Aqualung's war with Online Consumers

[illFisch]

I've got a question. It's my understanding that when you buy graymarket equipment it will be in a factory box but without the warranty card. Is that right?

If so, who removes the card? I can't imaging the company packing the boxes saying "This one goes to retail, put in a card. This one goes to graymarket, don't put in a warranty card". If they did then someone, at this point in the process, knows exactly which box goes where. I would imagine that they are all boxed with cards at the time of manufacture.

I suspect the cards are removed at the manufacturer's US warehouse just before they ship it over to LP. Or, maybe the agreement requires LP to remove the warranty card.

Somebody has to remove the card. It was almost certainly put in the box when it was packaged.

Richard

The warranty card is not removed, it simply says that there is no warranty if the product is not purchased over the counter in the US at a LDS (or words to that effect). If you have an item then check the warranty card. If you don't I can find mine and post a copy somewhere.

 

[NudeDiver]

If on the other hand Aqualung have different levels of quality for the same products for different markets in order to allow for differences in pricing/service they are being criminally negligent (I doubt very much this is the case).

Well that's a load of ****. Lots of manufacturers make different levels of quality, for all sorts of things, even within the SAME market. There isn't anything illegal about this, unless perhaps if the level of quality is low enough to be unsafe - but that's entirely another issue from simply having different levels of quality.

 

[NudeDiver]

Thanks to odd tax laws, you can buy gin made in England (like Tanqueray) cheaper in the U.S. than in the U.K.

You can buy gasoline made from Alaska oil cheaper in the lower 48 than you can in Alaska - despite the fact that we have the lowest gas tax in the nation.

 

[Couv]

You can buy gasoline made from Alaska oil cheaper in the lower 48 than you can in Alaska - despite the fact that we have the lowest gas tax in the nation.

Getting a bit off subject, (mea culpa) but I'm curious as to why that is. Is the oil refined in Alaska or is it piped down here, refined and then trucked back up there?

c

 

[Eric Sedletzky]

What is unfair and also problematic is limiting the ability of "authorized" dealers to compete with grey market vendors selling the same stuff. It is problematic as it is not fair not to allow it, but if you did, the margin gets very thin for most local dive shops and they bring in even less cash in a market where the profit margin is already razor thin.

As far as I know, and I get this from people in the retail LDS industry, is that the typical LDS has a 100% markup on items such as regulators. In fact, when you buy a Scubapro regulator at the allowed 10% off from an LDS you are paying double what the LDS payed for that reg (100% markup). So if you were to pay full price you payed 110%. I don't know if Aqualung is the same or not.

Many of the other items in an LDS are set at a 100% markup. In virtually every other retail environment 100% markup was gone by the mid 80's. Now other retail businesses have to be happy with 30 to 50% markups.

I used to work in the exercise equipment retail business in the late 70's and early 80's. Stores like Oshman's, Big 5 and other big sports discounters began to come in and carry more and more olympic weights and benches and other stuff like that at discounted prices. There was no way the store I worked for could keep their 100% markup on regular household stuff, so they went more into the high end commercial line. People would rather save money so they'd go to the big discounters, even though the small shop carried better stuff,
people didn't care about the difference between household and commercial quality they just want cheap. This is what ended the small exercise equipment store. The problem I see with dive equipment is it's not a better brand that's more money at the LDS, it's the same stuff over the internet that's way cheaper.
Why would people spend $500 for something locally when you could get the same exact thing for $300 online. When it comes to supporting the LDS it's hard for people to justify dropping hundreds more just to support a business that can't compete. It's kind of like a welfare or mercy, but at some point people can't do it anymore.

What's razor thin isn't the profit margin in an LDS, it's the amount of sales and the fact that there aren't that many divers coming in buying stuff. Retail space is astronomical and wages keep going up.This is what's thinning out profits. I see the future of a local LDS merging in with larger sports retailers and having a corner in the store. Sport Chalet did this, and even though Sport Chalet isn't doing well overall, their dive section is still covered by the rest of the store. They are able to discount their stuff 10 to 15% overall in the dive section which gives them a local advantage. This is where a lot of people get their air too.
I think this is what it's coming to as far as the LDS.

 

[Twistedarts]

This is where our "disposable" society has brought us. Scuba gear at walmart will be next. you heard it here first.

 

[rstofer]

This is where our "disposable" society has brought us. Scuba gear at walmart will be next. you heard it here first.

Works for me! Even Costco would be ok. In fact, Costco would be better as they have terrific customer service. But I don't think either one of them will run a repair shop. That will be left for online enterprises.

Richard

 

[NudeDiver]

Getting a bit off subject, (mea culpa) but I'm curious as to why that is. Is the oil refined in Alaska or is it piped down here, refined and then trucked back up there?

Oil is discovered, drilled, refined and sold here. They charge us more for the gas simply because they know they can get away with it (lack of competition plays a big role). It's an outrage. Often times Anchorage has the highest gas price in the nation (as measured by some survey of 100 cities or something) - and is $1/more above the national average. Last I looked, we were 40 cents above the national average - and again - it's not due to tax either.

 

[Wayward Son]

in the 70's, we could buy scuba gear out of the sears catalog. I think montgomery wards carried it, too.

 

[redacted]

10 years ago you could buy entry level Aqualung and Dacor gear in the Army PX.