How do Local dive shops stay afloat?

[Bill51]

I’ve heard of some of the dive shops that won’t bargain or help regular customers, but so far I’ve been fortunate to have always found places that truly wanted my business. From what I’ve read here on this thread, if I were in a location where I couldn’t find a “reasonable” and helpful LDS, I’d probably be tempted to order everything online.

The best LDS, that I still miss since moving to Florida, would always put a couple of high end items in his rental gear for people considering buying stuff, so you could really try it out. Near the end of the season he would offer the slightly used equipment to his long-term regular customers at a very reduced rate after he did a service on it. Many times that would result in buying a regulator that had been used 3 or 4 times for 20% below online pricing, so why bother with something brand new?

 

[mcm007]

I would buy all my gear from them. I have often made mention of this fact , but then again this is the same person telling me to book my dive travel through them.

Im an educated consumer. I do find some value in LDS for yearly service and gear . But all in all, they are way too overpriced.

To answer the question, I believe LDS' are required to market their products at a set price rom their distrib's

Correct me if Im wrong..

Brick and Mortar cant really be that pricey to run , 'cept for the Nitrox and air equip, are they ?

How is it LP and other cheapo internet sites can get the same product so much cheaper should be the real question.

:06:

 

[Halthron]

To answer the question, I believe LDS' are required to market their products at a set price rom their distrib's

Correct me if Im wrong..

Brick and Mortar cant really be that pricey to run , 'cept for the Nitrox and air equip, are they ?

How is it LP and other cheapo internet sites can get the same product so much cheaper should be the real question. :06:

Many manufacturers require a minimum advertised price. So, the shop can't price it for less than a certain dollar figure. However, it is illegal to require a minimum sales price on most items. What's the difference? A minimum advertised price means that regulator X will have a price sticker of $300 but if you ask and the LDS feels like it, he can sell it for $200 if he wants. With a minimum sales price (remember, this is illegal), he would have to sell it as $300.

A minimum sales price is also called PRICE FIXING and the Federal Trade Commission tends to get very interested in companies that do this.

I don't think there's a huge difference between the price that an LDS and online shops get the products at, since online shops are usually someone's LDS as well. The big ifference seems to be the amount of profit they want. An online shop tends to be willing to accept a lower percentage of profit on each sale. It seems many LDS aren't willing to reduce their percentage of profit, perferring greater profit with less inventory turnover.

 

[Diversauras]

I don't think there's a huge difference between the price that an LDS and online shops get the products at, since online shops are usually someone's LDS as well. The big ifference seems to be the amount of profit they want. An online shop tends to be willing to accept a lower percentage of profit on each sale. It seems many LDS aren't willing to reduce their percentage of profit, perferring greater profit with less inventory turnover.

I think that you are very sadly mistaken here if you think the LDS can buy 20 items at the same price the online shop buys say 2000. You might spend a season managing the books and orders for an LDS to see where the money goes, it isn't in the owner's pocket and again if you think there is any give away left at the LDS go walk a mile in their shoes.

 

[scubatoys]

Many manufacturers require a minimum advertised price. So, the shop can't price it for less than a certain dollar figure. However, it is illegal to require a minimum sales price on most items. What's the difference? A minimum advertised price means that regulator X will have a price sticker of $300 but if you ask and the LDS feels like it, he can sell it for $200 if he wants. With a minimum sales price (remember, this is illegal), he would have to sell it as $300.

A minimum sales price is also called PRICE FIXING and the Federal Trade Commission tends to get very interested in companies that do this.

Actually, a manufacturer can set a MARP (minimum advertised & retail price) on their products... that is not price fixing. Price fixing is when 5 scuba manufacturers meet in a smoke filled back room, then agree that since they are all selling about the same kind of snorkel, they should all raise the price by 3 bucks.

Or same thing with dive shops... if they get together and decide to all raise their class prices to $350... that is price fixing.

But a manufacturer saying as a dive shop, I must sell this item for this price - they have that right. Of course, very hard to police, as then what happens when that product is grouped in a package price with other items - where did the discount get applied...

 

[Halthron]

Or same thing with dive shops... if they get together and decide to all raise their class prices to $350... that is price fixing.

I stand corrected.

I think that you are very sadly mistaken here if you think the LDS can buy 20 items at the same price the online shop buys say 2000. You might spend a season managing the books and orders for an LDS to see where the money goes, it isn't in the owner's pocket and again if you think there is any give away left at the LDS go walk a mile in their shoes.

I said there's little difference between the prices that online shops & LDS can get products at, I didn't say there wasn't a difference in price if ordering radically different quantities. If two B&M shops order different quantities, the price is likely to be different as well. Also, nothing was said about expenses and you totally missed the comment that online shops tend to be someone's LDS. No one disputes the fact that a physical presence costs more than a purely online one but it seems many LDS (not all) would prefer to hope online sales will eventually go away rather than open up another avenue to customers.

 

[bgi]

We immediately contacted LP and they said since we got it wet it was ours to keep and sorry.

That's in direct conflict with LP's policy. Push them harder and they will cough up a new BC.

 

[redacted]

I think that you are very sadly mistaken here if you think the LDS can buy 20 items at the same price the online shop buys say 2000. You might spend a season managing the books and orders for an LDS to see where the money goes, it isn't in the owner's pocket and again if you think there is any give away left at the LDS go walk a mile in their shoes.

Your right.

And these shops would rather go out of business than do something like band together with other shops and do competative volume wholesale buys. I understand that may not be as easy as it sounds but we are talking survival. LDSs that are having a hard time and refuse to change their business model should make way for better businessmen.

 

[Debraw]

"An online shop tends to be willing to accept a lower percentage of profit on each sale. It seems many LDS aren't willing to reduce their percentage of profit, perferring greater profit with less inventory turnover."

Dive Shop for Sale.........Will that be check or cash?

 

[ealbert]

There is such a thing as VALUE. THe LDS I work with is awesome. They do way much more than just sales. They do trips, they do service, they have social get togethers so divers can meet. They do the training.

Like some others here, I dont mind paying a little more to have the service and support of a dealer. Plus, I have become genuine friends with everyone at the shop and I want to support them.

Someone said "Yes, all the "real stores" have unskilled imbeciles working at them!" - what a pile of crap. You're going to the wrong places. While it is true that some stores are clueless and work hard to squeeze every penny out of a customer, not all are that way. Many will try to oversell a customer equipment to make more money, the local shop I work with will talk you out of spending more money on stuff you don't relly need!

One of the results of the internet sales is that training prices for classes seem to be rising. It used to be that shops could do the training for a minimum because they knew they would sell equipment and make a profit. Now, with price pressures so strong, they are forced to charge more for the training.

Don't get me wrong, I am all for lower prices, my diving is a side hobby and I am no where close to being financially able to buy whatever I want, whenever I want.

I dont buy every single thing from them but I do try to make the larger purchases from them and help to keep them afloat. I think it is important.