It probably has roughly the same mark up as anything else. Do you think a large soda at Burger King costs anywhere near 3 bucks? Try golf equipment, skis, televisions, etc.
How Much Mark Up Really On Scuba Gear???
- Thread starter theduckguru
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Thalassamania has it pegged pretty accurately from what I've seen
dkktsunami
Contributor
Who cares? The questions should be: "How much is this gear worth to me?" "How does it compare in price and quality to similar gear offered in the market place?"
In most retail, this is called the Margin %
manni-yunk
Contributor
You nailed it on the head.
I am an investor (1/3 owner) in a large retail appliance/electronics/kitchen cabinet store. Higher end and bigger names are "protected" and enforce minimum sales price (note-different than MAP)- so everyone gets around this by giving free delivery/hookup/accessories)
Basically - the store wants to walk away with about 30 pts if possible but usually falls down to closer to 20.
But - depending on the manufacrurer and buying groups involved, there is also anywhere between 2 and 10% on the backend as well.
And yes - the accessory items are big time money makers.
rrweather
Guest
I always laugh at the way us Americans think. We ALWAYS want to pay bottom dollar for the items we purchase, hence the Walmart and Costco type stores. When it comes to what we're paid, it is the complete opposite; we accept nothing but top dollar for our work. An economy can not survive if every member of society gets paid top dollar for the work they do while having the opportunity to buy goods for as little as possible. Why do you think the "Mom and Pop" stores go out of business every day.
What makes me laugh about the people that complain about the markup of the LDS is that no one ever complains about the markup of the manufacturer. No one ever complains about the markup of the manufacturer of the materials used to make the goods. It all falls on the LDS because this is the person that the consumer interacts with. Let's say your LDS sells a mask for $80. It is possible that the mask cost him +/- $40 to buy and have delivered. It is further possible that the mask cost the manufacturer +/- $20 to build. It is even further possible that the rubber and glass used to build the mask cost +/- $10 for the manufacturer of these materials. So, under these estimates, there is a +/- 100% markup from rough materials through you taking the mask home. Why is it fair that only the LDS sell for less than a 100% markup? When you walk into a store, you don't hear the LDS complain about the 100% markup SP or Oceanic makes. You don't hear the LDS complain about the fact that the rubber and glass company makes 100% markup on its sales. Do you honestly think the LDS is the only store in the country selling products for a 100% markup? The car you drive is nothing more than raw materials put into useful form, why should Toyota or Ford make such a profit for simply putting the materials together?
I've purchased a lot of items through my LDS and a lot of items from online sellers. I try to buy locally when I can. Sometimes he can't get what I want and sometimes his prices are just too high. I always try to figure out what the TOTAL VALUE IS FOR ME. Case in point, my LDS is willing to take you diving in the pool or in OW with any product you buy. Their theory is that they can't sell you a piece of equipment and not show you how to use it. This may not amount to much with a snorkel but with something like a drysuit, this might be big. I know of no online retailer that will give you free drysuit diving instruction. Another benefit, my LDS lets people set up payment plans. This isn't layaway where you get the product when you are done paying for it. Instead, you take it home and dive with it before you completely own it. I challenge you to do that with an online retailer. I'm not slamming the online guys because I've purchased from them; I'm simply trying to make a point that there may be more to your LDS than the prices of what they sell.
Another example of this is the last time I bought tires. The local tire shop had the best prices. Another store's prices were a little higher but included free lifetime rotations. The rotations represented value to me. That value outweighed the slightly higher prices. I purchased from the second store. It wouldn't be appropriate for me to purchase the tires from the first store but expect free rotations from the second store.
You can't compare the business models and pricing of a "brick and mortar store" to an online retailer. An online retailer will spend significantly more money keeping their website running smoothly while a LDS will spend more money keeping the shop ready for customers. Just because they sell the same products, they go about it two different ways. A grocery store and a restaurant both sell food; yet, you wouldn't expect the restaurant's prices on food to be the same as the grocery store.
