The changing Scuba Industry

Please register or login

Welcome to ScubaBoard, the world's largest scuba diving community. Registration is not required to read the forums, but we encourage you to join. Joining has its benefits and enables you to participate in the discussions.

Benefits of registering include

  • Ability to post and comment on topics and discussions.
  • A Free photo gallery to share your dive photos with the world.
  • You can make this box go away

Joining is quick and easy. Log in or Register now!

Really? So some discounter buys a close out and offers XX fins for 40% price.

A retailer is supposed to:

1) Know that
2) Re price his offerings to under his costs

Or he is screwing his regular customers?

Details please.


How do I price my goods? My costs + a fair profit.

They either sell or they don't. I do know the costs associated with a program of perpetual price surveys, updating websites and price databases and dealer price lists on a daily basis would force an increase in prices across the board.

Tobin
I price my goods the same way. My costs plus a fair profit. And I sell for that price. If I am going to sell to the price shoppers for less, then I have to sell to my trusting customers for more, to keep that same fair profit. I am usually selling for more than my customers could buy the goods for if they shopped enough. If I don't offer enough value to support that then I will go out of business. I refuse to sell on a 2 tier system where the whiners get a lower price than the good customers. And I buy the same way.
 
Tobin, I understand your point. Like I said I will pay a premium to a LDS, within some boundaries.
Point is I expect you to keep those prices same for all customers, if market conditions are the same.
I do not know how business in US is done, but here we have customer protection laws which say that if I bought item X at price Y, they can not sell you item X at price Y+Z, unless there has being changes in their operating expenses. All customers must be treated the same, whether they've done price matching search or not.

Customer can ask for a discount, but price matching is not discount, it's trying to make a sale in any way possible. Like @stuartv said, if I found that you sold me same item for higher price than you did to him, do not blame me if I choose to buy online next time.

Here in the US we (in theory) have free markets, in fact certain schemes to dictate uniform pricing are illegal, google "price fixing"

No retailer has any responsibility to "make a sale in any way possible" I'd suggest doing so is a great way to operate at a loss.

I've never suggested anyone be blamed for any free choice they make regarding where to buy anything.

A retailer that offers to price match is simply shifting the responsibility to the customer to do their own price survey. No doubt that's a far cheaper alternative *for everybody* than tasking an employee with doing so for every item every day. How that equals a "rip off" escapes me.

Tobin
 
And they shouldn't do it. All they can do is to lower prices within their profit margin. But if they do for me, but don't do it for you, they are screwing you over. Agree?

An offer to price match may be unwise. It looks a bit desperate, and is actually telegraphing that lower prices maybe available elsewhere.

Having said that if the offer is universal, available to all customers, it's pretty hard to argue that those who fail to take advantage are being ripped off.

If I offer a rebate, or coupon available to all, and some use it and others don't have I "ripped off" anybody? Rebates are redeemed at very low rates, in single digits BTW.

Tobin
 
Once you discover the value in used scuba gear, a whole new market of buying opportunities opens up.

I am price sensetive. But I don't mind paying a bit more for convience or to support local merchants when local has some value. But, when I was able save 40% on a new regulator online, the decision was easy. If a busiiness can be successful with fixed prices, then that is fine. But, if they drive customers away with high prices and market complaints, maybe it is better to just let someone who knows better fill their void.

Customers have the money and there are plenty of sellers.
 
Last edited by a moderator:
I can see the changes too, and I blame this on growing income inequality. The luxury branch of scuba industry is (and will) only do better; however, Florida-Bahamas-Caribbean is not a top destination for them. If money is not an issue for you, why would you go to a place with only 600 fish species, if you can go to a place with 3000+ species instead? And if you travel 1st class, you don't even get jet legged as much. The American middle class, however, is now back to the early 90s in their income, so they are forced to go to cheaper places with lots of shore diving, like Curacao, or dive Blue Heron Bridge. I can tell that there are way more divers in both places I mentioned than several years ago. The parking lot near the bridge is now as packed on weekdays as it used to be on weekends 5 years ago. And on Saturday I had to park a block away (I would've been underwater sooner if I just walked across the bridge from Force-E with my gear :)) The publicity that BHB got via Scubaboard played its part, no doubt, but I think this is also economy. So folks keep diving, they just do it differently.

