Genesis Going to Map Pricing

[diveus.com]

We were just informed that Genesis is going to MAP pricing. Personally I believe MAP pricing on Scuba gear destroys the competition that is very important in our industry. It also makes it very difficult for the smaller, less know companies to get a strong hold in the internet market. We have been selling online since 2001 and have been building our name because of low prices and, in my opinion, great service on everyday products. We have done everything we can to compete with companies like Leisurepro, but have been handcuffed by nearly every diving manufacturer we do business with because of their yearly (and sometimes monthly) changes in internet pricing policies. Any more, if you go to our site, and other authorized dealers sites, you will see little deviation in the prices on most manufacturers gear.

You want to save money.... Make phone calls. Call "Authorized" dealers and ask what price they can give you on the products you are interested in purchasing. Many manufacturers do not have policies that restrict the price you sell the product for over the phone. We can almost always match Leisurepro's prices and you will still get the manufacturer's warranty on the gear.

What's your opinion?

James Dean
DiveUS.com
info@diveus.com
1-866-234-8387

 

[El Orans]

Map?

 

[Wayward Son]

Minimum Advertized Price.

 

[M_Bipartitus]

I'd like to know what the big deal is. So the price isn't advertised. The only problem I can see is places that claim they will match prices may not match the actual price. I've run into these policies plenty of times with camera equipment, but places like amazon.com and bhphoto.com will still sell for less. They just don't tell you the price until you add the item to your cart...

 

[redacted]

Do you need them more than they need you? While your Genesis prices are attractive, I just don't think "call for price" will work as well as "$169.95" plus it makes more work for you. I'd try the call thing while I looked for another brand to fill their niche in the bottom of the barrel.

 

[diveus.com]

Sorry I did not explain what MAP pricing is very well. As mentioned, it is Minimum Advertised Pricing. Most companies will not allow you to put "Call for Pricing" or allow you to change the price once it gets in the cart. You will lose your dealership with them. Almost every Scuba Diving Manufacturer has gone to MAP pricing policies so there is no way to get around them unless you decide to sell grey market (Leisurepro is well known for doing this).

My point is simple. Call before you buy. I do not mind a little extra work if I can gain a customer.

James Dean
DiveUS.com
info@diveus.com
1-866-234-8387

 

[Web Monkey]

It shouldn't bother you at all.

As long as the manufacturer applies the policy evenly to all dealers, it means you can make some money without getting eaten alive by the "we're cheaper!" crowd.

Unless you're a non-profit, making money isn't a dirty word and allows you to keep the lights on.

Terry

We were just informed that Genesis is going to MAP pricing. Personally I believe MAP pricing on Scuba gear destroys the competition that is very important in our industry. It also makes it very difficult for the smaller, less know companies to get a strong hold in the internet market. We have been selling online since 2001 and have been building our name because of low prices and, in my opinion, great service on everyday products. We have done everything we can to compete with companies like Leisurepro, but have been handcuffed by nearly every diving manufacturer we do business with because of their yearly (and sometimes monthly) changes in internet pricing policies. Any more, if you go to our site, and other authorized dealers sites, you will see little deviation in the prices on most manufacturers gear.

You want to save money.... Make phone calls. Call "Authorized" dealers and ask what price they can give you on the products you are interested in purchasing. Many manufacturers do not have policies that restrict the price you sell the product for over the phone. We can almost always match Leisurepro's prices and you will still get the manufacturer's warranty on the gear.

What's your opinion?

James Dean
DiveUS.com
info@diveus.com
1-866-234-8387

 

[redacted]

It shouldn't bother you at all.

As long as the manufacturer applies the policy evenly to all dealers, it means you can make some money without getting eaten alive by the "we're cheaper!" crowd.

Except for those retailers who are not adequately controled by the Mfgr, like Leisurepro. I'm impressed by an authorized dealer who can advertise a price lower than the grey market devils.

 

[diveus.com]

It shouldn't bother you at all.

As long as the manufacturer applies the policy evenly to all dealers, it means you can make some money without getting eaten alive by the "we're cheaper!" crowd.

Unless you're a non-profit, making money isn't a dirty word and allows you to keep the lights on.

Terry

Web Monkey. As a consumer, you should be outraged as well. When I sell for less, I sell more products. When I sell more product, I get the products at a better price. When I get the products at a better price, I sell the products for less. All of this means more divers and more money to go diving. This is talking from experience. We have seen our sells drop dramatically when MAP pricing is set on products. We have yet to see our Sales Floor pick up the slack or the increase in markup making up the difference.

 

[PhilEllis]

Hi James....

I do online from the other side of the country. I assume you are served by Cramer Decker. I am supplied with Genesis by Peter Skop Industries. I have not been notified of the movement to MAP pricing, but if correct, it certainly is a shame for this product line.

Unfortunately, Genesis is simply not a strong enough line to support Minimum Advertised Prices. The Sherwood Group has maintained the Genesis line to serve the price point part of the market. This type of line works well with no restrictions, but MAP pricing (probably 15% to 20%) on Genesis will just kill the sales. They have already experienced a considerable drop in sales of the Akona line with movement to MAP, so I simply don't understand why they would do it on Genesis.

I hate to see small lines make the move to MAP structures. XS Scuba has done it recently, and I am certain they will experience the same reduction in sales volume everyone else does in the scuba industry when that move this way. Unfortunately, they strive only to protect the smallest dealers, often times dealers that made very bad business choices in the first place. The down side is consumers lose and volume dealers lose. The manufacturer seldom benefits. And the small stores that are the protection target for such policies don't buy even one more regulator than they would without the policy. What a shame. Anyway, we will see what happens.

Phil Ellis
Dive Sports Online
www.divesports.com
(800) 601-DIVE