Johnson Outdoors (Scubapro) troubles

[Web Monkey]

I guess SP isn't everyone's favorite, but I have had more comments of "You carry SP so I guess you're a real dive shop" and " I wouldn't have come in the door if you didn't carry SP" than anyone dissin' the brand. SP doesn't offer dealership to everyone, rather you actually must qualify and they expect their dealers to serve customers with a high level of customer service. If you have a bad experience with a SP dealer, let HQ know about it. I know of 2 nearby shops that have lost SP and it's more to protect the end-customer.

That's actually a great point. If you're getting bad service, tell SP.

A good shop will do almost anything to make the customer happy. We've had people walk into the shop with a broken reg and say "We're going <someplace warm> tomorrow (or tonight!) and my reg doesn't work. If necessary, one of the techs will stop what they're working on and take care of the problem on the spot.

People can bitch about SP all they want, but having a stable brand with great products that actually allows the dealer to make a profit means the dealer can afford to give the service the customer wants.

This means there are actual trained, certified techs on the bench, a complete set of the right tools, a flow-bench and wall full of clean, shiny new parts that are actually the correct parts for your specific reg; not just a guy with a wrench and a box of generic o-rings.

Terry

 

[widget]

I participated in a similar post elsewhere, after 25 years in the industry, in my opinion this sport has one foot in the grave.

By the end of 2009 both feet will be in, and unless there is a dramatic upturn worldwide, we may as well start shoveling the soil over ourselves.

The problem is Scuba is a very equipment intensive sport and the cost of branded equipment has risen to a point its now unaffordable to all but the reasonably wealthy (like it or not we are a luxury sport) - shops NEED equipment sales, most just cannot survive without it.

I fully agree with awap, the end user IS ultimately the customer, without the end user there is no business - making it difficult for this user by not selling them spares, price fixing, unrealistic mark ups etc is driving them away, the shop down the road IS NOT your competitor, its the other sports who are all looking for your money and if you make it difficult here, the customer just moves off to something else, never to return.

At the present time all the brands are in the same boat, its got a big hole and they are bailing furiously, some with deep pockets or strong holding companies like Scuba Pro, Aqualung and Mares will survive, weaker and less inclined to the market, but they will survive.

I think well managed privately owned brands like Sherwood and Oceanic MAY be able to weather the storm as is, their lighthouse is off, its stormy and the ship is taking water but been smaller, they can plug the holes quickly and they will possibly pull through, but, I regret its my opinion the small brands are doomed, there is no way they can withstand this dramatic drop in sales.

This is undoubtably going to be the toughest time in scuba history, the face as we know it now will most certainly not be the same in 2010.

 

[John_B]

The biggest impact on the company's quarterly results was a non-cash asset impairment charge of $41&#8194;million.

That goodwill write-down contributed to a quarterly loss of $8.18 a share for the three months ended Oct. 3. That compares with net income of $942,000, or 10 cents a share, a year earlier.

It doesn't specify exactly what the asset impairment charge is all about, but a $41 million charge for what amounts to an asset valuation write down (Existing inventory that isn't moving? Write off from overpaying for an acquired company or division?)... That is one helluva kick in the pants in one quarter for a company of that size.

This is undoubtably going to be the toughest time in scuba history, the face as we know it now will most certainly not be the same in 2010.

And yet I predict there will be no shortage of color coordinated snorkels, BCs with elevator buttons/levers, or six-window masks. The brands may change but the product mix won't. In the mean time the large clearinghouses will have plenty of "new" stock as the small retailers founder.

 

[Charged]

Well, I plan to purchase a new regulator set from Scubapro this week. Wonder if Ill still be able to get quality service and maintance on it when needed. Think there financial status gives me bargaining leverage? When the "Big 3" auto-makers are on the verge...I suspect anybody is game for going under.

...but Im not business savy, so dont take my word for it.

 

[PhilEllis]

They released an investor relations memo on December 5 and it had some pretty astounding information. The losses for JOUT are pretty large, with over half of that a result of their diving business. I know this is a tough time for ANYONE in the scuba industry, and I am sure it is no different for ScubaPro and their related companies. I hope they and all other scuba companies are able to weather the storm.

I expect JOUT will announce the results of their negotiation with their lenders on the net-worth agreements soon. I look forward to seeing what happens there. While I am not a financial guy, I don't think reclassification of all long-term debt as short-term debt will be helpful to them.

Johnson Outdoors Inc. - Johnson Outdoors Inc. Announces Fiscal 2008 Fourth Quarter and Full Year Results

Phil Ellis
Discount Scuba Gear at DiveSports.com - Buy Scuba Diving Equipment & Snorkeling Equipment

 

[Wayward Son]

if you need gear, decide what you want & buy it. the best thing to keep them in business is sales. I just got back from my LDS with a new Mk25/G250V, a reg bag, new mouth piece, etc.

You guys can worry, I'm going diving

 

[Web Monkey]

if you need gear, decide what you want & buy it. the best thing to keep them in business is sales. I just got back from my LDS with a new Mk25/G250V, a reg bag, new mouth piece, etc.

You guys can worry, I'm going diving

Me too!

It breathes like a dream, and contains actual metal parts!

Terry

 

[PhilEllis]

Well, I plan to purchase a new regulator set from Scubapro this week. Wonder if Ill still be able to get quality service and maintance on it when needed. Think there financial status gives me bargaining leverage? When the "Big 3" auto-makers are on the verge...I suspect anybody is game for going under.

...but Im not business savy, so dont take my word for it.

I think you are absolutely safe with ScubaPro. These are just hard times that everyone has to bear.

Phil Ellis
Discount Scuba Gear at DiveSports.com - Buy Scuba Diving Equipment & Snorkeling Equipment

 

[fireflock]

Wonder if Ill still be able to get quality service and maintance on it when needed.

As long as you have a mailbox, you have options. I don't think they will stop making parts.

 

[gunnergunzz]

As a new consumer (new diver) I look at price + quality, not price + quality + hype + advertizing. Will my equipment work when needed? If it does for 50% or less from online, I will purchase it online because I can afford it there. If ScubaPro sells quality equipment at outlandish prices during times that credit is a no no then they will fail. In the long run companies that understand what consumers can really afford to pay will survive. The rest will find death as consumers repay their debt. Many years of credit has inflated prices, now to find we are over our heads in debt. Not a good place to be if you are a retailer.