I guess I still don't get the LP thing? We are an LDS that beats LP prices every day of the year. Any LDS out there can do it.... here is how we do it.
1. We don't associate with businesses like Apeks/Aqualung, Scubapro, Oceanic etc... that force price fixing on their dealers. This has driven countless LDS's out of business in the modern age as they can not compete with the internet sellers. We sell quality brands that are honest about their relationships with LP and other online sellers. The first thing struggling LDS's need to do is cut ties with the mafia.
2. We don't vacation on our customers dime. We pay for our vacations... and we take the commissions we earn from group travel and divide them among our travelers to make trips cheaper for all.
3. We don't follow MAP or MARP pricing. Everything we sell is marked up a very modest 40% - 50%. Example: A BCD cost us $168... we sell it for $235.20, Not the MAP of $399. We blow pricing out of the box. A well run streamlined business can do this and survive and the owner can make a decent living. He won't be a millionaire, but depending on market he/she will make $60K - $80K per year and do something he loves. That's his personal pay... not bad for owning a cool business...
4. We don't force sell anything. We listen to our customers and direct them to the things they need... not what we want them to have. In some cases that means telling them where to get something (not from us.) We routinely send people to a local competitor if there is something they specifically want - that we don't sell. The honesty and integrity in doing so shines through to every customer.
A strong network of shops such as this, along with many other things we do... can squash internet retailers. What it takes is a complete mindset change from the old way to the new - modern way of doing business. Dive shops have never streamlined into the internet era. If they want to survive, they must adapt.
We've been preaching this for the entire 2+ years we've been in existence, growing and thriving even in a down economy. Money doesn't have to grow on tress... but it sure helps if you can spend it like it does... lower prices make money go farther... and that's what we're all about.
Remember, we opened because we felt like you guys. We were a couple of divers with a business background that saw a problem - and we've opened to fix it.
We know we've had a hand in changing the industry... and while there are those of you out there that will deny it - there are just as many of you out there that know it's true. We put the Federal Trade Commission on the case, we've kicked the arrogant bastards out of our store and made sure you all knew what they were doing. Selling direct to LP and lying in the faces of our fellow LDS owners.
This nonsense is crushing the industry more than you know. Many manufacturers are struggling to stay alive. 2010 is not going to be better in this industry, it's going to be flat or worse than 2009. To save the industry there must be change. The change must come from the manufacturers, who must allow competition to thrive in a free market. Eliminate MAP and MARP pricing once and for all... and may the best shops win. They will be the streamlined shops that can operate on lower margins - and advertise their prices! I say, look at Walmart - and you have all the proof you need of that. All LDS and Internet owners should be very happy that the market for Scuba is so niche... and small... because if Walmart decides to foray into Scuba.... it will be the only seller of Scuba in the united States within 5 years... and possibly the only seller in the world.
I have personally contacted Walmart already about a sell through alliance. So far - no reponse... but I'm told this can take a while...
In the meantime... lets go diving... and remember where you can save the most money... isn't always online.
