Deflation in the Scuba Market

[RJP]

Other than that, I'd say that you've got the "sentimental utopian socialistic" view of capitalism, albeit from a perspective where businesses, rather than consumers, need protection from the free market.

See, there's that "us vs them" mentallity again. Consumers don't need PROTECTION from the free market... consumers PARTICIPATE in the free market. They are a market force, not a market victim.

Basically, dude, you are in a tough business, and I feel for you. I think, though, that you need to find more innovative ways to grow than hoping that manufacturers will tacitly agree to keep their prices high, and then step up advertising to persuade consumers to feel good about paying more for gear.

FYI - I'm not in the scuba business. I'm in the advertising business. (No scuba clients... currently.) In advertising we don't care what the price is. We simply endeavor to maximize demand at that price.

I'm not saying scuba industry (manufacturers, shops, resorts, etc) should set prices high and then rely on advertising to hit forecast, I'm saying that they should not focus on minimizing price and hoping for salvation, but rather they should focus on marketing their products in such a way that maximizes demand. If they do that, prices will stabilize to a level where more customers are willing to happily pay an appropriately high, yet market-driven price.

In doing that, everyone is happy.

 

[NotLloydBridges]

Don Draper couldn't have said it better.

 

[RJP]

Don Draper couldn't have said it better.

The good news is, that as long as people continue to think that advertising doesn't work on them... I'll always have a job.

 

[timegan]

Well Mike..thats cause we all have moved/switched, to the "information sector" as our new economy!!!?? oh wait ..were shipping that to India as well> never mind....back to our economic suicide...already in progress

 

[Mike Boswell]

The good news is, that as long as people continue to think that advertising doesn't work on them... I'll always have a job.

I hope so. But as I'm sure you know, there are plenty of clever, creative people who are willing to do whatever it takes to steal your job.

• They can do it for far less pay.
• They are only a mouse-click away.
• They will work all night and have the product on a client's desktop tomorrow morning, and,
• Any ad agency that is not already using them is probably doomed.

And judging by the ads I've seen, "clever and creative" would only represent a tiny fraction of one percent of advertising output.

 

[redacted]

See, there's that "us vs them" mentallity again. Consumers don't need PROTECTION from the free market... consumers PARTICIPATE in the free market. They are a market force, not a market victim.

Oops, when did we stop talking about scuba gear?

 

[ptyx]

(About buying vs rental).

Because your spouse says: I want my own wetsuit because someone pee'd in that one; I want my own regulator because it's my life support; I want my own BC because it would fit better; I want those fins so my legs don't cramp; I want my own boots or my feet will hurt; I don't want to dive tables; ...

There are perfectly good arguments for buying your own gear. I'm just saying I find it weird that many local dive shops choose to discount products they're in a privilege position to sell (gas fills, training, local trips) and try to compete head on against online retailers and travel agencies instead.

If you need to sell gear to make a profit on instruction, you're making a loss (or missing deals) on all the divers who already own gear, want to rent or go shopping online.

If my local dive shop choose to overcharge for gear, they're out. If they overcharge for fills, they probably won't loose me as a customer (the next dive shop isn't that close).

 

[Hank49]

S
I'm not saying scuba industry (manufacturers, shops, resorts, etc) should set prices high and then rely on advertising to hit forecast, I'm saying that they should not focus on minimizing price and hoping for salvation, but rather they should focus on marketing their products in such a way that maximizes demand. If they do that, prices will stabilize to a level where more customers are willing to happily pay an appropriately high, yet market-driven price.

In doing that, everyone is happy.

I rarely go into dive shops in the US. But here in Belize, which is normally very expensive with import duties on everything, including freight cost of an item, I'm finding nice masks that are US$20. I can't see any difference between them and a brand name that costs $75.
Do you think that regs and BCs may go that route? More like generic brands out of Asia at half the cost?

Or is integration in the foreseeable future? When I started in shrimp farming 33 years ago, all you needed were some ponds to put seed into. Now, you have to be fully integrated from breeding to processing or you're out of the game. Will equipment manufacturers buy up training agencies? or vice versa? Dive quarries?

 

[carrielsal]

Personally I wouldn't own a Rolex. I'd either break it or lose it.

But a $1700 dive computer? No problem ...

... Bob (Grateful Diver)

I had to make a decision last year. New Suburban or tech classes and equipment to pursue cave training. I'm still driving the old suburban.

 

[SDE Dennis]

Back to the question posted:

We are a new company so I can only say what we’ve seen. We released a new product a little over a year ago. Things started off slower than we anticipated. We feel this is due to coming to market right when the economy tanked and manufacturing in the US (this has increased costs close to double). Because of this a lot of shops that want to carry our product can't afford the cost of another item on the shelf.

A lot of dive shops that called to become dealers were due to customers coming in and asking about our product. Then still other dive shops signed up due to our ads or seeing our product at various trade shows.

Since our start we have a distribution of over 50 shops. This took a lot of work and a new product that has received a lot of interest. For us our sales have been steadily growing since spring. We feel this is due to two things. One, marketing is starting to pay off and customers are learning about our product and Two, things are starting to level off (I could be wrong on the 2nd thing).