Major Industry Change re: Online Scuba Sales....

[lamont]

Once Atomic announces an internet program this fall...

interesting. because of their business practices i've been having to buy grey market atomic regs, it would be nice to see this change...

 

[MikeFerrara]

It is such a shame the world is coming to this money for nothing and cheaper is better attitude. Do you buy your groceries on line? Lets all start doing that and push the local grocery stores out too. What started out as a good information source has turned into a beast for get rich people for nothing that are not willing to put in a little old fashon hard work and the cheap consumers have fallen for the bait.

I was dragged into online shopping kicking and screaming. I didn't have a choice but now I wouldn't have it any other way. I rarely go into a real store anymore and I buy many many things that I couldn't get locally even if I wanted to.

All my work supplies are baught online (sometimes I order over the phone). It's great, I can get anything I want and I don't have to go out of my way or lose work time. I have trouble getting lots of hardware, tools, materials like steel and even clothes locally. Now I know better than to spend several evenings or a whole Saturday driving to every store around looking for something that they likely don't have anyway. I go to the frige, crack a beer and sit down at the computer to shop. I can buy exotic woods for knife handles, scuba gear, business supplies and tool steel faster than I can drink that beer and...I can drink a beer while I do it and...I can do it at anytime of the day or night. No gas gets burned, no wear and tear on the car, no traffic, no carts banging into my car and I don't even have to wear shoes and a shirt. LOL

The closest dive shop is about 60 miles away. The place has a new owner and I've been wanting to stop in there for months now. Their hours don't work for me and they're 60 miles in a direction that I never go. I may never get there. There isn't much scuba equipment that I need to see, handle or try on before buying so why would I want to take time away from other things and drive over an hour to get there?

So...it's not really a matter of being cheap. It's about being able to use all of your resources to the best of your advantage. By shopping on line or even by phone, I have access to a far greater selection, in less time, for less trouble and sometimes at better prices than I can get my getting in my car and heading out to shop for something.

 

[PerroneFord]

But.... how will you get fills?

 

[MXGratefulDiver]

But.... how will you get fills?

That, for me, is one tough issue.

I can afford a scooter or a RIX ... which will it be ...

... Bob (Grateful Diver)

 

[PerroneFord]

I thought all you PacWesterners were wealthy? We're just poor country folk down here.

 

[JeffG]

That, for me, is one tough issue.

I can afford a scooter or a RIX ... which will it be ...

... Bob (Grateful Diver)

Scooter first, RIX second.

 

[Firefyter]

But.... how will you get fills?

Get your Internet Fills here

 

[BOOM BOOM]

Ok, Dive shop for sale , All inventory ,website, and I will cover the costs of the Dema Padi seminar on how you will make it all work.

SERIOUS ! I will start with a 150 K offers

Just think of all the cheap gear you can buy then. or maybe a new outlet for some of you huge on-line sales guys .

pm me your bids , Heck I may try ebay aswell.

 

[TeddyDiver]

But.... how will you get fills?

Buy a compressor? Join local vol FD?
Around here the closest reteiler is 300miles away, and it's a kind of garage LDS (only some items and space for maintenance), so everything has to be ordered from elsewhere, so for me it's irrelevant where the stuff comes from.

 

[PhilEllis]

I'm a simple guy here Phil, break it down for me.

The first order of preservation as far as Padi is concerned, is Padi.

This is as it should be.

My thoughts are that Padi's little brother and cheap labour is the LDS.

Padi also knows that the LDS can'tmake ends meet on the price of the courses, and that's not going to change overnight.

I can't imagine Padi would knife their brother, thereby hurting themselves, by endorsing internet GEAR sales which would in the end see a whole pile of LDS hurting even more than they are already.

I just don't see it.

There would have to be something on the gear side of things for the LDS, IE allow discounting etc...........bascially allowing the LDS to set their own prices and advert it as such.

Help me out here Phil.

EDIT: As Terry says below, I just don't see the connection.

Oh, I think I can help you a great deal...............

You start with the assumption that a local dive store moving to internet sales would result in damage to the local scuba store. You are wrong almost completely in that assumption. The local dive store DOING NOTHING and letting divesports.com, scubatoys, scuba.com, leisurepro, crazyscuba, and whoever else continue to erode their market share, eventually they won't simply be harmed......they will be bankrupt! Now, as dive stores move to the new mixed business model, some of them will fail. Of that there is no doubt. But without the move, ALL (or almost all) of them will fail!

Next. I believe you are thinking that PADI offers a service. Maybe that PADI is a scuba training company. That is totally wrong. PADI is a wholesale goods manufacturer and supplier to the scuba retailers...........the local scuba store (including those with internet operations). Let's take a look at the things they provide at wholesale to this industry........training material kits, text books, badges, PIC envelopes, and a variety of other things. Their prospects rise and fall with the retail sales in their dealer base.....the PADI IRRC store members. PADI realizes (as does Aqua Lung, Oceanic, Dive Rite, ScubaPro, Apollo, and all of the rest) that they need a strong dealer base if they expect to capture market share with their product. THEY KNOW WHAT I HAVE BEEN SAYING ON MANY POSTS HERE ON SCUBABOARD! The end is getting closer and closer for the business model upon which the local store relies. PADI will prosper ONLY when the local store prospers.

A little side bar to this story.......I heard this from a reputable source, but honestly cannot remember who, so forgive if the statistics are not exact.......of all active PADI instructors, only about 22% of them are employed by or affiliated directly with, a PADI IIRC store....the remainer teach independently and secure students through their own methods. PADI IIRC stores account for over 80% of all certifications issued each year. In other words, instructors teaching independent of a store affiliation (most instructors) teach VERY FEW STUDENTS and sell very little PADI stuff! The majority of the volume PADI experiences come as a direct result of the IIRC stores. Back to the topic....

The major scuba equipment manufacturers look at PADI and only see a reflection of themselves. Just like PADI, as wholesale good suppliers, they are completely dependent on the dealer base for movement of their product and for gains or losses in market share. As previously stated, PADI realizes that the business model of the local scuba store is rapidly failing. They will encourage the local scuba store to change their business model so THEY THEMSELVES can survive! It is very simple.

Now, how does PADI influence the major scuba manufacturers? Well, PADI was started by previous employees from US DIVERS (Aqua Lung). There is a tremendous amount of cross-pollination between the scuba equipment manufactures and the training agencies......at least the one's large enough to matter. They think very much alike. They are constantly promoting programs together.......take a PADI class, get some discount certificates for Aqua Lung and ScubaPro merchandise....buy a regulator set, get $50 off certificate on your next continuing education class from PADI. Finally, the scuba manufacturers have a GREAT DEAL OF RESPECT for PADI. And they well should. Regardless of what we think of them, who among us can name many companies as successful in thier own markets. PADI has amassed an amazing market share. All of the scuba manufacturers would LOVE to be in their position. So, when PADI speaks, the ALL listen. When PADI says "hey, maybe our dealers should really look closely at this on-line scuba store option", there will be lots of presidents and vice-presidents calling their staffs together and starting a conversation. I don't say this casually....I am serious......as PADI goes, so goes the scuba diving industry.

Anyway, I hope this helps. Of course, since this is just my opinion, I could be completely wrong.

Phil Ellis