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jwdiverdude:2.) They go to dealers and propositions them to buy a more of a product then they typically sell in a year and filter the gear to them at cost. His example was they got to Bob's dive-o-rama and ask bob how many Apeks regs he sells in a year. Bob says 20. they then asks Bob to buy 60 Apeks regs and they will take 35 of those regs but pay Bob for 40. They gets their inventory and Bob gets 5 extra regs that he can sell for pure profit.
Just to put that in prespective, a shop I do business with pick up an new major line of gear. A couple weeks later, he got a call from Leisurepro with a $1,000,000.00 offer. Yes, that's 6 zeros to the left of the decimal point. He would purchase and transfer to LP $900,000.00 over 3 years and pocket the other $100,000.00 for his trouble. That also would have made him a high volume dealer which would have got him the maximum wholesale discount for his own sales.
The smaller shops are telling the truth when they claim that some of LP's prices are lower than the wholesale price they pay for the gear they sell.