Dive industry BS

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MikeFerrara

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Scuba Instructor
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As many of you know, I own a dive shop and in fact am in the process of closing it. We're not closed yet though. Anyway I have often posted about the demand that the manufacturers place on the dive shops and what I think the effect on the industry is.

I have been a Cressi dealer for a couple years now, however the cressi stuff doesn't sell that great and we mostly sell a few of their masks, fins and bags. Just today we had a customer who wanted a Cressi mask in a color that we don't have in stock. My wife called to order the mask and was told that they wouldn't fill the order unless we placed a $1000.00 order to bring us up to where we SHOULD be for the year.

My wife explained to them that she was going to get the mask on-line and fill the customers order whether Cressi liked it or not. Cressi told her that if she did that she was just supporting those who are putting us out of business. My wife explained to Cressi that it was the manufacturers who were putting us out of business. Keep in mind that Cressi get real silent when asked how Divein can sell Cressi regs for less than I pay for them.

BTW, the mask only cost me a couple dollars more from an online source.

I would rather deal with the mob than the dive equipment manufacturers. In fact I see little difference in methods and ethics.
 
This is reason 758 that someone invented beer mike....bottoms up :D
 
back of the napkin economic analysis of what is/will happen. Whether they are doing it through ommission or commision, they are in fact changing the entire distribution system of the Dive Industry.

Personally, I would love to find a way to own and oprerate a dive shop where I could at least cover my expenses (personal & business). Thusfar, my analysis hasn't demonstrated a way of doing it. The only option in the short term is to go the ONLINE route....but even that has a limited life time.

Ultimately, the only way for non-certification agencies and non-manufacturers to make money is to have in PADI vernacular -- an Experience business -- gotta have a boat/resort. Most folks are smart enough not to want to own a boat and as Will Rogers said [paraphrasing] "I like land, cause they ain't makin it no more"

Good Luck.

Otter
 
So,
You got anything for sale at a fraction of cost????
E. (vulture in disguise...)
 
Mike- Sorry to hear you are leaving that end of the industry. Sounds like you and your wife try to give your customers good service.

While I can understand Cressi's desire not to deal in small spot orders, their insistence that you should be at a certain level of sales for the year is probably unrealistic. If their products are not selling, it is not entirely the dealers fault!

Personally I love the Big Eyes and, as an UW videographer, it is the only mask I dive with. However it is also the only Cressi product I purchase.

Good luck where ever you end up.

By the way Otter, Will Rodgers was wrong- if you go to volcano territory in Hawaii or wait a few million years elsewhere, they are making more land! Just teasing.

Dr. Bill
 
drbill once bubbled...
By the way Otter, Will Rodgers was wrong- if you go to volcano territory in Hawaii or wait a few million years elsewhere, they are making more land! Just teasing.

Dr. Bill


It all depends what the meaning of LAND is. I prefer to think of volcanic activity as simply rearranging LAND rather than creating LAND. Then again, if I could figure out a way to buy the land deep in the mantle/crust, then maybe I could will it to my great-great-great-great [well you get the idea] grandson so he could be a rich landowner :D

And no, I will not accept offers from people on here to sell me that land cheap.....I go to landswindles.com for that! :eek:ut:

