Online Sales - The importance of buying from local businesses

[ReefHound]

Nobody on the planet can run low margins with high service. Not Walmart, not McDonalds, Not FedEx. It just doesn't work like that.

I guess that depends on how you are defining "service". If we define it by price protection and return processing, I get far better "service" at the big box retailers than at mom n pop places. I also tend to get faster repairs. And business doesn't rely on one employee and everything grind to a halt when he is out. My last tank VIP took 3 weeks because "the VIP guy" was away on a trip.

If we define it as product knowledge and the ability to educate the consumer, then yeah you have a point. But those of us that are literate and can do their own product research and educate ourselves don't feel the need to pay more so those that cannot will have a product consultant at their disposal.

 

[fireflock]

Nobody on the planet can run low margins with high service. Not Walmart, not McDonalds, Not FedEx. It just doesn't work like that.

Interesting conjecture. I can name a few places in the non-scuba world that deliver all 3, but people will give some reason that it won't translate to diving.

Instead, take a quick look at the scubatoys.com main page.

They claim 'Best Price Guarantee' aka price or low margins, '5,000,000 dollars of inventory' aka selection, and 'Unparalleled Customer Service' including a toll-free number where you can call and get advice from a real person. Ask around and I bet you'll find that they do a pretty good job of delivering all 3.

I'll grant you this - it's not easy. If it was easy then more retailers would do it.

Rich

 

[redacted]

Low margins are a relative thing. A small dive shop whose business model (whether they know it or not) requires them to operate at a 50% margin will slowly die if all they can produce is a 40% margin. OTOH a large shop (most with a commanding internet presence) may have a business model (they probably have it documented and reviewed) that only requires a 15% margin. And when they in fact operate with a 25% margin they are prospering. There is a reason you won't find domestic kittens living amongst a pride of lions.

 

[Web Monkey]

I guess that depends on how you are defining "service". If we define it by price protection and return processing, I get far better "service" at the big box retailers than at mom n pop places. I also tend to get faster repairs. And business doesn't rely on one employee and everything grind to a halt when he is out. My last tank VIP took 3 weeks because "the VIP guy" was away on a trip.

I define "service" as an interaction with a person who has the knowledge and abilities required to fulfill my need within in an acceptable amount of time.

I'm referring to someone who knows that my regulator problem is because of a design/manufacturing defect and that there's a fix for it and that they have the part and will take care of it right away. Not just someone with an opinion on which fin is best.

This type of service costs money to maintain and can't be done on a "high-volume/low profit" basis because higher volumes require more skilled people, which cost more money.

It's exactly why Walmart is cheap, but if you ask the guy in housewares what angle you should reshapen your knife to, you'll get a blank look, while if you ask the guy at knifemerchant.com, you'll get a 15 minute discussion on the merits of various angles, vs what you're cutting.

Terry

 

[ReefHound]

Like I said, if it's an education you're looking for then go for the higher price but don't whine because those of us not looking for that 15 minute discussion don't feel like paying for it. The reason the big chain retailers are dominating is because most people just want a cheaper knife, not a seminar on how to sharpen it.

As for your "definition", I get that quality of service at many higher-volume lower-margin places, like Scubatoys, so your point doesn't always hold true. The difference in what people "need" and what they "want" is what they are willing to pay for. For instance, I find the week turnaround on reg repair from Scubatoys to be "acceptable" (more than, actually). I have backups and don't wait until 2 days before a big trip to decide to get it serviced. I might be able to get it done in 2 or 3 days at a local shop (though unlikely) but if it costs me more I'd just be paying for service I don't really need. I'm not going to subsidize those who need their hands held.

 

[redacted]

I define "service" as an interaction with a person who has the knowledge and abilities required to fulfill my need within in an acceptable amount of time.

I'm referring to someone who knows that my regulator problem is because of a design/manufacturing defect and that there's a fix for it and that they have the part and will take care of it right away. Not just someone with an opinion on which fin is best.

So you are not talking about most smaller LDSs.

I don't want or need that kind of service in general. And when I do, I'll go find an appropriate source (like this board).

So I really don't want to be paying a premium for my gas, mask defog, or scuba decal for something else I don't need.

 

[Coalcracker]

Nobody on the planet can run low margins with high service. Not Walmart, not McDonalds, Not FedEx. It just doesn't work like that.
Terry

Yes, it can easily work like that. Part of my day job is dealing with various retail folks. The most successful in the tri-state area have large brick and mortar stores, good advice and service, and great pricing. These stores range from rather large folks like the good folks at:Weis Markets: Corporate Information
150+ stores staffed with locals and lots of selection and always contributing back to the community. On the other end of the spectrum are great local places such as Harry's Grill in Shamokin: "Great food at coal region prices".

Good service, good prices, and good selection happens every day.

It does seem that many local dive stores miss on most of the above.

 

[Web Monkey]

For instance, I find the week turnaround on reg repair from Scubatoys to be "acceptable" (more than, actually). I have backups and don't wait until 2 days before a big trip to decide to get it serviced. I might be able to get it done in 2 or 3 days at a local shop (though unlikely) but if it costs me more I'd just be paying for service I don't really need. I'm not going to subsidize those who need their hands held.

I guess we have different levels of "acceptable". When I need service on something, I drop it off on the way to work, and pick it up on the way home.

Terry

 

[pir8]

How can you compare a Dive Shop to a Chain Store Restaurant? They aren't even close in their services offered. Everyone needs food whereas Scuba has a very limited clientel.

 

[redacted]

How can you compare a Dive Shop to a Chain Store Restaurant? They aren't even close in their services offered. Everyone needs food whereas Scuba has a very limited clientel.

Do you mean because the restaurants (chain store and Ma & Pop) have "Good service, good prices, and good selection happens every day"? What does the limited clientel have to do with it other than the number of shops that can be supported?