I find that this explanation makes absolutely no sense. In a business sense.
Why should you pay more in your equipment price for the rent, compressor insurance and rest?
Don't you pay the compressor in the Air Filling/Rental?
Don't you pay the insurance/instructor when you have to PAY for CLASSES?
The way for a business to be competitive is to analyse what makes money and what doesn't. What people are willing to pay more for and less for.
Separate you business in sector. Gear, Classes, Rentals. Each needs to be self-sufficient, if you have to take the gains from somewhere to block a loss in another place, something's not right.
As an example. If you treat your customers like crap but you have a lower price for scuba classes. Do you think they will still take scuba lessons at your place? No
Price needs to be guided by more than your spendings. Why do you think people buy Apple computers even if they are more expensive. Because they want a trouble free solution.
It is understandable to be a bit higher but 100% that is retarded.
I support my LDS but I'm not ok with paying more for a product. Also 100% is a bit steep, 600$ for an air integrated computer? That's a bit low. Even if you LDS is selling at 800$ you have to think. 600$ + Shipping + Import Fees (for 600-700$ they would be 50$)
I now go to a small Scuba shop. The guy sells tech gear and he teaches me some neat stuff all the time, still his price is always 100-200$ over the internet price for gear on LP. Because he doesn't care if he sells or not.
Why if I'm Machiavellian did I buy from his shop? Not because I pity him.
Because it was best for me monetarily and selfishly. If I buy from him, I get :
1) Instant Tech Support
2) Lifetime Warranty from SP (40$/year)
3) He tells me what would be a better buy not what makes him more $.
4) I can try the gear and I'm sure it fits me.
Some LDS fare better than others, and looking at my region the two that are doing great are starting to go Online. Business is always evolving and fluctuating.
A website that sells buy itself costs around 20k/year, that's like one employee per year. Basically you are paying for one person to sell your stuff non-stop 24/7, no annoying behavior and no paid vacation. Yes, you won't be able to sell your regs online (SP or AL) but at least you'll be able to sell enough accessories and other stuff that you'll make a small profit out of it.
Things aren't black or white, but always a shade of gray.
Also, I don't think there will ever be a time when ALL LDS will close.
Those who will evolve will stay, does who don't will fall.
(BTW, I can count 8 dive shops (that I know) that are in a 15-20min travelling time) Those are only the ones I know, there are many more, IS THERE REALLY SUCH A NEED FOR THAT MANY LDS?
If there are too many LDS it's normal some will go.
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For Frisco 23, I live in Canada and I tell you. Shipping and Customs from the States are going to be a pain in the butt. Find someone who will sell it at 200$ more expensive and you'll be a winner.
600$ + 100$(shipping) + 100$ warranty = 800$ = WIN
My plain opinion
Be sure to tell your LDS that you couldnt care less how much it costs to keep a 300,000 thousand dollar compressor running, or the cost of changing filters or the up front costs or storing the O2 needed to make the Nitrox, or the rental tanks or the 30,000 dollar initial buy on spare parts to service customer and rental dive equipment. Oh and make sure that that you tell them that you dont want to pay to keep their staff on hand or the rent or insurance to keep their doors open or the pool clean.
When a student walks through the front door wanting an OW dive course you should think about what he or she is getting for the 250 or what ever the going rate is today. The instructor pays several hundred a year into insurance, or maybe the shop pays it for him, remember that the gear used in training has a value of a couple of thousand maybe, BC, tanks, an assortment of weights and belts, regulators that work properly even though they are regularly abused by students that dont yet know better. Remember the cost of getting to the dive site and the time involved in the teaching of the class and the time to make the dives with students, both pool and open water. To make a profit on dive classes it would be logical that the classes cost thousands, not hundreds, make sure you tell the LDS that this is not your problem and that you dont want to pay for any of this
Think about how much it is going to cost to have you own compressor and all the associated filters and storage banks and how much it is going to cost to trailer all this to the dive sites because when you kill off the LDS that is what you are going to have to do.
Just sayin