And another sale gone, another one down... another one bites the dust!

[SMKChef]

norcaldiver once bubbled...


But how about this for example, I'll give you a deal, but you give me a tip, let's just add on anywhere from 8 to 15% of the total - for the time I take to help you get fitted for a BC, and running back and forth to the stockroom, and explaining pros and cons of each one, and answering your questions to the best of my knowledge or going to the books and finding all the specs between the 2 models that you're looking for. I mean, you tip the DM or the boat captain, right? you tip waiters and waitresses for doing the running of your food....

Granted not every shops is helpfull, but what about the guys that are?

Tips come in the form of "Service Charges" just like they do at travel agencies now. Many of the airlines stopped giving commissions on sales at agencies because they were selling so well over the net without having to pay back commissions. Now, to survive, Travel Agencies charge a service fee for their travel "expertise." Customers aren't too happy but they still use TAs and pay the fee. Many people purchase their airline tickets on line, but still some use TAs. You go to a TA for their expertise in planning a trip. You use the net to buy tickets without help.

Have you had an event catered lately? We charge a 18% service charge that covers the costs of cleaning linens, washing the plates, setting the room, etc. You think people are happy about that little fee on top of their meal price? No, but they want the service, they pay. If they didn't, they would have their party at home.

Service Fees are a normal part of business. If you want service, you pay for it. If you want to buy your reg on line without the "expertise" of an LDS you should have that ability.

BTW, in the PC world, they are called "Servers". Same as Stewardesses are now "Flight Attendants".

 

[cmay]

awap once bubbled...


Because "helpful" doesn't make too many people go too far out of their way. So the price constraints keep the field nice and level where both the good LDS and the bad LDS can almost eak out a living. If they were allowed to compete, good LDS's which operate with good business practices would be able to put bad LDS out of business. Then good LDS could be rewarded with volume business and could actually begin to compete with Leisurepro.

No, actually you would just start a price war that would quickly get out of hand with all the shops losing out in the end. There were two shops here where I live, now there are none. Everyone now has to drive 30 miles for air, or whatever else they need.

 

[metridium]

cmay wrote...


No, actually you would just start a price war that would quickly get out of hand with all the shops losing out in the end. There were two shops here where I live, now there are none. Everyone now has to drive 30 miles for air, or whatever else they need.

If they had those price restraints, how did they get into such a devastating price war?

 

[norcaldiver]

metridium once bubbled...
With sufficient volume, you can haggle over practically anything.

But that does go both ways tho. So to take the other side of that coin for fun.....If a shop sells 100 BCs a day and you come in and ask for a price, couldn't the guys say "ya know take it or leave it, I sell these all day, if you don't get it someone else will" Sufficient volume = he desn't have to give you a break if he doesn't want to.

 

[cmay]

It was probally six years ago, and I do not remember any of these type of price restraints back then.

 

[metridium]

cmay wrote...
It was probally six years ago, and I do not remember any of these type of price restraints back then.

Don't know about other brands, but the Scubapro minimums were in place back then.

 

[SMKChef]

I was just wondering. You don't have to tell us any numbers or percentages, but if you have sufficient volume on any brand of equipment can you haggle with the distributor over your cost on goods? Or is it a "take it or leave it" business? How are you treated by the distributors? Do they work as a team with you?

I know about food and in this business, pricing is variable. It depends on a company's size, their purchase history, how well they get along with their rep. who is making a commission on his sales to them. You won't get rock bottom pricing every day on every item but it all works out in the end.

 

[Popeye]

SMKChef once bubbled...
I was just wondering. You don't have to tell us any numbers or percentages, but if you have sufficient volume on any brand of equipment can you haggle with the distributor over your cost on goods? Or is it a "take it or leave it" business? How are you treated by the distributors? Do they work as a team with you?

I know about food and in this business, pricing is variable. It depends on a company's size, their purchase history, how well they get along with their rep. who is making a commission on his sales to them. You won't get rock bottom pricing every day on every item but it all works out in the end.

Just as a related point, I know my LDS gets discounts for volume orders. I don't think they can haggle, but it's one reason why certain trivial items don't appear overnight, as he lets an order build up.

 

[SMKChef]

norcaldiver once bubbled...


But that does go both ways tho. So to take the other side of that coin for fun.....If a shop sells 100 BCs a day and you come in and ask for a price, couldn't the guys say "ya know take it or leave it, I sell these all day, if you don't get it someone else will" Sufficient volume = he desn't have to give you a break if he doesn't want to.

Isn't that how Walmart became the biggest retailer in the WORLD?? By cutting prices lower than everyone else? Selling volume.

McDonald's doesn't get rich on burger sales. They are sold at tight margin. But buy a fountain drink and you are putting cash in their pockets.

And for all the business majors out there. Doesn't pricing follow along with "what the market will bear?" You can't sell a Pontiac for $45,000. but put a Cadillac badge on it and all of a sudden you can sell it for that price. So ScubaPro in America has such a reputation that their sales match their pricing. Maybe they should rebadge their regs, call them ScubaRuba and sell them for discount.

 

[cmay]

metridium once bubbled...
Don't know about other brands, but the Scubapro minimums were in place back then.

These were not Scuba Pro. I worked in a shop while in college and I don't remember us having our price restricted in any way.

To answer your queston SMKChef, there were different "tiers" of pricing based on how much gear you bought. I think your tier was determined by prior year purchases. And yes, these prices were very firm.