LDS Disillusionment

Please register or login

Welcome to ScubaBoard, the world's largest scuba diving community. Registration is not required to read the forums, but we encourage you to join. Joining has its benefits and enables you to participate in the discussions.

Benefits of registering include

  • Ability to post and comment on topics and discussions.
  • A Free photo gallery to share your dive photos with the world.
  • You can make this box go away

Joining is quick and easy. Log in or Register now!

yknot:
Not all brands prohibit internet/mail order sales. Has it occured to anyone that LP is actually an authorized dealer for at least some of the products they sell?

I can't imagine LP signing or paying for a dealership agreement. Why should they?

But their souces do appear to be fairly diverse. I heard that Scubapro plugged a major leak for their products a couple monthes ago. Supposedly, SP prodocts were coming directly from a major European distributor to LP. That would explain the din connector on my Mk20. By why would it take SP years to identify and stop that source?! Maybe it was those nasty European consumer protection laws. But I also talked to an LDS owner who got a call from LP right after he started to carry SP products. And they were talking a million dollars worth of wholesale business with a 10% cut to the dealer. Tempting: $100,000.00 right off the top plus 30% off the wholesale price on all your shop's stock because you are a large volume dealer. I can't imagine many struggling LDS falling for that. :crafty:

And what would happen if SP was successful in denying LP their produces. "Sorry, we are out of stock on the Mk25/S600 but I can give you an ATX200 with an additional 10% off." Would anybody be surprised if SP sales were sagging as Apeks sales were picking up? The process of natural selection is at work. :11:
 
Sartek Industries, the company that owns the patent for HID technology dive lights, lists LP as an authorized dealer on their web site. I also believe that Diver Direct is an authorized Mares/Dacor dealer. They have stores all over Florida and I didn't see anything leading me to believe that they offered classes or air, at least on site. Perhaps as an authorized retailer you could get around some restrictions by having a strong affiliation with an offsite instructor. For all I know, you can walk into LP's store front and sign up for training, just not on the premises.

I had a Dive-Rite distributor look me in the eye one time and tell me they don't know how LP aquires and inventories their products. This was said in the presence of some LDS personnel, however. He further stated that they would cut LP off if they could. Any manufacturer or distributor with the will to do so could track a LP product thru the serial number and bring a halt to the side of the supply they do control. Wouldn't you get a little suspicious if a LDS in Podunk suddenly ordered 100 regulators? At least Halcyon has the will to not play both sides- I can't find a single source for new Halcyon products at a discount, other than new/unused on e-bay from an individual. And interestingly enough, Halcyon products are readily available mail order.
 
yknot:
A somewhat simplified and incomplete explanation. Warranties are not generally offered by distributors but rather by manufacturers. In the case of goods sold by LeisurePro, unless these products are counterfeit then the manufacturer certainly made a sale and profited by it, whether these items were destined for retail sales in Europe or the US. BTW, LP has only been accused of selling counterfeit goods once that I know of. The reason that the distributors deny warranty service for some products is an attempt to maintain a monopolistic hold on certain products thru their authorized dealers.

Also somewhat simplified and incomplete.

Look, I'm nearly the last to defend the LDSs, but before we can beat up the manufacturers, we have to start with an accurate worldview.

There are no blanket warranties* -- each piece of equipment, each and every single one, R190 s/n 123456, comes with it's specific warranty. At the time R190 s/n 123456 is sold by the manufacturer, it comes with a warranty, with specific and precise terms. R190 s/n 123457 may have the same warranty, or an entirely different one.

Which warranty each of these comes with may be a factor in it's price when it's sold.
  • R190 s/n 123456: warranteed against all failures ever, free service parts for life, free drinks while you wait. Price: $500
  • R190 s/n 123457: warranteed to contain parts. Price: $100

Are they the same product? Well, no. Both products include an R190, but one includes additional goods and services, and the other doesn't.

If I buy s/n 123457 and demand the free drinks, I'm demanding something I didn't buy. It really is that simple.


Two factors have heterodyned to cause confusion: the common practice of regionalizing warranty policies, and the increasing irrelevance of regions.

Sellers (manufacturers&distributors) have commonly chosen to sell similar or identical warranties, for the same piece of equipment, in the same region. I.e., not only do all the R190s at Bob's Liquor and Dive come with the same warranty, so do the ones across the street at Ed's Scuba Silo. This has habituated many into thinking that any piece of equipment they posess in the nation of EdBob, regardless of origin or original sales terms, should have the same warranty as the ones sitting on Bob's shelves and Ed's shelves.

Combine that common misunderstanding with the the decrease in net-cost of long distance transportation and communication. Now, it's easy for me to order an R190 from GunthersSprocketsDanceMonkeyScuba.com. The R190 from GunthersSprocketsDanceMonkeyScuba.com doesn't come with the same warranty; it wasn't sold with it, I didn't buy it. If I take it to Ed's and demand free drinks, they're perfectly right to ask (on behalf of the manufacturer who will be paying for the drinks) for my free-drink-card, and to decline to give me free drinks if I don't have one.

(Misc. thought: I'd bet it would help a great deal if we quit using the word "warranty" with all it's emotional burden, and used something like "service contract".)

If we can all agree on those basics, then we can start discussing Minimum Advertised Price and Minimum Selling Price contracts, global warranty harmonization, rude and deceptive LDS staff, etc., but if you start with the fallacy that you're owed something you didn't buy, we can't get anywhere.