Otter
 
Thats sad news to hear your shutting your doors. What is your last day of businees you will be open? Have any immediate plans for the future yet? Dont think that the dive industry is the only thing this is happening to. I have a computer network consulting business that deals with the same thing. I now have a policy of telling the customer that he can either order it on the internet or go buy it in a store themselves or I will buy it from my distributer, but expect to pay 15-30 percent more. Im lucky if I can get the parts at my distributors within 10% of a online price. (and thats without shipping). I did this becuase I was sick of people complaining they could get it online cheaper and that I was ripping them off. The only saving grace is that I make 90% of my income on the labor rate, so they get screwed anyway. The online shops are a way of life, and its not going to stop. Nowadays, most manufactures believe if you want to stay in busineess, you have to use all means of distribution, which sadly means the e-retail, catalog mail order, spamming, direct to consumer,etc, etc. There is always going to be someone that is willing to sell their product directly to the consumer, or a e-retailer. Welcome to the 20th century. The days of loyalty within the distribution/manufacture network are long gone. You may have been joking about the mob, but you know what? Your more right than you know. Most underground networks of business (read mob, illegal activities, etc) use a tier system that makes everyone come out with a profit. Everyone stays happy, and more than that, they actually play a role in the business that makes them feel needed. No wonder it thrives so well. If you have any time, read a book called "Reefer Madness, Sex, Drugs, and Cheap Labor in the American Black Mareket" the author is Eric Schlosser. It doesent exactly illustrate my point here, but in a round about way it does. Hell, how many times have you personally read of some company that joe schmoe works at for 20 years and then one day in a effort to cut costs tell him hes no longer needed. Cya... goodbye, aidios. And the sick part isnt that they NEEDED to get rid of him. The ceo, cfo, president , or whatever wants bigger profit margins, so they cut the workforce, making the remaining workforce feel happy they have a job, and work them harder and harder to make up for lost manpower. Its goes back to the fact that the line seperating wealth among the people is widening. aint america great?
 
Hey Mike , it's good to see that you and I still agree on the BS.

I live in a very small inland market were one shop closed after 12 years in business and another has a bad reputation.I am still listed as a private instructor/dive shop in the phone book.

On the vendors......

Some(most) of these bozos want a $5000.00 opening order and will only take your credit card with no other terms.

PADI will only give a deal on training materials purchased over $5000.00

I had wanted to have Picasso freediving gear but the Canadian rep again wants $5000.00

Add $10,000-$15,000 for a compressor.Or buy a cheap portable. THEN.......

Train 25 students a year that do not even finish locally and F.O. to the tropics never to be seen again. Local diving is dead but a few still want to learn and dive tropics only.It's hard to even predict what will or will not sell.

Granted the biggest margins are on the personal gear but is that not what Ebay is for ? Or online buying?Do these vendors have a compressor on the web doing tank fills?

I an still wound up at Dive Rite for their joke of a Canadian rep.

Just what is one supposed to do?

I work at a job during the day at a college bookstore as a manager.I am a textbook buyer,deal directly with publishers and authors and guess what?
I can place an order for 1 book,wether it be $12.00 or $150.00 or $20,000 get 30 - 60 day terms and some of them have never heard of us.

Try and buy one friggin mask for $15.00 from your supplier.

A sale is a sale is a sale and the industry will eventually just cut thier own throats, as I have stated befor, with these tactics.

For the life of me I am still trying to figure out why an onsite compressor is important to these guys.Some of us have space where you cannot legally have one on site....Bet you will not find a compressor in a store in Cozumel.All fills are by the islands own compressors.There are lots of areas where Prax Air will do tank fills ,what is the difference?That store compressor is a liability not an asset.

Hell,I still cannot get paid for freelance teaching for the store with the bad rep :) .

I am sorry to hear this story from you Mike . I wish I had the money to go to DEMA and raise suppreme SH**T with these guys.

I think that once again you and I have hit the nail on the head.

Keep in touch and take care!

Ron
 
Ron Brandt once bubbled...
A sale is a sale is a sale and the industry will eventually just cut thier own throats, as I have stated befor, with these tactics.

Or the manufactuers will go direct to the consumer and enjoy aportion of the margin that is currently shared with the distributors and LDSs. They can't tell US that, because they still need the LDS....for a while.

Otter
 
The LDS here is having the same problems with manufacturers, and will probably be forced to close within the year.

Dive shops get screwed by the manufacturer and pass the costs along to customers...The customers then buy online and the LDS has a bunch of gear they can't sell.

This is crazy, the industry needs to get its act together.
 
https://www.shearwater.com/products/teric/

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