Arnaud
Contributor
FYI, my "summer" LDS in Spain does not sell any gear and as far as I can tell, they're doing okay. They only do rentals, courses, air and boat dives. They rent brand new Mares stuff every year. Sure, their boat is not amazing, but we always have a great time.
In my opinion, LDSs in the US are just facing the same challenge than any other retail business. With the success of rec diving, the diving population has increased tremendously, resulting in a much bigger market than 20 years ago. For a long time, scuba equipment was a niche market. Prices in a niche market can't fluctuate well because low supply and demand do not offer enough of a real playing field for competition. And since prices are "regulated" by demand and supply, LDSs found themselves in non-competitive oasis. This is clearly changing.
Yet, LDSs are doing business the same way, with the same kind of margin. The Internet has allowed some legit and not so legit business to compete, tap into that market and bring the prices down.
I think it won't be long until we see sporting goods store chains getting into the arena, applying low margin because they sell volume and forcing, in turn, manufacturers to stop the kind of price gauging that's going on.
In short, the market has changed. LDS will have to adapt or will disappear, just like most retails are disappearing.
In my opinion, LDSs in the US are just facing the same challenge than any other retail business. With the success of rec diving, the diving population has increased tremendously, resulting in a much bigger market than 20 years ago. For a long time, scuba equipment was a niche market. Prices in a niche market can't fluctuate well because low supply and demand do not offer enough of a real playing field for competition. And since prices are "regulated" by demand and supply, LDSs found themselves in non-competitive oasis. This is clearly changing.
Yet, LDSs are doing business the same way, with the same kind of margin. The Internet has allowed some legit and not so legit business to compete, tap into that market and bring the prices down.
I think it won't be long until we see sporting goods store chains getting into the arena, applying low margin because they sell volume and forcing, in turn, manufacturers to stop the kind of price gauging that's going on.
In short, the market has changed. LDS will have to adapt or will disappear, just like most retails are disappearing.