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

[Puffer Fish]

so PADI just discovered "click and morter" which is something like an 8 year old term...

they're less than a decade behind the curve now...

Lamont - still faster than some.

 

[xiSkiGuy]

I'm not surprised at all. Their position has no potential to cause them any harm, since they don't sell equipment.

I suspect SCUBA shops will gradually move towards charging reasonable (non-subsidised) prices for training, service and air and only sell equipment as a favor to their training/service/air customers.

Most equipment will ultimately end up coming from a few large internet vendors, since the small vendors can't compete either in person or online.

This will probably mean that instead of a $500 OW class and $2000 in equipment, it will be a $1000 OW class and $1500 in equipment. The people who will really get hurt will be the DSs that don't do a lot of training.

Air fills and service will probably go up quite a bit, since the cost will no longer be subsidised by equipment sales.

Ultimately, it's going to be terrible for the manufacturers, since a few large vendors or a buying group can dictate terms that the manufacturers can't refuse, but also can't live with. IE. If they sell at the price demanded, they lose money and go out of business in a few years. If they don't sell, they lose almost all their sales and go out of business now.

I'm not just pulling this out of my *****. I've been in retail and manufacturing for a long time, and have seen this cycle repeat several times in different product areas.

Terry

PS. "*****" above was originally an "a" followed by two asterisks and was changed by vBulletin.

I think your post is spot on, Terry.

Placing the merits of internet vs. LDS aside, I don't see how every LDS becoming an e-tailer is going to help the industry. There is only room for so many internet retailers in a given market segment. The twenty or so that spend the most for payperclicks or other advertising will get the sales and the rest will still go under or find other ways to survive (the higher air fills and training that Terry mentioned).

 

[MXGratefulDiver]

Does anyone see parallels here to how the industry reacted to recreational nitrox use in the '90's? First there was generalized resistance. Then a few innovators came out and offered it. They were "punished" by the industry giants ... but they prospered because they were offering what the divers wanted. Finally one of the "big boys" came onboard ... and within a couple of years, the same folks who were driving the opposition were acting like they invented the idea.

Seems to be how the scuba industry operates ... they get dragged, kicking and screaming, into the present ...

... Bob (Grateful Diver)

 

[lamont]

Does anyone see parallels here to how the industry reacted to recreational nitrox use in the '90's? First there was generalized resistance. Then a few innovators came out and offered it. They were "punished" by the industry giants ... but they prospered because they were offering what the divers wanted. Finally one of the "big boys" came onboard ... and within a couple of years, the same folks who were driving the opposition were acting like they invented the idea.

Seems to be how the scuba industry operates ... they get dragged, kicking and screaming, into the present ...

... Bob (Grateful Diver)

So, in another 8 years we should have the PADI BP/W and Long Hose specialty course...

 

[daniel f aleman]

Well, PADI has no responsibility to any manufacturer - I think that the release is intended to push their LDS affiliates to remain competitive, and challenging manufacturers' retail policies is a part. Without LDS affiliation (the real agency power-base) PADI's influence declines proportionally.

 

[Scuba_Steve]

So, in another 8 years we should have the PADI BP/W and Long Hose specialty course...

Easy, easy Einstein, let's not get crazy talking rediculous like that.

I also agree with Terry here. This will do nothing with respect to online gear sales and the saving of the LDS in that regard.

Much ado about nothing.

 

[PhilEllis]

Changes at PADI can clearly result in changes in the large scuba manufacturers. Remember, this is really a small, close-knit group of peope who run everything from the supply side of this industry. PADI making this change will get EVERYONE thinking.......and thinking hard.

Once Atomic announces an internet program this fall, following closely behind the PADI announcement, it will get really, really, really hard for everyone else to maintain their strict stance against it. (Atomic isn't an industry giant, but they do have influence because of their marketing model)

Phil Ellis

 

[Scuba_Steve]

I'm a simple guy here Phil, break it down for me.

The first order of preservation as far as Padi is concerned, is Padi.

This is as it should be.

My thoughts are that Padi's little brother and cheap labour is the LDS.

Padi also knows that the LDS can'tmake ends meet on the price of the courses, and that's not going to change overnight.

I can't imagine Padi would knife their brother, thereby hurting themselves, by endorsing internet GEAR sales which would in the end see a whole pile of LDS hurting even more than they are already.

I just don't see it.

There would have to be something on the gear side of things for the LDS, IE allow discounting etc...........bascially allowing the LDS to set their own prices and advert it as such.

Help me out here Phil.

EDIT: As Terry says below, I just don't see the connection.

 

[Web Monkey]

Changes at PADI can clearly result in changes in the large scuba manufacturers. Remember, this is really a small, close-knit group of peope who run everything from the supply side of this industry. PADI making this change will get EVERYONE thinking.......and thinking hard.

Although facinating, PADI has no stake in this issue. They don't buy, sell or manufacture equipment.

Terry

 

[rongoodman]

I spoke to my LDS last week about a replacing my AquaLung Octo with a regular second stage. He told me he'd check on prices and get back to me. So far, no second stage, no phone call. In this case I'm not in a real hurry, but had I ordered the equivalent from an on-line vendor, I would have had it in two days. Lower prices are OK, but the real advantage of the Net is that you can usually find what you want/need, and get it quickly. Most brick and mortor stores just can't afford to maintain any kind of inventory.