We may be really focused on price but a lot of people- including myself- buy a product and choose a retailer for quality and customer service. If you read through the various posts on ScubaBoard it seems that there is as much dissatisfaction over customer service as there is on price. With poor customer service you better be the only available option, compensate with rock bottom prices, or have an endless supply of first time customers to even have a chance at long term success.
Diving for me is a pure hobby and is also partly a social activity (I dont dive solo), so the relationships do count. I have been in dive shops that give the scare tactics and seem to look for the negative in everything they dont sell and even if those shops had the lowest prices I dont trust them and wont use them! When I shop from places like DiveTank or my local shop (Underwater Works) they never tell how I am going to die if I buy from someone else or used equipment. When I bought a used pony and regulator, Underwater Works spent a lot of time helping me set it up and they didnt immediately make much on that service but, since then I have spent over $2000 in their shop and had a few friends go to them for certification.
As I mentioned in an earlier post I buy my home computer parts from a small local shop. The owner has an internet store that I have used a couple of times, but I use him because I trust him, he has good customer service, and fair prices. In the past 5 years I have probably sent 20 people to him for a custom built computer. I cannot think of an industry that has faced more of the pressures from large chain stores and internet sales than home computers. In the age of NewEgg, Frys, and Best Buy his little locally owned shop has boomed. He had to rent the space next to him just for the service techs he had to hire to have a place to work. He now has more work than he can handle and is struggling to keep on top of the growth he is experiencing. There is no way that he is buying the volumes that the big box and large internet stores are buying and he is even competing against manufacturers such as Dell and Gateway, but some how his little business is still booming.
So do I think that there will be a consolidation of the market? Yes. I think from what I read on ScubaBoard and have personally experienced there are a lot of shops that havent figured out that their business is at the mercy of its customers not the other way around. With the internet there is an increase in competition and this will filter out a layer of poor shops. Many shops may close, some may merge; but I think the consolidation will continue to include small independent shops that can find a successful model like Underwater Works and DiveTank regardless of the competition they face.
Couldnt help myself and had to add to the mess.
Soggy
By the way to me good customer service definitely includes a price that feels fair.