You think that they make this much profit??? I have the distributor prices and the profit margin is so small, it is hardly worth it for anybody who doesn't do large volume of compressor sales if they have to stock them.
Burhan
We have all but agreed what this model does and doesn't do and have deconstructed the weak sales hype from the real engineering performance claims and so far as no one has disputed the facts given so far. Further we have also discussed in detail some repair and maintenance aspects not normally discussed by either the dive shop (seller) of potential purchaser (diver) when considering a particular make or model compressor.
Again finer engineering points regarding life expectancy wear material and running costs I trust have illuminated to any potential buyer exactly what they are getting for this $5000 compressor.
But one remaining item remains outstanding in that and we need to agree my claim that the dive shop makes 30% selling this compressor to the public. And in particular reference to DGX Diver Gear Express (the dive shop seller) and L&W Americas The importer and trade distributor)
Now I don't dispute your opinion but we need to agree the position of this 30% mark up to the shop when selling to a diver otherwise readers will think I am guessing.
So all or nothing Here is my position:
L& W Americas set about to create what they call a
qualified partner status with selected dive shops in the rich kids with toys areas from Miami to Hawaii and give each a boundary that can be effectively serviced by that retailer (in effect a closed shop) For an opening order of $50K partners are free to choose the models they think fit to sell to the hotels, dive resorts, rich kids and marinas they think fit. A combination of models and in addition to the $50K order the Partner is required to have in stock $5K worth of spare parts (filters I guess for the hot areas)
In addition these "dive shop retailers" must keep to a minimum annual order of $125K worth of compressors after discounts have been applied each year.
And here is where it gets interesting LW Americas must be copied on all quotes and complete sales of L&W compressors required for warranty and recall purposes (LOL)
Further any inquiries that come into LW Americas from a partner territory are handed over to the partner.
No Competition.
Now the discount the dive shop gets for this is not 0% nor is it 15% or even 20% of 25%
It is as I originally stated a 30% discount from the $5000 list price of the model
Now if any of my fellow divers wish to disagree feel free knock yourselves out.
But it is what it is 30% so either your wrong or if you are a reseller of these products your getting I think the American term is hosed. Your call. Iain