how much do shops make on us???
- Thread starter chironomidkraut
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jmasin
Contributor
Agree.
The environment these days, at least in the US, is to criticize profit being made by businesses. It started up high and as trickled down low. Every consumer is a victim being taken by the companies...
It seems we desire to throw supply and demand is out the window.
The goal of any business is to make as much profit as possible, to grow or, literally, profit from the services or products they offer.
LDS are no different. As with any business, they must find a balance between prices high enough to make profits, but not so high to discourage demand. ECON101.
I have a few low volume hobbies and they're all the same.
Do the people who have motorcycles or bicycles for hobbies have these discussions on their websites?
Diving is a hobby, right?
What is wrong with making money? If you think someone is taking advantage of you, you should take your business elsewhere. But not everyone who makes a profit in business is soaking you.
Diving is a hobby, right?
What is wrong with making money? If you think someone is taking advantage of you, you should take your business elsewhere. But not everyone who makes a profit in business is soaking you.
Sas
Contributor
Yep I'm a software tester.
Absolutely, this is smart business practice. I know my job could be outsourced. I have backup plans if this is to occur though
Sas
Contributor
Some hobbies yes. Photography is one I am familiar with. Much much cheaper to buy equipment online.
Eric Sedletzky
Contributor
That's exactly right. And if those same dive shops pull all sorts of tricks to get people to pay their prices then it's the customers fault for not doing there homework and finding out more about the hobby they are entering into and where to shop etc. In this day and age of information at your fingertips a person would be silly to just lay down for a rude or dishonest local business.
If the customer weighs all the factors such as price vs customer service, support, friendship, etc, and finds that it's worth it with everything considered to support their LDS, then the LDS wins. If the LDS is rude, unaccomodating, overpriced, and doesn't care about anything but getting as much money out of people as they can and the customer buys online as a result, then the LDS loses.
Eventually this practice will drive the undesireable LDS out of business and that is the natural order of capitalism.
In my business the old saying is - If someone can provide a product better, cheaper and faster with a smile (or something unique and innovative that nobody else has) then they win.
The bottom line is that yes you can probably get gear at cheaper costs from online sites and if it's a specialty item that an LDS doesn't keep on hand it could be a few weeks before it comes in because the LDS wants to place a complete order to cut down on shipping. ZKY has it right though, there is more to take into account than just price and good healthy competition between LDSs is beneficial to the industry and a diver's wallet. But without direct support from local divers i.e. purchasing goods and services, their wouldn't be a local dive shop to go to.
Divers, especially recreational divers, would have nobody to turn to for serving of equipment and training. From my experience many divers try to push their servicing to the limit as it is and very few people (including myself) don't take as good of care of their equipment as they should. I couldn't count the number or regs I've seen that were corroded and still divers were unhappy that a service tech charged them for the extra cleaning that was needed.
A LDS is an asset that shouldn't be overlooked when one thinks about the price they pay for gear or services. Divers should be skeptical and check out all the shops within driving distance before they settle on the one that's right for them. But if we all got our gear from scuba.com or leisurepro.com we would all be stuck diving on aluminum 80s and paying much more outrageous amounts to send our gear off to get serviced by a tech we have never met and who will never have to look up in the eye and say, "Yup, your rigs in great shape and ready to go!"
If you're worried that your LDS is taking you to the cleaners, wheel and deal with them to bring a price down. If they don't match an authorized dealers price tell them you are going somewhere else. If they don't come down on it then, shoot call me and I will!!
Divers, especially recreational divers, would have nobody to turn to for serving of equipment and training. From my experience many divers try to push their servicing to the limit as it is and very few people (including myself) don't take as good of care of their equipment as they should. I couldn't count the number or regs I've seen that were corroded and still divers were unhappy that a service tech charged them for the extra cleaning that was needed.
A LDS is an asset that shouldn't be overlooked when one thinks about the price they pay for gear or services. Divers should be skeptical and check out all the shops within driving distance before they settle on the one that's right for them. But if we all got our gear from scuba.com or leisurepro.com we would all be stuck diving on aluminum 80s and paying much more outrageous amounts to send our gear off to get serviced by a tech we have never met and who will never have to look up in the eye and say, "Yup, your rigs in great shape and ready to go!"
If you're worried that your LDS is taking you to the cleaners, wheel and deal with them to bring a price down. If they don't match an authorized dealers price tell them you are going somewhere else. If they don't come down on it then, shoot call me and I will!!
The market will eventually win.
People will purchase gear at the best price and/or best value. Steadfastly holding to the traditional MSRP prices will result only in collecting dust.
Inventory sitting on the shelves and becoming outdated is akin to having piles of money sitting on the shelves with a stiff breeze running through the store.
The LDS as we know it will need to change in order to survive.
The LDS will in many ways have to become the local dive club, a social hub and information center. They can promote and expand training and reviews, expand service and repair, carry less inventory and will need to sell that inventory at a lower profit margin.
They will need to work with local health clubs, schools, and city recreation programs. Getting creative in order to survive the double whammy of internet competition and bad economy is the LDS life support system.
I believe that there is money to be made with dive training.
If the margins are thin then an answer is to up the volume. The LDS is paid per customer and Instructors are paid per student. So, its in the LDS and in the Instructor's best interest to get out there and hustle up business. Sitting there waiting for potential students to walk through the door is the short road to starvation.
In the end, some businesses are going to fail, others will merge with or morph into a larger multi-sport center, and others will keenly define their market and become the specialty dive store that no local divers can do without.
People will purchase gear at the best price and/or best value. Steadfastly holding to the traditional MSRP prices will result only in collecting dust.
Inventory sitting on the shelves and becoming outdated is akin to having piles of money sitting on the shelves with a stiff breeze running through the store.
The LDS as we know it will need to change in order to survive.
The LDS will in many ways have to become the local dive club, a social hub and information center. They can promote and expand training and reviews, expand service and repair, carry less inventory and will need to sell that inventory at a lower profit margin.
They will need to work with local health clubs, schools, and city recreation programs. Getting creative in order to survive the double whammy of internet competition and bad economy is the LDS life support system.
I believe that there is money to be made with dive training.
If the margins are thin then an answer is to up the volume. The LDS is paid per customer and Instructors are paid per student. So, its in the LDS and in the Instructor's best interest to get out there and hustle up business. Sitting there waiting for potential students to walk through the door is the short road to starvation.
In the end, some businesses are going to fail, others will merge with or morph into a larger multi-sport center, and others will keenly define their market and become the specialty dive store that no local divers can do without.
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