The Aqualung Discussion [ Moved ]

[Brandon]

I'm drafting a letter to their Shareholder's Commitee... let's make this interesting.

Finally graduating is dangerous... I have crazy amounts of free time! I better get a job quick...

(innocent whistle)

-Brandon.

 

[Brandon]

...

That guy looks familar!

Isn't that the Iraqi general who hopped on TV in the initial stages of the newest Iraq war claiming that Iraq wasn't currently under attack by the US?

-Brandon.

 

[jpsexton]

Extract from a TUSA letter from March 2003 (http://www.scubaboard.com/archive/index.php/t-24049.html)

"Since June 2002, we have been recording all serial numbers of regulators and BC's shipped out of TUSA. We will now commence a campaign of purchasing TUSA product from "gray" Internet sites and ebay and tracking the serial numbers to the point of purchase. Any dealer that is found trans-shipping TUSA product to non-authorized dealers or selling it on ebay will be automatically removed as a TUSA dealer."

While this policy helps, it is still not 100% effective. If you do a search on LP you will find many TUSA items for sale. Other companies have similar policies but somehow their stuff shows up as well. Its harder than this to completely eliminate the supply.

In addition to odpting this kind of action to curb the supply, you have to remove the retail price restrictions. That way the dealer can really compete. If the end user can get similar prices from authourized dealers the temptation to buy grey market is eliminated. Phil proved that he could go head to head with these grey market dealers if he was allowed to.

 

[Brandon]

While this policy helps, it is still not 100% effective. If you do a search on LP you will find many TUSA items for sale.

Leisurepro is an authorized dealer for some of the equipment they sell, just not all of it.

TUSA is one of their authorized brands... Scubapro/Aqualung/etc., are not.

-Brandon.

 

[james croft]

I have been using AL gear since 1967. I probably own over a dozen AL regs, only a few of which I bought from a LDS. I like them all. They all work fine, but I get the warm fuzzies looking at the ones I got for almost nothing. The one I most enjoy diving is a double hose reg. I will just plan on diving it from now on. AL won't be getting any more of my cash. If I need parts, a new reg, etc. I have been around long enough to be able to find what I need without paying out the inflated prices that an authorized dealer charges. Free market practices are what makes our economy great.

 

[OkieDiver]

While this policy helps, it is still not 100% effective. If you do a search on LP you will find many TUSA items for sale. ............

I believe LeisurePro IS an authorized dealer and they follow TUSA's MAP policy. I heard this at my LDS quite some time ago.


oops... guess I was a little slow

 

[scubatoys]

When it comes down to it... the manufacturers just need to make a choice. Either get gray market outlets to abide by the same rules as they put on authorized dealers, or have no rules, or stop gray market shops from getting product. Pick one of those and go with it.

I am in a unique position in this industry as I've spent a lot of time talking to the presidents, owners, ceo's for many of the scuba companies. And some of them have admited that they have been lying to their reps and dealers for years, saying they don't know where the gray market sources get their gear...

And I've talked to reps and owners that have had meetings with LP and seen boxes of equipment coming in on trucks that were straight from manufactutrers that "Don't know where they get our product?!"

Be honest, if Atomic can stop them from getting gear, if Oceanic and Aeris can stop them, if Tusa can have them selling at the same MAP price other retailers have to deal with, then why can't scubapro, aqualung, etc? Because they choose not to.

 

[DandyDon]

I knew it, I just knew it...

I am in a unique position in this industry as I've spent a lot of time talking to the presidents, owners, ceo's for many of the scuba companies. And some of them have admited that they have been lying to their reps and dealers for years, saying they don't know where the gray market sources get their gear...

Just couldn't prove it.

Uh, Larry, LP has the new Oceanic VEO dive computers.

This reminds me, I need some things. Call you in a bit...

 

[cerich]

When it comes down to it... the manufacturers just need to make a choice. Either get gray market outlets to abide by the same rules as they put on authorized dealers, or have no rules, or stop gray market shops from getting product. Pick one of those and go with it.

I am in a unique position in this industry as I've spent a lot of time talking to the presidents, owners, ceo's for many of the scuba companies. And some of them have admited that they have been lying to their reps and dealers for years, saying they don't know where the gray market sources get their gear...

And I've talked to reps and owners that have had meetings with LP and seen boxes of equipment coming in on trucks that were straight from manufactutrers that "Don't know where they get our product?!"

Be honest, if Atomic can stop them from getting gear, if Oceanic and Aeris can stop them, if Tusa can have them selling at the same MAP price other retailers have to deal with, then why can't scubapro, aqualung, etc? Because they choose not to.

Thank you for coming on Larry. I know you and I have spoke about this situation a few times in the past and we both shake our head at what some in this industry have been able to get away with.

It would be easy to attribute from an outsiders view your sucess with having the lowest price. That would be such a wrong assumption, competetive prices have gotten people to look at you and superb cust. service is waht has kept them coming and recommending you to others.

As a rep. one of the things we learn is that a med sized city with two GREAT dealers has a great dive market, the same size city with one great and one so so LDS will have an so so market. The same city with only crappy dealers will lose all their business to the internet and diving will shirk from that market. The BOTTOM LINE is the more great shops the better the whole industry is.

Best,

Chris

 

[cerich]

I knew it, I just knew it...

Just couldn't prove it.

Uh, Larry, LP has the new Oceanic VEO dive computers.

This reminds me, I need some things. Call you in a bit...

Not new since over a year ago. They had a crap load of our stuff. Our new boss made policies that made the LDS(and authorized internet dealers) so competetive that a lot of our stuff that Leisure Pro has is the same or higher than the LDS, we almost should have waited a couple months.... We also know where that stock came from and it won't happen again.

The only new products that LP has gotten in the last year+ is the new BCD's we introduced and the Ultradry snorkel. We have purchased some of each (our personal credit cards have been busy...) to find the tags with the serial numbers have been cut out. Having some idea of where they may have come from but no proof, we have done some discrete markings on BCD's we are shipping to our "guess" We will continue to purchase from LP and eventually get the absolute PROOF required to stop that supply. We know another will pop up and the process will repeat but it will never be in volume at all.

Best,

chris