Typically 100%. Some items/manufacturers don't have the same markup. Search MAP or MARP on the board and read a about it.
Full retail can be 100% with a few manufacturers. Map price is 10 to 15 less than that and most shops discount another 10% or so. But remember that a niche industry like this one has a big purchase quota- up to 15k to remain a dealer of a certain gear manufacturer. There's a huge cash outlay involved. Aqualung hasn't dropped their Quota like most gear manufacturers have due to the economy.
WOW i am shocked by what all you are telling me, i guess no matter what we all are still bending over for the dive shops in a big way, no matter how much they tell ya how good of a deal you are getting:depressed:
If dive shops were making a killing there would be one on every corner. This is not the case. Yes, gear is the highest margin item in a shop. Air/Nitrox is the biggest loser. Service is in the middle depending on how good a job the shop does. Even the dreaded VIP isn't a decent money maker, maybe a 20% margin (4 bucks). Tech training pays OK, Open Water is a losing proposition. If the student buys a mask fins and snorkel the shop breaks even.
You're not going to get rich owning a dive shop unless the water is at your back door and you have a captive audience. Many shops in these types of locations charge a premium price for discover scuba's and any other class. I've seen Discover Scubas advertised at 5 times what the shop I work for charges. Many times they are booked full!
You aren't considering the overhead a shop has to deal with. A 3000 square foot retail space in a decent area is going to run about a buck a foot. $3000 a month.
Heat/Light/Phone/Internet/Insurance.... say $1500 a month or more when the compressor runs every day.
Agency fees vary but lets say 2 grand a year.
Air testing/maint. is another black hole for a shops money. 600 or so a year plus another 900 a year for filters and oil. Another 500 a year for oxygen fills to make nitrox.
repair and replacing rental gear for another 5k a year.
Paying instructors and yourself adds another big hit each week.
The list keeps rolling on....The shop can't live on your $7 air fill 4 times a month, so yes, money has to be made somewhere. If we don't let the shops make a little here and there, you'll be driving a ways for fills or buying your own compressor.
If you want to be a millionaire, marry one. Don't bother trying to become one by owning a dive shop.
If your looking to get a good/great deal typically the number is 20-25% off MSRP
That is the percentage I shoot for when purchasing Equipment If the dive shop say's no to my price I go on to the next one. I have found a little persistence and you will get your price..
That's a fair estimate on some big name gear, but others you really can't keep the doors open at 30% margin.
Most gear will sit longer than most other types of retail shops. Some gear gets outdated quickly and must be blown out at the end of year. Some manufacturers have 30 day satisfaction guarantee that you can bring an item back if you don't like it. I this case the dealer eats the item and has to sell it as used or use it for rental.