For people bitching about the markup or prices of their LDS, don't buy locally. Keep shopping online. Just don't expect the overall service your LDS offers unless you are willing to pay what they ask. If your LDS doesn't offer any additional value for the additional cost, buy online or find a new shop. If getting a product at bottom dollar is most important, buy online. If your LDS offers value THAT YOU DEEM WORTHY AND MEASURABLE through product or service, buy local. I really don't think your LDS cares if you shop from them. Just don't go in and bitch about their prices while wanting their expertise or service.
What makes me laugh about the people that complain about the markup of the LDS is that no one ever complains about the markup of the manufacturer. No one ever complains about the markup of the manufacturer of the materials used to make the goods. It all falls on the LDS because this is the person that the consumer interacts with. Let's say your LDS sells a mask for $80. It is possible that the mask cost him +/- $40 to buy and have delivered. It is further possible that the mask cost the manufacturer +/- $20 to build. It is even further possible that the rubber and glass used to build the mask cost +/- $10 for the manufacturer of these materials. So, under these estimates, there is a +/- 100% markup from rough materials through you taking the mask home. Why is it fair that only the LDS sell for less than a 100% markup? When you walk into a store, you don't hear the LDS complain about the 100% markup SP or Oceanic makes. You don't hear the LDS complain about the fact that the rubber and glass company makes 100% markup on its sales. Do you honestly think the LDS is the only store in the country selling products for a 100% markup? The car you drive is nothing more than raw materials put into useful form, why should Toyota or Ford make such a profit for simply putting the materials together?
I've purchased a lot of items through my LDS and a lot of items from online sellers. I try to buy locally when I can. Sometimes he can't get what I want and sometimes his prices are just too high. I always try to figure out what the TOTAL VALUE IS FOR ME. Case in point, my LDS is willing to take you diving in the pool or in OW with any product you buy. Their theory is that they can't sell you a piece of equipment and not show you how to use it. This may not amount to much with a snorkel but with something like a drysuit, this might be big. I know of no online retailer that will give you free drysuit diving instruction. Another benefit, my LDS lets people set up payment plans. This isn't layaway where you get the product when you are done paying for it. Instead, you take it home and dive with it before you completely own it. I challenge you to do that with an online retailer. I'm not slamming the online guys because I've purchased from them; I'm simply trying to make a point that there may be more to your LDS than the prices of what they sell.
Another example of this is the last time I bought tires. The local tire shop had the best prices. Another store's prices were a little higher but included free lifetime rotations. The rotations represented value to me. That value outweighed the slightly higher prices. I purchased from the second store. It wouldn't be appropriate for me to purchase the tires from the first store but expect free rotations from the second store.
You can't compare the business models and pricing of a "brick and mortar store" to an online retailer. An online retailer will spend significantly more money keeping their website running smoothly while a LDS will spend more money keeping the shop ready for customers. Just because they sell the same products, they go about it two different ways. A grocery store and a restaurant both sell food; yet, you wouldn't expect the restaurant's prices on food to be the same as the grocery store.
For people bitching about the markup or prices of their LDS, don't buy locally. Keep shopping online. Just don't expect the overall service your LDS offers unless you are willing to pay what they ask. If your LDS doesn't offer any additional value for the additional cost, buy online or find a new shop. If getting a product at bottom dollar is most important, buy online. If your LDS offers value THAT YOU DEEM WORTHY AND MEASURABLE through product or service, buy local. I really don't think your LDS cares if you shop from them. Just don't go in and bitch about their prices while wanting their expertise or service.
manni-yunk
Contributor
The brick and mortar is significantly more expensive to run. Any way you cut it, in any industry. AND- the core demographic of the brick and mortar is limited by a specific goegraphy where the online retailer is virtually unlimited in geographic scope.
Then there is advertising - most online advertising is paid for hits generated. Each hit might not become a sale, but at least they were on your site. Brick and mortar is more spray and pray- yes you can focus on certain publications, etc - but in general it isnt as focused as the way the net allows you to operate. Imagine if you could pay for an ad basedon how many people actually walk through your door!
In general, its easy to see why online prices are less.
BTW - Im getting ready to purchase a lot of gear and it will all be from the LDS that certified me even though I know the package will cost me 300 less online. The service I will get from the LDS will make up for that in my eyes. However, there is a point of diminishing returns on the cost delta - if it were half price online vs lds, I might have decided to buy online.
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