Wow, the lowest prices on the island. Hope it's not the one that I am thinking about over by Pearl because they are very rude and not even close to the best prices on the island.
Also, yes we all know that they dive shops primary income is from gear but also from charters. especially when most of them pay around $30-50 for a seat and charge the customers $65-125 per seat. not a bad markup on the high end, especially when the to the average price is about $90 on island. However, I even the better priced dive shops on the island are not even near losing money on gear (not that you said that) as their markup is still rediculous. I know instructors that get their gear at cost and the difference in price is crazy for all. If dive shops didn't try to make 50-100%+ profit on most of their gear sales then many more would buy from their LDS. The old let's try and make all our profit on two or three sales doesn't work in the world of the internet any more. LDSs need to go back to the model of less markup and ending up with the same profit in the end because they will sell much more gear. If an LDS currently marking up 50% on their gear would drop their markup down to about 25% I can only imagine what that would do to their sales in the local market.
As for this problem with the expulsion. I too feel there is more to the story but if it can be proven that the students where kicked out of class for buying their gear online then that needs to be taken to the overseeing agency for the instructor and the LDS to have them both either put in suspended status or expelled from the agency. I mean the last time I checked none of the agencies was supposed to be in the extortion business. Don't get me wrong, they do love to should push their wares but that is not saying you can't dive with us if you don't buy from us.