Would you support an LDS...

[HarryWhisman]

My LDS also has a paid membership thing where you get discounts and stuff. 10% off all gear, $3.00 fills and I think you get travel discounts as well. The problem is like web monkey says-they aren't Costco and as far as I can tell their club gets them no special treatment from vendors. As much as I like these guys and would love to join their club to save money, there's a problem in that I can't see where it really does that. I can get three dollar fills at the competition's shop without joining a club, I'm really good at getting the best deal possible on travel stuff, and they already know if they don't discount their stuff I'll buy it elsewhere and they aren't going to let that happen if there's any way around it. Before I buy online I give them a chance to compete-It's my own personal "Support your LDS Club" and I'm proud to be a member.

Were I to open my own dive shop I don't think I would charge folks for a discount they could already get online. Maybe a club where you get "free" fills and 1/2 price boat access and a "free" class once a year, now that would get me to thinking.

[O2BBubbleFree]

The structure of many of the big retailers would probably make this difficult for "big stuff", but with smaller manufacturers... Has anyone tried setting up a group buy on this forum? The 'tuner forum I'm on (for racing imports) does this alot and, as long as it's set up well, it seems to work out nicely for all involved.

I'm not sure what you meant by 'big retailers,' what I was refering to is the LDS. A club should be able to band together and convice an LDS to give them a discount for volume purchases.

Since I already belong to a group that get's a 20% discount on all purchases from a LDS, I know it can be done.

Back to the original question, it seems to me that if a LDS had a free membership/club, and hosted meetings and gave membership perks and discounts, that would be enough to generates sales. I mean, if you have people wanting to come to your shop, and walk through the showroom to get to the free meetings and clinics and stuff, that would generate sales. No gimmick necessary.

[devolution365]

I'm not sure what you meant by 'big retailers,' what I was refering to is the LDS. A club should be able to band together and convice an LDS to give them a discount for volume purchases.

Oh, yeah, that'd work -a group buy through an LDS rather than thru the manufacturer. Either way I'd like to see people set some stuff up via ScubaBoard (unless it's not allowed by the TOS for some reason?). I guess I'm just suprised I haven't seen it done on here yet. Like I said, the car forum I'm on seems to have people setting them up fairly regularly.

[Calvin Tang]

I like the idea, however I'm curious how it scales to a small venture such as one store. The benefits of stores like Costco and such are a result of a huge number of members, the fees of which add up to a significant amount of money and thus, leverage to buy things at a discounted rate....which they pass onto the consumer/member. My question is: How will the $22,500 enrich the experience for the customer, or allow you yourself to obtain cheaper rates for equipment which you will pass on to the members?

I am wary of pricing such as member cards in grocery stores, where they come out with a membership program, then slowly and artificially inflate the prices so that the members are paying what they usually would have and the non members are paying a premium.

For example, I already get a huge discount from my LDS by way of just being a loyal customer. That relationship grew over time and is backed by a history of doing business together. I suppose there is a good side to what you are proposing from a business standpoint of getting capital financing to start your shop, but from the consumer's point of view I wonder if it ends up panning out to a real benefit based on the economics of what this seed money will be able to get you from the manufacturers. Also, member vs. non-member is a bit of a rigid model that doesn't leave much wiggle room, at least on the surface. For instance, wouldn't you want a more variable model where you can give an even deeper discount to someone who spends $10,000 a year compared to someone who spends $800, even if they're both members?

[scubamate]

You might consider a dive club membership with annual dues. Then give paid members preferred pricing and "first shot" at trips, etc. Make it an active club with regular meetings, guest speakers and monthly club dives at different locations.

[J75]

Sounds like a good idea in theory, but since you won't be buying in the quantity that places like Sam's Club and Costco do, you won't be able to offer thos kinds of discounts to your customers. I experience big discounts already at the shop I frequent most without having to pay for a membership. but for me, the biggest thing that makes or breaks a shop is the quality of their employees, not their prices.