Biggest thing killing dive shops?

[BoltSnap]

The grand fallacy here is the idea that there exists a range of low-end to high-end gear that has different quality levels, features, and prices. In general, that isn't true for scuba gear, with the exception of DCs.

In that light, dive shops that push expensive gear are not selling gear that their customer may not yet be ready for. They are, instead, selling gear that is a poor value. Because a $135 mask and a $50 snorkel is no better than a $40 mask and a $25 snorkel.

This is so untrue, it isn't funny.

 

[yle]

But this just reinforces my opinion. I tell the dive shop I'm on a budget and even express my opinion about 2 other shops immediately offering me $750 set-ups and they IMMEDIATELY offer me a $700 set-up after telling me I'm right I don't need a $750 set.

Instead of trying to make a bunch of money from a customer all at one, make SOME money from them upfront so they'll come back and you can make more off of them over the long run (on extras, service, trips, etc.).

But you have to consider that the $250 reg-octo-gauge deal you found online is likely a "loss leader". Having worked in a dive shop, having seen the Aqualung dealer catalog, I can tell you there is no shop that can sell you an AL Core with octo and gauge for $250 without taking a bit of a loss. I think the MSRP on just the Core alone (i.e. no octo or gauge) is more than $250.

The worst thing about "deals" like this on the internet is that it gives customers the impression that dive shops are making huge profits on that $700 reg set, because the customers assume that the $250 "deal" must have a small profit built in. In reality, the dealer cost on that $700 set is probably around $500.

I can also see from the LDS perspective... you told him "the other guys want to sell me a $750 reg set, and I can get a special deal on the AL Core online for $250." He might have thought "well, there's no way I can give a better price on the Edge, so my only possible sale here is to beat the $750 offer." If the LDS had offered you the same Core package for $400 (which would have been probably right at his cost, or a little below), would you have bought it from him? Or would you have still taken the online deal?

 

[boulderjohn]

The worst thing about "deals" like this on the internet is that it gives customers the impression that dive shops are making huge profits on that $700 reg set, because the customers assume that the $250 "deal" must have a small profit built in. In reality, the dealer cost on that $700 set is probably around $500.

As I said in some earlier posts, because of discounts for high volume, some Internet prices are lower than dealer cost at the local shop, and the online dealer is making a profit.

 

[Umuntu]

The worst thing about "deals" like this on the internet is that it gives customers the impression that dive shops are making huge profits on that $700 reg set, because the customers assume that the $250 "deal" must have a small profit built in. In reality, the dealer cost on that $700 set is probably around $500.

I can also see from the LDS perspective... you told him "the other guys want to sell me a $750 reg set, and I can get a special deal on the AL Core online for $250." He might have thought "well, there's no way I can give a better price on the Edge, so my only possible sale here is to beat the $750 offer." If the LDS had offered you the same Core package for $400 (which would have been probably right at his cost, or a little below), would you have bought it from him? Or would you have still taken the online deal?

As I said in some earlier posts, because of discounts for high volume, some Internet prices are lower than dealer cost at the local shop, and the online dealer is making a profit.

I know that Aqualung and other manufacturers have periodic special offers on package sets of regulators or "free octo" offers. The online dealers seem more adept at keeping track of these special offers and making them available to customers. Whilst the LDS still wants to charge full MSRP on his older stock and seldom points out the availability of the special offers.

 

[Scuba-Blue-13]

If the LDS had offered you the same Core package for $400 (which would have been probably right at his cost, or a little below), would you have bought it from him? Or would you have still taken the online deal?

Honestly, I would have probably bought from him. I do prefer to shop local when I can and support "small business" as often as possible. Buying it in my LDS would ensure I have someone local that is familiar with the particular brand of equipment, is close by in the event of an issue, can offer additional advice, and would help me establish a relationship with that business. That is all worth the (comparatively) small additional expense.

If you never shop local than that business isn't going to be there when you need them. I can't get air fills online.

 

[runsongas]

the 250 dollar deal he was talking about was for edge regs, not aqualung. the taiwanese regs cost less because the cost is lower at each step in the supply chain and the markup is lower.

it is unlikely you could find an AL core with octo and a spg for 400 from a retail shop as that would be very close to dealer cost before volume discounts.

 

[Umuntu]

the 250 dollar deal he was talking about was for edge regs, not aqualung. the taiwanese regs cost less because the cost is lower at each step in the supply chain and the markup is lower.

it is unlikely you could find an AL core with octo and a spg for 400 from a retail shop as that would be very close to dealer cost before volume discounts.

Not trying to argue, but I just looked to see. In UK now I could easily find a Core Supreme Stage 3 including Octo for about $325 including shipping. I can easily find an SPG for less than $75. The retailer is reputable too.

 

[runsongas]

that is with a free octo promotion running in the UK. that offer isn't being offered in the US currently. the UK pricing is also lower because it was set when the exchange rate from GBP to USD was higher iirc. MSRP difference of 280 GBP vs 480 USD.

 

[iain/hsm]

Having worked in a dive shop, having seen the Aqualung dealer catalog, I can tell you there is no shop that can sell SNIP

You are describing what a typical small independent scuba shop gets as a price list.

What you are not aware of however is that there are three tiers of discount from that list depending on the size and volume of your sales given only to other bigger retailers.

Further still there are two other price lists you have not seen and few are aware of, that are substantially lower than your Dealer Price list even with the three tier discounts.

One is called Jobber Pricing the other is called Distributor Pricing.

There is one other final price list for the worldwide importers and distributors called Dropped Shipment Pricing. For those few who have experience of ordering 10,000 fins or masks for example in each size and colour drop shipped out of Taiwan.

You ask what the biggest thing killing dive shops?

I guess now you know. LOL

 

[boulderjohn]

I know that Aqualung and other manufacturers have periodic special offers on package sets of regulators or "free octo" offers.

Aqualung and other manufacturers give discounts to different dealers based on volume. They even do it on individual items within a dealership. The shop I worked for years pushed specific models, some Aqualung, for that reason. If you sell 4 different Aqualung BCDs but focus sales on one specific model and do well enough with that strategy, Aqualung (and other manufacturers as well) will discount that one model for you. That shop found that strategy to be very effective in increasing their profit margins.