djhall once bubbled...
Small dive shop ecconomics are a total mystery to me. I cannot understand how small LDSs can compete in any way with online and large scale retailers. For example, wholesale cost on ScubaPro MK25/S550 regulators is about $225. LeisurePro sells them online for $265, which translates into a markup of ~$40 per regulator. How many regulators can a small shop sell in a week? Not very many, I would think. I would assume the ecconomics on other items are similar. Against that, the LDS has massive inventory costs if they try to maintain any kind of selection, along with the cost of a storefront, insurance, utilities, employees, etc. I don't see how anyone, other than a large retailer, can possibly survive on that kind of margin. "Freebies" won't help here, because the "freebie" either isn't really valuable or simply reduces the shops profit through another method (ie. getting around pricing restrictions).
Two observations from this perspective:
First, it seems that many LDSs respond to this pressure by taking the position that they provide a valuable service beyond simply ordering and supplying gear. Depending on the shop, this may be true. And, depending on the customer, customers may be willing to pay more for those services. A true win-win situation for everyone. BUT, some shops DO seem to develop an attitude that THEY are doing YOU the service by selling you gear at high markup, and YOU are the problem if you don't feel they deserve it. I believe this attitude is the main reason people are treated poorly because they purchased equipment somewhere else. Of course, on the flip side, the shop doesn't OWE you service with a smile, either. I suppose, the shop could always tell you to take your gear for servicing somewhere else if you don't like the service. I don't find the frustration behind the "I don't need my LDS, they need me - I hate not having a great LDS" comments all that strange. They are just upset that they can't buy only the services they want from the LDS without the added guilt trip.
Second, what would happen if dive shops and the dive industry evolved to compete in the areas in which it is ecconomical for them to do so? It seems that stock gear is most ecconomically provided through order sales and large retailers serving large populations. When you decide you need a new regulator, is it really that inconvenient to buy one from LeisurePro? If you want to try a new BC, why not drive the hour or two to the nearest large city to purchase from a decent selection at reasonable prices? Why should a dealer need to invest tens of thousands of dollars to carry multiple brands & lines of dry suits in every stock size? Can't manufacturers sell dealers inexpensive sizing suits that are not expensive functional models, but simply a representation of the fit? Why not find a sizing suit that fits and order the real thing? On the other hand, who wants to send their gear away for servicing, to order a nitrox certification online, to ship tanks in for filling, or a million other mostly service and rental related issues? Why don't many snall LDSs simply loose the overhead and expense involved in gear sales, cut their costs dramatically, and operate as high quality service and instructional outlets? I would love a dive shop that only provided instruction, dive trips, service and repair for any brand of gear from any source, refurbishing of gear purchased on eBay, tank fills, rental gear, and advice on where to go to purchase gear inexpensively. All you would need is a filling station, classroom, and repair shop with parts stock. Am I missing something here?
Oh well... just my two cents.
