SMKChef once bubbled...
It's "You're," first of all.
Then tell me why you do then? Because ScubaPro and Aqualung require you to sell their products at certain prices? Who runs your shop? You or the Manufacturers?
And I paid my money to use the pool. Part of the deal with getting open water training at this LDS is that once you are an alumni you can come in any time the shop is open and use the pool for free. So, I was taking no advantage of the shop.
About the pricing; it's your store, you decide how you are going to make money. No one opens a business to lose money, they may not become millionaires owning a dive shop, but shop owners are certainly not starving unless they are poor businessmen. As for pricing structure, the only way that will change will be when shop owners band together and refuse to support those companies that require set prices in the USA.
Sam Walton didn't become a billionaire by listening to manufacturers. He built his company on prices that the public would pay, and made money on volume. I am sure Leisure Pro and DiveInn do a pretty high volume business. This is a global marketplace now.
Actually I don't do business with Aqualung or SP because they came right out and said they wanted to run my store especially SP. The manufacturers tell me what I will pay and they don't let me sell online. I am locked into a small market with low volume and high overhead. They also dictate the overhead. For instance I must have a compressor and teach classes. I will never sell enough air fills to pay for the compressor it is a cost I must pay to sell equipment.
There are some here who say I can sell online that I don't need to be an authorized dealer but that leaves me and therefore the customer without the support of the manufacturer.
And don't kid yourself some of this stuff is being sold online for just about what I pay for it.
Come on folks use your head you know what the stuff sells for online and so do I. Why would I just intentionally send business to LP.
In the past I have tried to explain how things are tied together. A simplified version...We are required to be a full service shop to get a dealership. Since we must teach we need certain insurance. The insurance company insists that we follow the rules of the agencies we teach through and the manufacturers who make the products we sell.
The difference here is that LP and places like them are not dive shops. They don't have the burdens of a dive shop and they don't have the restrictions.
So to answer your question...The manufacturer does run our shop.
Low volume = high prices but low prices do not mean high volume for us because we are limited to a walk-in market. Do the math if we lowered the price by 25% how much additional volume would we need to make the same. The fact is we just wouldn't pay the rent. If the 25% reduction was from suggested retail a 25% reduction in price would mean we would need to almost tripple sales to make the same amout. The market (walk-in) just isn't there.
And I may be a poor business person (ask genesis) but while the shop pays it's own rent we get ZERO income from it. My day job feeds us. If I could get back my original investment it would be a break even proposition. Well except all the hours we work for free. If I didn't have other income we would indeed starve.
Don't get me wrong I could make more. I could shorten classes as others have. I could teach in a different mannor so as to sell more of certain products that I now discourage divers from using. In short if my objective was to sell rather than to teach I would make alot more.