Now all that being said, an LDS must make a substantial level of profit off the majority of their items. That is because, no matter how myopic your visions of diving dominance, diving is a niche activity that will never in the near term appeal to even high single digit portion of the adult population. Add to that the fact that most divers keep their diving equipment for years and years (lack of product cycling and that "volume" you so proudly speak of), and the LDS must somehow pay the bills and their "fiduciary responsibility to their family". Lessons don't pay the bills, nor do air fills. Lessons are a lost leader to generate equipment sales. Sales that are a 5 to 10 year replacement cycle ( and that is if you are able to provide enough local incentive i.e. charter boats, diving trips, club meetings etc.to keep people interested in diving). I can't tell you how many (the majority) of my friends, employees and acquaintances that tried diving (generally on vacation) that really have no interest in regular or even occasional local diving. That necessitates that in order to survive, your LDS has to sell at a price that will achieve break-even based on average monthly sales volumes. That price will always be more than the "lowest internet price".
Scubatoys, Scuba.com are the exception, not the rule. Most of the LDS around the country are mom and pops. They are not in a major metropolitan market to substain their brick & mortar via any sense of "volume". Note - Minnesota is not their home base.
I am not bashing internet sellers. I applaud their efforts in addressing a market demand. However, the same truism holds true for their survivability - If overall market LDS cease to exist or decline greatly in number they will lose new and existing customer base and see dwindling returns to the point of abandoning the market due to lack of a minimum level of purchasing activity.
LDS market health is the single most important factor in the health and growth of the scuba diving market. My ***** is with you cheap jack***** who buy everything on-line because you are too cheap to pay even a few bucks more to support a local shop. Hey if you have a bad LDS, by all means don't support his business. But stop your ignorant misleading statements that just because the guy can't sell for the lowest price that makes him a "bad LDS".