convenient, shipping is free.

The benefits of participating in Click N Mortar are not limited to consumer convenience. The opportunities to upsell and create relationships with new customers or customers who wouldn't regularly visit your store, can be very valuable to your business.

Increase your store traffic and sales- sign up for Click N Mortar Today! To help you better understand how Click N Mortar and the Shopatron system works, we've prepared a detailed "Order Flow" and Frequently Asked Questions for Dealers, and Consumers.

We will also be hosting Webinars with the Shopatron team on:
Wednesday, May 27, 2009, at 3pm CST and Thursday, May 28th, at 11am CST.

Click N Mortar officially launches June 1, 2009. We are confident Click N Mortar will be a successful service, and thank you for your ongoing loyalty.
Best Regards,

Team SCUBAPRO

Click to expand...

I wonder what happens if someone orders and they find that they are 200 miles from the nearest dealer? Long drive for order pickup? I guess shipping is free because there isn't any.

Phil Ellis
Discount Scuba Gear at DiveSports.com - Buy Scuba Diving Equipment & Snorkeling Equipment

hey Phil.

I got a very similar parody email from someone making fun of that first email, referring to how 'full of it' this new program is.... :rofl3:

I can't resist not posting it here (but will keep the author's name out of it).

(it's too funny not to post as it shows how in todays marketplace that this program is already way behind the times....)

here it is:

Dear HORSEPRO Dealer,

In our continuing effort to increase consumer satisfaction, sales, and store traffic, we're rolling out a new service: HORSEPRO Manure N Mortar In-Store Pickup.

Manure N Mortar is different from buying a newfangled automobile, because manure collection happens in your store!

HORSEPRO's Manure N' Mortar program uses new "Horse ass to Store" technology from Manureatron. Modern shoppers can purchase a horse from any HORSEPRO dealer, select any breed, size, color, or tack and be assured of its ability to compete with those pesky automobiles. When they go to the participating authorized HORSEPRO dealer of their choosing, they will be able to get a HORSE that has the stamina of the new automobiles and no messy manure. Payment is convenient (if overpriced), In addition your customer will only be able to feed their HORSEPRO Horse at participating HORSEPRO dealers, meaning more income for loyal HORSEPRO dealers (and possibly more dead horses by the roadside, rotting and smelling).

The benefits of participating in Manure N Mortar is not limited to consumer convenience. The opportunities to upsell and create relationships with new customers or customers who wouldn't regularly visit your store, can be very valuable to your business.

Increase your store traffic and sales- sign up for Manure N Mortar Today! To help you better understand how Manure N Mortar and the Manureatron system works, we've prepared a detailed "Order Flow" and Frequently Asked Questions for Dealers, and Consumers. Additional Questions can be answered by Manureatron Specialists by smoke signal or semaphore from a tall hill.

Our reps will be driving to each dealer (by automobile) over the course of the next several weeks to explain the Manure N Mortar program and to take orders to ensure you have the extreme inventory required by this program for the anticipated stampede of people willing to spend more for less convenience.

Manure N Mortar officially launches June 1, 1903.
We are confident Manure N Mortar will be a successful service for HORSEPRO as you fall all over yourself to stock up for the promised stampede of stupid customers to your doors, and thank you for your ongoing and completely undeserved loyalty.
Best Regards,

Team HORSEPRO

ScubaPro Click N Mortar?

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