Aggregate sales quotas.

[BoltSnap]

So all the extra profit goes to the corporation?

I don't know the details or all of the real information but it isn't "extra" profit, it is simply: profit vs. much less profit depending on the region. It is either they can sell in one region or not. Take the Philippines and neighboring countries for example, they are very weak local economy yet very popular diving area. They had to lower their prices for that region to stay in the market. Some other countries that have better economies, Aus and NZ, benefited even though they have better economies. I don't have the full understanding nor the full information to be able to give you a better and more accurate picture, but SP isn't making a whole lot of "extra profit" in the US, it is just making less in other areas to stay in the market in these areas AFAIK.

SP is one of the, if not the, best managed big international dive equipment manufacturers in the world and they appear to know what they are doing. It is a profitable company in contrast to AL for example.

 

[lexvil]

I don't know the details or all of the real information but it isn't "extra" profit, it is more profit vs. much less profit depending on the region. It is either they can sell in one region or not. Take the Philippines and neighboring countries for example, they are very weak local economy yet very popular diving area. They had to lower their prices for that region to stay in the market. Some other countries that have better economy, Aus and NZ, benefited even though they have better economy. I don't have the full understanding nor the full information to be able to give you a better and accurate picture but SP isn't making a whole lot of "extra profit" in the US, it is just making less in other areas to stay in the market in these areas AFAIK.

SP is one of the, if not the, best managed big international dive equipment manufacturers in the world and they appear to know what they are doing. It s a profitable company in contrast to AL for example.

Profit none the less, they don’t sell at a loss.

 

[Marie13]

A friend who works at a dive shop elsewhere told me that in 2021, SP wanted to pull their dealership because they didn’t make the $10K sales requirement. They had thousands of dollars in back orders. SP was out of so many items then that orders weren’t getting filled. Due to the unique situation with the pandemic, SP relented.

 

[Eric Sedletzky]

A friend who works at a dive shop elsewhere told me that in 2021, SP wanted to pull their dealership because they didn’t make the $10K sales requirement. They had thousands of dollars in back orders. SP was out of so many items then that orders weren’t getting filled. Due to the unique situation with the pandemic, SP relented.

See, this is what I don’t understand. So lets say the dive shop only sells SP stuff, nothing else, and aggregate sales for the month come to $9900, and that’s on a good month. Lets say the area just can’t support more sales of dive equipment. So SP is going to cut off their only outlet in that area and chop off their toe, why?
What do they expect the dive shop to do, make people buy stuff at gunpoint?
Talk about trying to bleed a turnip!

 

[BoltSnap]

See, this is what I don’t understand. So lets say the dive shop only sells SP stuff, nothing else, and aggregate sales for the month come to $9900, and that’s on a good month. Lets say the area just can’t support more sales of dive equipment. So SP is going to cut off their only outlet in that area and chop off their toe, why?
What do they expect the dive shop to do, make people buy stuff at gunpoint?
Talk about trying to bleed a turnip!

Sales volume is "annual" not monthly. And SP won't cut a dealer off automatically just because the dealer came short. There is a huge difference between doing $9k, or even $7K, and doing $2k.

 

[Eric Sedletzky]

Sales volume is "annual" not monthly. And SP won't cut a dealer off automatically just because the dealer came short. There is a huge difference between doing $9k, or even $7K, and doing $2k.

You sure about that? That is not what the owner of my LDS told me, not even close. It’s monthly not annual. And the monthly quota is much higher than any number you have posted.
I also have a good friend who opened a dive shop in another state and he too was an SP dealer. He mentioned the same thing, and in fact they did cut him off because his sales were not high enough. He contacted AL and at that time they would sell him whatever he wanted with no monthly quota. Yes, MONTHLY quota.
He also told me that SP wants shops to sell at MSRP which is 110%, but they are allowed to discount 10% maximum if they want which means a 100% markup. And if they catch a shop discounting further that is also grounds for pulling their dealership status. They also can and will pull a shops dealership status if they catch them selling parts to another shop that is not an authorized SP dealer/repair facility regardless of their SP experience.

If SP has the same MSRP policy throughout the world, then why are they selling something to shop wholesale in Europe for $250 and that exact same product here wholesale for $500? Where is the extra $250 going? That doesn’t sound very fair to me!

 

[Marie13]

See, this is what I don’t understand. So lets say the dive shop only sells SP stuff, nothing else, and aggregate sales for the month come to $9900, and that’s on a good month. Lets say the area just can’t support more sales of dive equipment. So SP is going to cut off their only outlet in that area and chop off their toe, why?
What do they expect the dive shop to do, make people buy stuff at gunpoint?
Talk about trying to bleed a turnip!

I was told this shop had to sell $10K per year. They had orders for that much, but SP couldn’t fill the the orders due to the supply chain issues.

 

[BoltSnap]

You sure about that? That is not what the owner of my LDS told me, not even close. It’s monthly not annual. And the monthly quota is much higher than any number you have posted.
I also have a good friend who opened a dive shop in another state and he too was an SP dealer. He mentioned the same thing, and in fact they did cut him off because his sales were not high enough. He contacted AL and at that time they would sell him whatever he wanted with no monthly quota. Yes, MONTHLY quota.
He also told me that SP wants shops to sell at MSRP which is 110%, but they are allowed to discount 10% maximum if they want which means a 100% markup. And if they catch a shop discounting further that is also grounds for pulling their dealership status. They also can and will pull a shops dealership status if they catch them selling parts to another shop that is not an authorized SP dealer/repair facility regardless of their SP experience.

$10k a month /$120K A YEAR?? LOOOOOL

Right, sure.

 

[BoltSnap]

If SP has the same MSRP policy throughout the world

They most definitely don't!

 

[Eric Sedletzky]

$10k a month /$120K A YEAR?? LOOOOOL

Right, sure.

More than that.