Comparison of the buying online vs local LDS argument

[doctormike]

Can you order an air full online?

Yes. Yes you can.

 

[fullytek]

I know of only 1 distributor in Canada that actually has any significant inventory and provides warranty support or service training

 

[fullytek]

Dont get me wrong I'm not knocking any of the online retailers. In many cases they have done a better job of supplying the market.

I'm placing some of the responsibility on the manufacturers .
I completely understand that is a big online company is going to order 1 million worth of equipment from a manufacturer then they are going to get a significantly better discount then the mom and pop shop.
But when that discount allows the big online shop to sell below mom and pops cost somthing is wrong.

A few manufacturers have a strict map pricing policy. This levels the playing field and allows the little guy to compete.

 

[grf88]

I, for one, am certainly aware of what landed cost means. Despite those crazy close outs on LeisurePro, after I go through checkout (without actually buying), I always get a price that’s more expensive than I can get it locally with taxes. Always.

One of the times I bought something online was from Deep6 because it was the only option for their products. Shipping was $USD86 for 2 sets of regs; customs duties and taxes was CAD$400!!! On a Black Friday discounted price! Guess whose not going to buy from outside the country again, unless absolutely necessary?

If you do buy from the US you have to be very careful of your choice of shipper. By the sound of it you were taken to the cleaners by UPS. I think the handful of Canadian buyers who use UPS are subsidizing their entire US operations based on the charges they impose. If you are in Toronto a great option is http://crossborderpickups.ca You can use the available low cost or free shipping to their address in Niagara Falls NY and they will bring it across the border for a small fee. You will pay sales tax and any duties (usually very little if any) and NO brokerage fee. That said if your local LDS can come reasonably close in price, say 10 -15% then support them.

 

[Dogbowl]

If you do buy from the US you have to be very careful of your choice of shipper. By the sound of it you were taken to the cleaners by UPS. I think the handful of Canadian buyers who use UPS are subsidizing their entire US operations based on the charges they impose. If you are in Toronto a great option is http://crossborderpickups.ca You can use the available low cost or free shipping to their address in Niagara Falls NY and they will bring it across the border for a small fee. You will pay sales tax and any duties (usually very little if any) and NO brokerage fee. That said if your local LDS can come reasonably close in price, say 10 -15% then support them.

I actually specifically picked USPS/Canada Post. Canada Post’s “handling” fee is CAD$10 but the rest were actually customs duties and HST. I calculated it and it did make sense. Unfortunately, the company declared the “regular price” instead of the Black Friday price and so Canada Post based the duty/tax calculation on the higher regular price.

I will definitely keep crossborderpickups in mind for future large purchases. Thanks!

 

[kelemvor]

Dont get me wrong I'm not knocking any of the online retailers. In many cases they have done a better job of supplying the market.

I'm placing some of the responsibility on the manufacturers .
I completely understand that is a big online company is going to order 1 million worth of equipment from a manufacturer then they are going to get a significantly better discount then the mom and pop shop.
But when that discount allows the big online shop to sell below mom and pops cost somthing is wrong.

A few manufacturers have a strict map pricing policy. This levels the playing field and allows the little guy to compete.

I guess you and I will have to disagree there. Price fixing schemes like MAP are unethical, and should be flatly illegal.

 

[fullytek]

I guess you and I will have to disagree there. Price fixing schemes like MAP are unethical, and should be flatly illegal.

Well I agree map pricing not necessarily good for the consumer I gota ask how does a small dive shop offer equipment for the same price when dealer list is more than some online deals

 

[doctormike]

I completely understand that is a big online company is going to order 1 million worth of equipment from a manufacturer then they are going to get a significantly better discount then the mom and pop shop.
But when that discount allows the big online shop to sell below mom and pops cost somthing is wrong.

I don't understand. Isn't that the whole point of a volume discount? That you pay less per unit when you order a lot of them.

I mean, it's not possible for the online shop to sell below the LDS cost, because in that case the LDS would just buy from the online shop. Presumably, the LDS offers some value add to make up for the price differential. That could be local service, general diving advice, the ability to see gear in person and possibly even try it out before buying, etc...

 

[kelemvor]

Well I agree map pricing not necessarily good for the consumer I gota ask how does a small dive shop offer equipment for the same price when dealer list is more than some online deals

If you won't sell it for the same price as the online store, then you've got to offer something to the customer that makes them want to pay more for the same item. That's how my favorite local shop won my business and got me willing to pay more in order to shop there.

You're never going to win in the long run by trying to punish customers or by trying to force your competitors to sell stuff for higher prices. If you do either of those, the customer loses, and they sure aren't going to want to do business with you.

 

[fullytek]

I don't understand. Isn't that the whole point of a volume discount? That you pay less per unit when you order a lot of them.

I mean, it's not possible for the online shop to sell below the LDS cost, because in that case the LDS would just buy from the online shop. Presumably, the LDS offers some value add to make up for the price differential. That could be local service, general diving advice, the ability to see gear in person and possibly even try it out before buying, etc...

You would be surprised how many brands are cheaper online than small mom and pop cost. Tanks are a big one.

Back in the day 2005ish dgx was selling dive rite for way less than the Canadian dealer cost. As a result almost every shop in Canada dropped the line . To my knowledge dive rite has corrected this issue but the Canadian market share has not recovered.