--Laird


* In certain jurisdictions, local law may change this a little. E.g., in the U.S. most state commerce jurisdictions require basic "warranties" of merchantability (which are different critters from the warranties we're all used to discussing.) The U.S. federal Magnusson-Moss act also contains some warranty-affecting language. These situations are way more limited than most think, and do not alter the basic point.
 
awap:
I can't imagine LP signing or paying for a dealership agreement. Why should they?

Who says all manufacturers require a restrictive dealer agreement? Some lines are probably grateful for the exposure and market access LP offers. If I invented some new scuba gadget or piece of hardware and wanted to sell as many as possible, my first call would be to LeisurePro, not Johnson Wax.
 
yknot:
Sartek Industries, the company that owns the patent for HID technology dive lights, lists LP as an authorized dealer on their web site. I also believe that Diver Direct is an authorized Mares/Dacor dealer. They have stores all over Florida and I didn't see anything leading me to believe that they offered classes or air, at least on site. Perhaps as an authorized retailer you could get around some restrictions by having a strong affiliation with an offsite instructor. For all I know, you can walk into LP's store front and sign up for training, just not on the premises.

I had a Dive-Rite distributor look me in the eye one time and tell me they don't know how LP aquires and inventories their products. This was said in the presence of some LDS personnel, however. He further stated that they would cut LP off if they could. Any manufacturer or distributor with the will to do so could track a LP product thru the serial number and bring a halt to the side of the supply they do control. Wouldn't you get a little suspicious if a LDS in Podunk suddenly ordered 100 regulators? At least Halcyon has the will to not play both sides- I can't find a single source for new Halcyon products at a discount, other than new/unused on e-bay from an individual. And interestingly enough, Halcyon products are readily available mail order.

Halcyon doesn not have any policy preventing internet sales. Diverite, Zeagle and Crammer & Decker (Sherwood/Genesis) also now permit internet and mailorder sales.

Some manufacturers policies restrict "advertised" price and some restrict actual selling price.
 
yknot:
Who says all manufacturers require a restrictive dealer agreement? Some lines are probably grateful for the exposure and market access LP offers. If I invented some new scuba gadget or piece of hardware and wanted to sell as many as possible, my first call would be to LeisurePro, not Johnson Wax.

Oh, I don't doubt that they may be an authorized dealer for some mfgrs like Akona, Otter, UK, Pelican, Ikelite, etc. I'm just saying that I doubt if they would tolerate much Mfgr BS that comes with an authorized dealership for the "life support equipment" mfgrs. At one time, I believe they were selling their own brands of BCDs and regulators. I can only imagine that had to be a service nightmare.
 
lairdb:
(Misc. thought: I'd bet it would help a great deal if we quit using the word "warranty" with all it's emotional burden, and used something like "service contract".)

If we can all agree on those basics, then we can start discussing Minimum Advertised Price and Minimum Selling Price contracts, global warranty harmonization, rude and deceptive LDS staff, etc., but if you start with the fallacy that you're owed something you didn't buy, we can't get anywhere.

--Laird


* In certain jurisdictions, local law may change this a little. E.g., in the U.S. most state commerce jurisdictions require basic "warranties" of merchantability (which are different critters from the warranties we're all used to discussing.) The U.S. federal Magnusson-Moss act also contains some warranty-affecting language. These situations are way more limited than most think, and do not alter the basic point.

Laird, as a first step to understanding these issues I read as much of the Magnuson-Moss act as possible. I also read the opinions of those charged with interpreting and enforcing this type of legislature, namely the FTC and my own state's attorney general. While we "could" call these service contracts we won't. Since the manufacturer has chosen to call them "warranties" we will too, since that is what they are now, per the law. Also, in spite of what some warranties state as to who is eligible, when a warranty requires actions on a consumer's part that are outside the law to ask for then those restrictions become unenforcible. Also, when the main purpose of a requirement is to restrict competition, such as prohibiting lower advertised prices and forbidding mail order sales, then the government has consistantly considered these actions to be violations also.
 
MikeFerrara:
Halcyon doesn not have any policy preventing internet sales. Diverite, Zeagle and Crammer & Decker (Sherwood/Genesis) also now permit internet and mailorder sales.

Some manufacturers policies restrict "advertised" price and some restrict actual selling price.

Requiring minimum advertised prices and price minimums is illegal, at least according to the US government in the case of "Nine West". If you removed those restrictions and allowed mail order sales by authorised dealers, what competitve advantage would LeisurePro have then?
 
yknot:
Requiring minimum advertised prices and price minimums is illegal, at least according to the US government in the case of "Nine West". If you removed those restrictions and allowed mail order sales by authorised dealers, what competitve advantage would LeisurePro have then?

What's legal and what's not matters less than what's enforced and the government enforces whatever is best for the people who pay the best. These dealer agreements are all over the place and if it's illegal and they want to enforce it then they could have a real field day and flat out fill some federal prison.

If the price restrictions were removed along with the requirements to be a full service dive shop (which cost lots of money for things that aren't always profitable) then every one would be on a fairly level playing fielt.
 
yknot:
Requiring minimum advertised prices and price minimums is illegal, at least according to the US government in the case of "Nine West". If you removed those restrictions and allowed mail order sales by authorised dealers, what competitve advantage would LeisurePro have then?

Name recognition, volume sales, large established customer base, fairly good web site. But it would still be a good start. Downside is a lot of LDSs would not survive the transition.
 

Back
Top Bottom