a view from a dive shop

[Jim Lapenta]

Believe me I know all of that. There's an entire section devoted to it in the equipment chapter in my book. I explain MAP, MARP, MSP, and MSRP for those not familiar with the terms. I have no issue with min advertised price guidelines. That is a way of keeping the playing field somewhat level. But to tell a shop that he cannot make a private deal with an individual on whatever terms they agree to is just plain wrong. It really is no different than me telling you to not sell your used reg for $50.00 because then I won't be able to sell a new one to that person. It's BS.

I saw a lot of this go on in the grocery business and it turned my stomach. What happens there is that a large supplier sells to many stores in a chain. This supplier also provides the "service" of printing ads for the chain. Then lo and behold the supplier actually has the items to sell to the store! But the supplier is not always the best source. They will use loss leaders to get people in. Many times a good thing. Though if the store's customer base are "cherry pickers" the store makes squat. But what the supplier will do is be "gracious" enough to offer the owner terms. Soon the owner is into the supplier for a chunk of change he has to come up with. Part of that comes from only buying from the supplier who has minimums the store must buy and carry from them. So when they had boneless chicken breasts at 1.95 cents cost selling for 1.99 it broughf people in. But if that's all they bought the store and my dept got screwed. And the few times I told the supplier to go take a leap and bought local at 1.89 they turned the screws on the owner. I know 6 cents doesn't sound like much but multiply that times 1500 lbs. Not uncommon to go through that much. It was how the supplier, ie same as a mfg, kept control. Much like some gear mfg's do.

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[beaverdivers]

What would you do in that situation?

This situation is a difficult one for all parties.

It is a dynamic new world. As a consumer, you are in the driver's seat.

I would take a step back, breathe and take another look at all the alternatives.

 

[NAM001]

The most successful LDS will be the one that does both of the above. ( store and network sales)

Unfortunately but true. I use mostly scubatoys. OK they got a free plug. But whether i go in or use the network, bottom line is that they are stil in business. I dont now how they would do if the internet was not there, but it is and it has made them sucessful. Consumers , like shops, have a bottom line also. As a consumer i almost hate to go into a shop to look around, or show up at a site with the shop owner there giving the look of "where did you get that" Its a battle of human nature.... the shop wants to succede and the consumer wants his buck to go as far as possible. For me,, places like scubatoys it is a disney land for divers. Floor space to insure you can find your size and brand. I call up and ask , do you have this and they sey yes it will be on the truck to you tonight. Once you get inside (scubatoys) you forget about the sign above the store selling creamation services for 1300$. All that aside, this kind of thing is a reality. On the other hand,,, i also do not balk about training costs. Unfortunately diving like all other like ventures are largely subject to trickle down economics. It is a a tough business ....In my area all the functional shops have gone under. Nitrox fills????,,, unless you are doing it yor self good luck. Unless i make the 100 mile trip to houston area,,, all can get here is a hydro. When it comes to that free fills dont mean much in a small area.

---------- Post added December 4th, 2012 at 03:30 PM ----------
Philly dave

I have heard your argument before many times. What the lds's cant understand or do but wont accept is why buy a 300 dollar wet suit from thier limited display rack when you can go to ebay and buy 3 of them and have the same fitting issues.. Most cases the lds's are just middle men. Ill turn over equipment and get my cut. We all know there is so much more to a real shop than that ,,but there are limits. Most shops do not have most of what you are alluding to. Here is an example. Is that compressor to fill air with or is it there to provide the incentive to buy a tank from them? Yes my profiet margin on this tank is twice as high as the local market but you are getting FREE air? Yes you could get your puter else where but who is ging to show you how to set it up for nitrox. (book?)... after so much of this, can you blame the consumer for wanting to avoid this and just shop on line. The club issue, well you could be right, it is an area dependant issue. If all the club members are whome you recruited with sales, then they are with you because they dont know better. Who is going to fix your gear or do your annuals for you? Well every year or so you put them in a box and wait for the mailman to trudge throught he snow and send them off to someone who is a CERTIFIED tech for them. Unless you have a vending machine selling for cost you are not really going out of the way for the customers. That swimming pool you have because it is cheaper than than other options and its use is available to you anythine as opposed to the ymca limited access windows. Personally i dont mind paying for your pool use but please dont try to guilt me by telling me that it costing you money to keep it available for my use in the off months. These are all turn offs for the customer. Most lds's have been pushed into cutting thier own throats buy the suppliers the competition and finally the customers. Maps, price fixing ect is all worked around one way or another. The box is opened so it is not new, we used this for training so its not new. Pay map price and class fee's are reduced or free. Yes the shop is in the middle of a rock and hard place. Yes they can do a lot for the "real costomers" Yes the main business is selling classes and the equipment to suport that end. Its all part of business. I gues it amounts to going to buy a car and having to acknoledge whether you need a newcar or want a new car. Sales men are trainied to know the difference, and the one who needs a new car will always pay more and get less.

Just had a woman in my store who wanted her paintball tank filled. It was leaking like crazy. I usually get lucky plugging the leaks but this one needed to be replaced. There is no where in Philly selling or servicing paintball gear because the internet drove them away. This is what is happening to the scuba industry. I own the only shop in Philadelphia, a city with 1.5 million people. Half my customers shop online at leisurepro and scuba.com. I have an online store too but you just can't compete with their marketing and manipulation of MAP pricing. When you come into my shop you are getting personalized service from other divers who share your hobby and not some intern behind a computer desk. But keep up the practice of purchasing everything online because it's a few bucks cheaper. Then take the money you saved and purchase yourself a compressor, gear service training, someplace to house the free dive club you operate and pay the monthly speakers, organize local dive boats so they don't go out of business and save a few bucks to ship the product back to the online retailer because no one will accept the warranty from the product you purchased from the gray market. Good luck!

Dave
Owner Scubadelphia.com

 

[Colliam7]

As a consumer, you are in the driver's seat.

So true. And. The roads of commerce are filled with teenage drivers.