Aggregate sales quotas.

[Eric Sedletzky]

My dive shop was telling me about Scubapro’s aggregate sales quotas every month. I knew there was a quota system but I didn’t realize how harsh their policies are; if a shop falls short they pull their dealership status and they can’t buy anything including parts. Then, if the shop wants to reinstate their dealership status the reinstitution fee is 25% more than what their monthly quota was. That just seems really draconian and bullyish to me. What if an area just can’t support the sales numbers they’re requiring?
Dive shops are already struggling in a sport that’s struggling to maintain participation. And it seems the quotas are creeping up.
Why would a manufacturing company shoot themselves in the foot like this? I would think they should be happy with anything they can get.

 

[BoltSnap]

My dive shop was telling me about Scubapro’s aggregate sales quotas every month. I knew there was a quota system but I didn’t realize how harsh their policies are; if a shop falls short they pull their dealership status and they can’t buy anything including parts. Then, if the shop wants to reinstate their dealership status the reinstitution fee is 25% more than what their monthly quota was. That just seems really draconian and bullyish to me. What if an area just can’t support the sales numbers they’re requiring?
Dive shops are already struggling in a sport that’s struggling to maintain participation. And it seems the quotas are creeping up.
Why would a manufacturing company shoot themselves in the foot like this? I would think they should be happy with anything they can get.

That is NOT what I know at all. There is a multi-tired system based on annual sales volume. They will have a serious talk with you if you become a dealer then don't sell much (I mean not much) but no monthly targets or any of the stuff you mention at all. They are actually a very loyal and helpful vendor.

 

[Eric Sedletzky]

That is NOT what I know at all. There is a multi-tired system based on annual sales volume. They will have a serious talk with you if you become a dealer then don't sell much (I mean not much) but no monthly targets or any of the stuff you mention at all. They are actually a very loyal and helpful vendor.

Well they must have some sort of target amount if you say they will have a serious talk with you if you “Don’t sell much (I mean not much)”.
They must have a quota amount then.
I don’t think this dive shop was lying to me or making this up.

 

[BoltSnap]

Annual buying volume. There s a minimum annual volume with minimum discount and if you commit to doing more, you get more discount based on your annual volume. If you become a dealer and don't do the minimum annual, or close to it, they will have a talk with you and see what the issue is but they won't cut you off just for falling short. If you are a SP and AL dealer, for example and they see you doing 10's of thousands with AL and only do 2K a year with SP, they are going to have an issue with that and will talk with you about it. ALL big vendors want the dealer to represent all or most of the line and not just be cherry picking a certain product or a product category and ignoring everything else. They want to make sure that you a serious professional who will represent the brand in a professional manner and commit to it. Their annual demands aren't that big anyways, perhaps around 10K$ a year or very close to it (wholesale prices). They don't want a person selling out of his home's basement and not offer full service to his clients with professional storefront and proper business license. SP isn't much stricter in this regard than other brand name vendors. Scubapro is definitely is the most demanding vendor to open you up as a dealer no doubt but once they accept you, you are then part of a family. You will find that the greater majority of SP dealers have been SP dealers for decades around the world, loyalty comes from both sides, vendor and dealer. SP takes into consideration also the location of the dealer, a dealer in NYC vs. a dealer in the middle of nowhere America. They are good people in general with reasonable demands. They aren't out to get you. On the other hand, I have come across vendors with very niche product and very small market who make more annual volume demands on the dealer than SP. Not professional and very opportunistic.

 

[lexvil]

If the local guy wants to increase volume they can offer deep discounts, do a 10% mark up rather than 110% and just let the word filter around…

 

[BoltSnap]

do a 10% mark up rather than 110% and just let the word filter around…

There is No 110% with SP. SP has the lowest profit margin for its dealers. Other companies grossly inflate the suggested retail price so that their dealer can appear to offer huge discounts while making a fantastic margins, better than SP margins, but SP doesn't play these games at all. SP dealers sell at full list and still make much less profit than the other M or A brand dealers who offer deep discounts yet still make a big profit. No Micky mouse BS with SP.

 

[Johnoly]

....They don't want a person selling out of his home's basement and not offer full service to his clients with professional storefront...

You would not believe some of the 'authorized dealer' locations I've seen, lol ! Mfg-Reps reading this thread are smiling cause they have a book of stories they could tell.....but won't.

 

[lexvil]

There is No 110% with SP. SP has the lowest profit margin for its dealers. Other companies grossly inflate the suggested retail price so that their dealer can appear to offer huge discounts while making a fantastic margins, better than SP margins, but SP doesn't play these games at all. SP dealers sell at full list and still make much less profit than the other M or A brand dealers who offer deep discounts yet still make a big profit. No Micky mouse BS with SP.

Well, hydros in Aus. Less the $400 and here in the US close to $1000, as you pointed out in another post here is the US we pay more, a lot more I like most of their stuff but…

 

[BoltSnap]

Well, hydros in Aus. Less the $400 and here in the US close to $1000, as you pointed out in another post here is the US we pay more, a lot more I like most of their stuff but…

SP has different dealer pricing and different retail prices depending where you are in the world. the dealer in the US doesn't make more profit than a dealer in the poor countries in Asia. It is probably around the same.

 

[lexvil]

SP has different dealer pricing and different retail prices depending where you are in the world. the dealer in the US doesn't make more profit than a dealer in the poor countries in Asia. It is probably around the same.

So all the extra profit goes to the corporation?