I am not in sales or marketing so I am a little confused. Everyone seems to be talking about what will happen if the market is blown open with the huge intense competition that internet sales and no pricing controls. Isnt this already happening? I can go on the internet and buy from LP, eBay, or even direct from Hong Kong and Singapore. I am probably missing something but how will allowing LDS to compete add to their demise. Is this because there are enough loyal customers that will hold the shop up by paying artificially high prices? If this is true, then how would allowing competition have a negative effect on this loyalty. If not then how are the LDS able to survive in the existing market?
I believe that the answers are in relationships.
I dont buy from LP or those other web-stores. I do buy from some dive-shops that have internet sales like Divetank, but still get most of my gear from my LDS. I do this because for many items by the time shipping is included my LDS is similarly priced, but mostly I buy from places for the service and relationships that I have developed at the LDS.
There are things that I buy for price, but I buy a lot of things at higher prices in exchange for quality, customer service, hands on comparisons, and the friendships that have been developed. One example is my computer. I buy things at places like Best-Buy, but I get my computer parts and service from a small local shop. In the growing dominance of big box stores and the internet this little store is busting at the seams. The owner of the business recently had to expand into the space next door. I doubt that he is able to buy at the same cost as Best-Buy, Costco, or New Egg, but some how his biggest problem is keeping up with all the demand.
Divetank is a brick and mortar second generation family run full dive shop. They are also one of the largest drysuit sellers in North America. I purchase stuff from them as much for their customer service and the trust that they have gained in my previous purchases as I have for their price. I know that a lot of people on this board feel the same way about places like Scubatoys and Dive Sports. I bet that Scubatoys does a decent amount of business and am curious how their sales compare to LP.
Also I dont get how all the manufactures can not control the grey market. I have never seen a grey market car lot. Bose Audio and Dyson Vacuums have been very effective in limiting grey market sales.
As for price
I had wanted to dive for years. The cost kept me out. I even took a PADI course in college, but couldnt afford the open water trip (rental, lodging, etcetera). I now can afford it and have spent thousands proving that.
Give me some insight.
Thanks,
Soggy