Mask Purchase LDS VS Online question (recycled more specifically)

[CrazyScuba]

Crazy, as a LDS owner operator can you explain to us the vast difference between pricing for the same product? Why is it that there is such a huge mark-up at some of the LDS's compared to online. I understand that depending on volume of product that you buy some of the online stores get a little better pricing from the mfg. But wholesale pricing shoud be wholesale pricing. In the perfect retail world there shouldn't be much of a difference from one vender to another on what the mfg charges the vender for the product? Maybe you can help some of us understand. IF people are better educated on the subject then maybe we can help solve the problem.

Wouldn't THAT be a perfect world! No, the prices can be vastly different, and they are in many cases. And thus the "mark-up" may just be the difference in cost that they are paying.
The larger the company, theoretically speaking, the larger the volume they sell and the greater the volume discount they get from the mfc. For small shops like ours, that makes it very difficult to lower our prices to meet the large shops discounted prices because we all have to take into consideration those pesky little details customers don't think about. Things like electricity, water, telephone, internet costs, payroll for employees, taxes, insurance (ouch!), rent on the building, advertising (double ouch!), marketing, shipping and handling costs, etc. Everything we do costs us money, so when we spend an hour (many times SEVERAL hours) talking with a customer to fit them and educate them on proper fit of their gear, we have to be able to cover that payroll cost, even if they only buy a mask or a bottle of defog. (Thus, all those things have to be considered when pricing an item). Or they buy nothing, which happens a lot, because once we educate them, they walk out the door and buy it from someone else down the street or off the internet. We will try to price match, but many times the customer won't ask, they just say they'll "think about it and come back later". The small dive shops can't always afford to drop their prices because they're just trying to keep their doors open and pay the bills, and because they are smaller and sell a smaller volume, they pay a lot more for the product. We have to sell many items at or below cost just to make a sell and show our customers that we really do value their business. We've had several dive shops in the area close the past couple years because they weren't able to do it. That's why we're on the internet now, because after 21 years of excellent customer service, we don't want to close our doors, we love this sport and want it to keep growing. The sad part about it is, if all the LDS's have to close their doors, where are we going to get our air fills? Plus, in a "LIFE SUPPORT SPORT", wouldn't you rather know who the anal retentive technician is that works on your regulator? If the LDS shuts down, you'll be shipping your gear off into the unknown...

Hope this explains it a little better, sorry my answer was so short...
The internet has certainly changed our world tremendously. Sometimes for good, sometimes not so good. But always interesting here on the board! :14:

Britt
CrazyScuba.com :fish:

 

[In-Hoc]

Crazy, Thank you this does shed a little more light on the subject. I don't know about your shop because I have never been there but, my LDS makes it a point to tell their customers that they will try to match pricing but may not always be able to do so but they will do their best. I think that many people are afraid to ask about competitive pricing. I think that people are actually scared that they will offend the shop owner, that they have been looking at other pricing (omg they have been trying to be a smart shopper). I think this fear is the consumers problem and if only they could grow a set of N#%$ and just be honest with the LDS that they are looking to save money is there anything that the LDS can do to come close to the prices they found elsewhere, things would just work out better for everybody.

 

[RJTY]

Imagine this. I walk into my LDS and ask for some pricing. He takes me to the computer to look up the specific item. Then he checks a couple of online prices. He then tells me the prices I could get on line or what I could buy it from him for. Sometimes its the same. Sometimes it slightly higher. Sometimes its much higher.
This is the relationship I have with my LDS. I have yet to buy anything on line.
In the end, I good deal is how both parties feel about the sale. If you feel good about it, then you got a good deal.

 

[CrazyScuba]

Imagine this. I walk into my LDS and ask for some pricing. He takes me to the computer to look up the specific item. Then he checks a couple of online prices. He then tells me the prices I could get on line or what I could buy it from him for. Sometimes its the same. Sometimes it slightly higher. Sometimes its much higher.
This is the relationship I have with my LDS. I have yet to buy anything on line.
In the end, I good deal is how both parties feel about the sale. If you feel good about it, then you got a good deal.

Yes, In-Hoc and RJTY, good points on both parts. We actually do this, but I was so long-winded in my last reply I thought I'd better stop where I was. The problem is, sometimes we can price match and sometimes we can't, due to the volume discount. We do try to educate our customers and we have a computer set-up to show them pricing and we'll pull up the competition websites for them. We have huge signs all over the shop, but a lot of people seem to want to go home and do the searching themselves, then they never come back. Pretty soon it may be a "Wal-mart" shopping experience, where all the little guys are run out of town and only the big dogs are left to play with. We do have many loyal customers, which I am very thankful for. And I really appreciate the customers that are honest with us and come right out and say they found it online or somewhere else for less, then we can talk apples to apples. We just need more customers like you two that will talk about it.

Thanks for all your input, it's good to see that from my perspective too.

Britt
CrazyScuba.com :fish:

 

[cweinstein211]

I read this thread. Saw the comments on using LDS for testing and agree that there is considerable value - advise and pointers - with the face to face contact. I wanted to buy 2 sets of MFS (as my son is a new diver and my old equipment is gone) from the LDS. I did not expect him to match the internet price, but want to meet somewhere in the middle (or a little less). He would not budge. Students got 10% of and that was it. His prices were double the internet prices and I could not justify spending that much more. I would have considered 20-25% more... his loss. I keep trying different LDSs, as I beleive in support local merchants, but they do have to be aware of their competition.

Chuck

 

[CrazyScuba]

Thanks for the input cweinstein211, it's nice to see and hear other experiences. The local LDSs may not be able to price match, but you'd think they'd try to meet you part way. Depends on sales volume and all those other details though.

Good luck and happy diving!

Britt
CrazyScuba.com :fish:

 

[paulwall]

Even if the shops were to order them online for me and charge me $10 more for thier handling it, they would still be about half the price they are charging already.

Careful, you might give someone an idea.

Say I'm an authorized <insert brand name here> and I bought online several <pick a MFS model> and mixed them into my (limited) inventory. I could dilute my costs and lower my net price! Genius! Take advantage of the other guy's discount! I'm setting up my web store tonight!

 

[DrSteve]

I just have to add to the comment about who services your reg...
Service #1 - no problems at all as far as I could see
Service #2 - intermediate pressure was set too low at service 1 (I watched the shop owner do the service). Issue was corrected.
Service 3 - Go in for service, come away, problems...intermediate pressure set way too high and out of spec.
Service 4 - There will be no service 4! I can't trust anyone with my gear and I'm going to have to learn to do it myself.