So I'm in the process of buying some eqiupment and wanted to get a price break from my LDS since I was going to buy at least 4 items MSRPing for at least $2500 total. Essentially, he was willing to give a small break, but it still put me in the realm of spending approx $500 more by purchasing everything from him vs going online. He claimed they couldn't go any lower and stay in business, so it got me thinking about the markup that LDSs do on big ticket items (BCs, regs, computers). I recall someone telling me that they were an instructor for a shop and got a "deal" on all equipment in that shop of cost+40%. Since this is a deal, that must mean that minimally shops markup some of these items by at least 50%, but I'm thinking it may be more like 100%. Am I way off base on this??
Cost vs MSRP of gear
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David P
Guest
ok first; pros get "deals" from the mfg, they can actually get gear cheaper than the shop can, (question is if the shop will give the employee the deal...) Markup varies widely. When I speak with customers regarding purchasing a mask, I like to show the Scubapro frameless. I always say that I didn't know if it cost alot because it cost more to make it fit so many faces so well; or because it fit so many faces so well charge more. One day I looked up the cost on this $125 mask and just about choked! I ordered a spare the next day. Then a customer came in looking for a 21w(I think) diverite can light. I told him the price and he asked if I could beat some online price. I looked up my cost and I had to tell the guy I could not. I would almost have to eat the shipping and then give it to him at just above our cost. Cost +50% is no deal.
daniel f aleman
Contributor
The 100% mark-up is standard in all "softgoods" retail sales. Buy a shirt for $20 wholesale, charge $40 retail. Also, some LDS/manufacturer sales agreements mandate a minimum retail price. The only reason to pay a higher price from an LDS is for a limited lifetime warranty (offered from the manufacturer) given through an authorized dealer only - that does have good value if you keep the equipment long enough.
Generally, you can get high quality dive equipment at cheaper prices WITH a warranty from online or discount dealers. Shop around.
Generally, you can get high quality dive equipment at cheaper prices WITH a warranty from online or discount dealers. Shop around.
What I find funny is that SCUBA actually follows MSRP. In Walmart or other places, like Pepboys, everything seems to be priced below MSRP. It's like "eh, the manufacturer has too high of an idea on the price....we'll sell it for 90% of that."
the world of SCUBA is full of backbiting shops and backstabbing companies....it's really dispicable, sad and annoying how juvenile it can get. I really hate this industry, so the industry is pretty freaking lucky that I love the water!
the world of SCUBA is full of backbiting shops and backstabbing companies....it's really dispicable, sad and annoying how juvenile it can get. I really hate this industry, so the industry is pretty freaking lucky that I love the water!
Remember, most manufactures do not apply warranty on most dive equipment bought online!!! Call the manufacture about warranties.
RAD Diver
Contributor
My LDS gives me 30% off most of my items & that gets them darn close to on-line prices.
They have MSRP marked as the price in the shop, so there must be some wiggle room in that price. I figure 50% so they still make 20%. I feel its a win-win situation. Plus any problems I get to talk to someone in person. Usually the owner & he has yet to fail me.
They have MSRP marked as the price in the shop, so there must be some wiggle room in that price. I figure 50% so they still make 20%. I feel its a win-win situation. Plus any problems I get to talk to someone in person. Usually the owner & he has yet to fail me.
MeiLing
Contributor
I really don't understand why retailers on the mainland seem to be pricing their goods so high!
My husband used to work in the industry so I know pretty well what the markup is.
Living here in Hawaii, everything has to be shipped in UPS for the retailers or distributors and the cost of doing business here due to real estate and labor laws is outrageous! Yet LDS's seem to still be pricing comparably to Scubatoys or Leisure Pro and that is even before shipping!
I don't get it!
Are these places just doing so little business where they're at that they need to jack up the prices unreasonably high?
My husband used to work in the industry so I know pretty well what the markup is.
Living here in Hawaii, everything has to be shipped in UPS for the retailers or distributors and the cost of doing business here due to real estate and labor laws is outrageous! Yet LDS's seem to still be pricing comparably to Scubatoys or Leisure Pro and that is even before shipping!
I don't get it!
Are these places just doing so little business where they're at that they need to jack up the prices unreasonably high?
Most dive shops rely on sales of equipment to continue their existence. The margins on courses can be slim to non-existent in many areas, depending on number of customers, local regulations, insurance requirements, equipment/boat hire etc. Obviously it varies.
The problem is, everybody wants something for nothing. A friend of mine has a standard reply to people who ask for a discount on a dive course. He tells them: "sure - you phone your boss right now and tell him you'll take a 20% pay cut, and I'll give you a 20% discount on your Open Water Course." For a group of 8 people, then yes, group discounts might apply - but for 1 person, the margin might be close to nothing.
Many dive shops are struggling to stay in business and compete against the online stores. As one poster mentioned Wal-Mart - this isn't an industry where we can bulk-buy tshirts, mark them down and make everybody think they're getting a bargain. Most dive equipment is highly specialised, quality manufactured to high standards, often specified by government. By its nature it's not cheap - and your average LDS is maybe selling one or two BCDs a month...
Some LDS will be willing to give discounts on some items, and if you build up a friendly relationship and bring repeat business then it's almost guranteed. Consider also that walking into your LDS might be more expensive than shopping online, but the personal service, advice and the ability to try-before-you buy are often worth the extra cash. If your LDS isn't offering these things, then go somewhere else.
I'm pleased to see a comment like Rad Diver's above - it's exactly what I'm getting at. By building up a relationship with your LDS you're more likely to get discounts with the quality advice. Cheaper is not always better.
Safe shopping,
C.
The problem is, everybody wants something for nothing. A friend of mine has a standard reply to people who ask for a discount on a dive course. He tells them: "sure - you phone your boss right now and tell him you'll take a 20% pay cut, and I'll give you a 20% discount on your Open Water Course." For a group of 8 people, then yes, group discounts might apply - but for 1 person, the margin might be close to nothing.
Many dive shops are struggling to stay in business and compete against the online stores. As one poster mentioned Wal-Mart - this isn't an industry where we can bulk-buy tshirts, mark them down and make everybody think they're getting a bargain. Most dive equipment is highly specialised, quality manufactured to high standards, often specified by government. By its nature it's not cheap - and your average LDS is maybe selling one or two BCDs a month...
Some LDS will be willing to give discounts on some items, and if you build up a friendly relationship and bring repeat business then it's almost guranteed. Consider also that walking into your LDS might be more expensive than shopping online, but the personal service, advice and the ability to try-before-you buy are often worth the extra cash. If your LDS isn't offering these things, then go somewhere else.
I'm pleased to see a comment like Rad Diver's above - it's exactly what I'm getting at. By building up a relationship with your LDS you're more likely to get discounts with the quality advice. Cheaper is not always better.
Safe shopping,
C.
Scubapro does not allow their prices to be listed online and they do not allow more than a 10% discount on their regs. If the customer wants the stock in the shop so they can view and pick and choose, they have to realize the cost of keeping the stuff around. Yes,that cost gets transferred to the customer but any shop worth their salt will provide good advice and service which is often worth the extra money.
Crowley:
My response would probably be "if my boss asked me to take a 20% pay cut or else I'm fired, I think I'd have to take the pay cut if I didn't have something better lined up".
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