You are right about the younger crowd, Wookie. Yuppies think differently than normal people :) They want to try something new every day. Look at their favorite shop, Trader's Joe, for example. They still have black tea and green tea, like we the normal people drink; but most of their stock is flavored tea, like Mango-Cinnamon-Spice Chai, etc. Yuppies buy this kind of stuff because this makes them feel special. They think like kids, and kids like new toys. The more new toys, the better, and even better if you have toys other kids do not have. They do not eat just chocolate; they eat spicy jalapeno chocolate or sea salt chocolate because they are desperately trying to be different and they achieve this through different type of consumerism. So they go to places like Costa Rica where they dive couple of times, then ride ziplines and take a trip to volcano. This gives them more toy equivalents to boast about when they come back. We do the same when we visit places with lots to do like Hawaii or the above mentioned Costa Rica (except for the silly ziplines, of course), but they do this everywhere, and if in some place you can only buy one toy equivalent, like diving, they do not go there. For us, multitasking vacation is opportunism, for them it is strategy. You can't get addicted to diving if this feels like playing with the same toy all your life.
 
An offer to price match may be unwise. It looks a bit desperate, and is actually telegraphing that lower prices maybe available elsewhere.

Having said that if the offer is universal, available to all customers, it's pretty hard to argue that those who fail to take advantage are being ripped off.

If I offer a rebate, or coupon available to all, and some use it and others don't have I "ripped off" anybody? Rebates are redeemed at very low rates, in single digits BTW.

Tobin
Now I agree with you.

We are part of a group that buys tires together. We can buy tires that are made by the same manufacturer with another name, a "second" line. They cost us a dollar or two less per tire. Some of the stores in our group sell the second line for quite a bit less money, taking a smaller markup. The purpose is to be able to sell to the people who want the "best" tire and are willing to pay for it and to also sell to the price shoppers and still make the sale even though it is at a lower margin. So inventory costs go way up by stocking two brands in the same size but you make both sales. One with a good margin, and one with an OK margin without having to resort to selling the same tire to different customers for different prices. We don't do this, but in our small market we don't need to.
 
I price my goods the same way. My costs plus a fair profit. And I sell for that price. If I am going to sell to the price shoppers for less, then I have to sell to my trusting customers for more, to keep that same fair profit. I am usually selling for more than my customers could buy the goods for if they shopped enough. If I don't offer enough value to support that then I will go out of business. I refuse to sell on a 2 tier system where the whiners get a lower price than the good customers. And I buy the same way.

The key word being VALUE. Price is one thing, value is another. I'm one that doesn't mind paying "a little more" for it. Some shop owners/business's "get it, and provide it & some don't". Some consumers "get it, appreciate it and some don't".
 
The key word being VALUE. Price is one thing, value is another. I'm one that doesn't mind paying "a little more" for it. Some shop owners/business's "get it, and provide it & some don't". Some consumers "get it, appreciate it and some don't".

Along this line. I am a Costco shopper. They probably capture a lot of the demographic that the scuba industry wants to grab. The reason I shop at costco is for value, not price. I want a quality product at a fair price. I am not going to pay top dollar for top of the line in most cases, but I am also not looking for cheap. I own more Kirkland products than I can count for this reason. I suspect there would be a lot to learn reading the volumes of info that is out there on Costco and their customers. They have been a case study on spending and markets for some time. I dont see the industry being able to "adopt" the costco model, but there are some good lessons there that likely could be applied in regards to spending habits and customer loyalty.
 
If a shop has a pricing policy of "as low as we can go and still have a sustainable business
Here's your problem. Why would a shop do this? Why would anyone want to do this? But, it seems you're OK with shops getting different prices but not the consumer? Why? Caveat emptor. If you've done your homework, you should benefit from But c

For thirty years, I worked in the automotive field and many of those years, I made my living off of a flat rate manual. Replacing a muffler bearing might call for 2.3 hours. That's predicated on an average mechanic using hand tools. So, I invested in a lot of tools, including fast air tools. Now the job only takes me a half hour, because I made such an investment. Should I charge only a half hour? That's not a good return on my investment, is it? Should I give my loyal customers a break? I might. What if they're buying other services from me at the same time? Sure. There's a point at which I've got to protect my investment. That's the way the free enterprise works. I like it like that.
 
Remember Larry from ScubaToys? He's no longer a part of that business, but I remember a discussion from him I had a long time ago. Rather than fight his customers, he fought his suppliers. He would have the argument once than a hundred times. He had to make money, so he did it by beating up the manufacturers and using some awesome motivations here on SB. They're still an awesome shop and you can bet they'll be reading this thread and this post. They pay attention.
 
https://www.shearwater.com/products/swift/

Back
Top Bottom