Jarrod and I have traded a few PMs as well....
Let me say that while I disagree with his analysis, I don't dislike the guy. He and I just see things differently when it comes to the issues and incentives in this, like any other, business. Having run a number of them and worked for still more, and having either failed or watched one go down around me (but powerless to do anything about it other than crank out resumes) more than once before "doing it right" (can I still say that?

), I've found that the more different industries and businesses seem the more they are the same, in reality.
Contrary to perhaps popular belief, I do appreciate what JJ deals with in running Halcyon. I had many long nights and longer days (some of them more than 48 hours long) myself in a lonely corner office dealing with various issues that arose, and lots of time on the road too.
The problem I've seen with price protection, beyond the fact that you have to use a loophole in the law to do it at all (the clear original intent of the Sherman act is to prohibit these practices), is that it inherently unbalances the market. The consequence of
that shows up in other areas, none of which look like they're connected to pricing, but in fact they all are.
The "puppy mill" mentality that has overrun diving is a good example. Its driven to a large extent by an overreliance on hardware sales, and the best folks to shove that upon are the new, wide-eyed fishwatcher who just got his first few hits of Nitrogen.
What is wrong by forcing a divorce between the hardware sellers and the "dive resorts"? Split hardware off from training, trips and fills. Let me posit a model that I believe would work
better all the way around for the industry
and the diver..... since JJ threw down the gauntlet in his response...
Assume no price controls. JJ is correct in that Halcyon makes no more money with its "FTP" pricing than if it didn't have it - their price to the dealer is the same either way.
If the controls are dropped, then shops are unable to subsidize their training, fills and even trips (possibly) with hardware sales. Its simply impossible. You now have to make a business out of hardware sales on their own feet, without them paying for other stuff. Likewise for the compressor, mixing station, and training.
Is this bad?
No, I argue that its good!
If we de-couple these things, we end up with a lot of benefits. Let's look at it a bit....
1. Training now is done at a price that actually pays for the training received. You can't do the puppy mill thing, because there's nowhere to "soak" the new diver. There is no longer any great incentive to crank a lot of people through at no profit for the explicit purpose of trying to get a couple of them out of every 10 to buy gear from you - since you don't SELL gear!
2. Those agencies that REALLY want to set a "higher bar" (e.g. GUE) now can without having any incentive or desire to "link" their actions to a "full service shop." They're JUST a training org, or a training and diving org. This is not bad - its good! You can now put a dive training center where it makes sense, whether or not it will support (or will be supported by!) hardware sales.
3. The guys who want to sell gear can. With open parts availability, service issues disappear. Now I can get my Mares reg fixed anywhere, because any sales/repair facility can get the parts - even if they don't sell Mares gear. Ditto for SP, Apeks, etc. With this wall gone customers now take their gear where they WANT to have it serviced, instead of to whoever has the local franchise for a particular brand. This is also good! The competent ones stay around, the others die off.
4. How many of you haven't seen the "if I sell it then its golden, otherwise its garbage" phenom? If that shop is your LDS, is this good for you or bad? Pretty bad eh? There's one shop around here that is
known for this..... if he was YOUR LDS (the one who certified you, etc) how heavily influence are you likely to be by the captive sales pitch? Not good overall for the customer, wouldn't you say?
5. As for training accountability, there would be a huge improvement. Right now there's a "hidden" problem in that if someone has a bad experience with a given shop on a training-related issue, and its "their" LDS, they have an incentive NOT to report it. Why? Because their
gear service might be impacted! Consider that ALL the agencies require you to name names and complain in writing. That's not good if you bought a bunch of "Brand X" hardware from them, had a problem, and now you're going to file a complaint about their training - identifying yourself! How many people slink off into the night instead? I bet its lots - perhaps nearly all. Lack of accountability and that feeling of being "captive" does not make for a solid, accountable, fair and honest relationship between divers, shops, agencies and manufacturers.
There's more, but I think the point is pretty clear..... everyone should be able to fill in the rest...
I'll leave this by saying that there is an old general principle that many people ignore, yet it remains even more true today than it has been over the last thousand years - people mold their actions based on the economic consequences thereof, whether we account for them in detail or not. The simplest example of this can be seen on a street corner where there are four gas stations, and one sells gas for a two or three cents more a gallon than the other. Their pumps will be empty.
Over less than fifty cents to the average customer one company will go bust, the others will split all the business.