Major Industry Change re: Online Scuba Sales....

[ReefHound]

I tried the "put the lowest price" to start gear I sell in the shop. People would then still ask for a discount! Now I ring stuff up at retail , give them a discount and it shows up on the receipt the amount of money they saved. It has proven to be much more effective. It's a perception, marketers have been doing it for years, SALE.

That's because they've been trained that a LDS price tag is ridiculously inflated! It's like the sticker on a new car. I'll bet when they go to LP they don't send emails asking for a lower price. They certainly don't at the retail chain sporting goods or electronics stores. Those places look at their costs and set a price based on their competition and their margins, the customer chooses to pay it or not. None of which precludes them from having a "sale".

I like your general approach to business, wish you were in Houston. While I might prefer the lowest price on the sticker, I don't expect perfect compliance with my preferences. I tried a few times in the past getting a LDS here to match or compete. All I got was a lecture or a sob story. I haven't asked everyone and I haven't asked lately. I'm through with hearing BS about the evils of online gear or being made to feel like I'm insulting them or trying to steal the shoes off their kids' feet.

You may not be like this (I'm pretty sure you're not). Many LDS may not. But there's a cumulative image that has been formed that hurts the good guys. What image do people have of used car salesmen? I'm sure there are honest ones not trying to unload a lemon on some unsuspecting person but you can't approach one without being "on guard". And it's this "on guard" posture that I get sick of when dealing with dive shops.

I have an LDS here that I prefer over the others. What business I do locally, I do with them. The people, without exception, are friendly and fun to be around. But I still get that "on guard" sensation, and fear even mentioningthe word "online".

 

[superstar]

No. The Supreme Court dealt with this issue in United States v. Colgate, among others. Manufacturers have a right to name the terms and conditions on which it will provide their product, and one of these conditions can be price. If a business violates the terms of their agreement, the manufacture can refuse to provide their product. They CANNOT however coerce the business to sell at their MSRP and cannot threaten to stop selling to them if they don't comply with MSRP (United States v. Park, Davis & Co.). If the original agreement says "You must sell at MSRP or we will not provide our product," this is not coercion. I apologize, anti-trust litigation is not my specialty.

The manufacturers must be happy with the way internet sales are going if they provide them with the product and let them discount.

 

[cerich]

No. The Supreme Court dealt with this issue in United States v. Colgate, among others. Manufacturers have a right to name the terms and conditions on which it will provide their product, and one of these conditions can be price. If a business violates the terms of their agreement, the manufacture can refuse to provide their product. They CANNOT however coerce the business to sell at their MSRP and cannot threaten to stop selling to them if they don't comply with MSRP (United States v. Park, Davis & Co.). If the original agreement says "You must sell at MSRP or we will not provide our product," this is not coercion. I apologize, anti-trust litigation is not my specialty.

Beech Nut [362 U.S. 29, 41] is closer than Park davis and Co.

 

[cerich]

The manufacturers must be happy with the way internet sales are going if they provide them with the product and let them discount.

We're happy when our dealers can compete and be profitable. Internet or not.

 

[cerich]

You may not be like this (I'm pretty sure you're not). Many LDS may not. But there's a cumulative image that has been formed that hurts the good guys. What image do people have of used car salesmen? I'm sure there are honest ones not trying to unload a lemon on some unsuspecting person but you can't approach one without being "on guard". And it's this "on guard" posture that I get sick of when dealing with dive shops.

I have an LDS here that I prefer over the others. What business I do locally, I do with them. The people, without exception, are friendly and fun to be around. But I still get that "on guard" sensation, and fear even mentioningthe word "online".

Exactly why PADI is encouraging the LDS to be proactive, not reactive.

 

[scubadobadoo]

But I still get that "on guard" sensation, and fear even mentioningthe word "online".

Silly huh? I don't even go into LDS's anymore unless I have to and this is sad because I would love to meet more local divers and support a local business but I won't suffer the guilt that frequently goes with that reality. The really funny part is that these same internet hating people will then go home and surf the web and send emails for 3 hrs.

 

[scubadobadoo]

Exactly why PADI is encouraging the LDS to be proactive, not reactive.

Yep and a smart move too. They see the light and hope that all the LDS's that remain will see the light too. I believe somebody said earlier that PADI didn't really have a stake here but of course that isn't true.

 

[cerich]

Yep and a smart move too. They see the light and hope that all the LDS's that remain will see the light too. I believe somebody said earlier that PADI didn't really have a stake here but of course that isn't true.

We had this scheduled before the PADI announcement. If anybody will be at DEMA please attend.

DEMA BOOTH #1519
Leading dive equipment manufacturer works to help dive retailers improve sales, customer service and PROFITS



Oceanic Worldwide has always been on the leading edge of product technology. At DEMA Show 2006, Oceanic will show that the company is also on the leading edge in INTERNET technology. The company will be sponsoring a special seminar titled, “Making the Internet Work for You.”

Being presented Thursday November 9 from 10:00 AM – 12:00 PM at the Convention Center Room S220E. This seminar will help retailers and other DEMA Show attendees learn how successful online retailers are using the Internet. Specific topics will teach retailers how to successfully drive online sales, increase in-store traffic, retain existing customers and generate new customers – all through the use of the Internet.


Oceanic Worldwide, which has a highly-successful and retailer-friendly online sales program for its retailers, has shown that the Internet does not have to be avoided but can actually be embraced by the recreational scuba diving community.

According to Doug Krause, Oceanic’s Marketing Manager, “There are incredible opportunities to use modern technology to improve how today’s dive retailers do business. The Internet, when used properly, can be a highly effective tool. We’ve brought together leaders from various segments of the online community to discuss retailers concerns, new ideas, trends and much more.”

Krause said the highly-anticipated session was already filling up quickly and he encouraged interested retailers to sign up by going to: www.OceanicWorldwide.com/dema

You may find additional seminar details, schedule and locations at:

 

[jeraldjcook]

Beech Nut [362 U.S. 29, 41] is closer than Park davis and Co.

After reading Beech Nut and Park, Davis & Co. more closely, I'm not sure either would apply as in both cases there was no agreement between the two parties. I would imagine that manufacturers have all LDSs sign some sort of agreement. BTW, you realize 362 U.S. 29 is the Park, Davis & Co. case right? Law background?

 

[scubadobadoo]

We had this scheduled before the PADI announcement. If anybody will be at DEMA please attend.

DEMA BOOTH #1519
Leading dive equipment manufacturer works to help dive retailers improve sales, customer service and PROFITS



Oceanic Worldwide has always been on the leading edge of product technology. At DEMA Show 2006, Oceanic will show that the company is also on the leading edge in INTERNET technology. The company will be sponsoring a special seminar titled, “Making the Internet Work for You.”

Being presented Thursday November 9 from 10:00 AM – 12:00 PM at the Convention Center Room S220E. This seminar will help retailers and other DEMA Show attendees learn how successful online retailers are using the Internet. Specific topics will teach retailers how to successfully drive online sales, increase in-store traffic, retain existing customers and generate new customers – all through the use of the Internet.


Oceanic Worldwide, which has a highly-successful and retailer-friendly online sales program for its retailers, has shown that the Internet does not have to be avoided but can actually be embraced by the recreational scuba diving community.

According to Doug Krause, Oceanic’s Marketing Manager, “There are incredible opportunities to use modern technology to improve how today’s dive retailers do business. The Internet, when used properly, can be a highly effective tool. We’ve brought together leaders from various segments of the online community to discuss retailers concerns, new ideas, trends and much more.”

Krause said the highly-anticipated session was already filling up quickly and he encouraged interested retailers to sign up by going to: www.OceanicWorldwide.com/dema

You may find additional seminar details, schedule and locations at:

Excellent stuff! Good for you guys and even better for the rest of us! The best of both worlds! A LDS that embraces the internet allowing for that personal experience AND the pricing/selection.