The changing Scuba Industry

[RandomGuy1]

But, if we go to the same store at the same time, it is pretty well assured that if we both buy a can of green beans, we'll get charged the same price.

Unless of course one of you happens to have a loyalty card that gives you a lower price. Happens all the time.

 

[CuzzA]

Cuzza's post was about shop that would match price if you came in and tell them that some other shop is offering better price on same item they sell. If you don't tell, then you pay higher price. That I consider to be a ripoff.

A ripoff? The shop probably doesn't even know someone on the other side of the country just put the same item on sale.

Furthermore, the sign reads "We'll match anyone's price." If you don't want to be bothered by researching if someone, somewhere in the whole country is selling it online for a little cheaper for whatever reason, then don't. I'd say you ripped yourself off.

 

[Sevenrider860]

Unless of course one of you happens to have a loyalty card that gives you a lower price. Happens all the time.

Or if somebody takes the effort to clip (or print) coupons.

 

[cool_hardware52]

But, if we go to the same store at the same time, it is pretty well assured that if we both buy a can of green beans, we'll get charged the same price.

Hardly, rebates, coupons, loyalty programs etc. are all in play.

Rebates and coupons BTW are an effort to leave the published price unchanged while selling at a lower price. The idea is doing so reduces the damage that a "sale" price has on the perceived value of the goods.

Loyalty programs are all of the above, plus an incentive for return business.

Nothing wrong with any of that IMO.

Tobin

 

[cool_hardware52]

"Price matching" is so rampant with consumer electronics that big box stores require a unique sku for the goods sold in their store vs the competitors. For example the *exact* *Same* big screen TV will have a different SKU at WalMart vs Best Buy. That allows one or the other (or both) to advertise *WILL NOT BE UNDERSOLD, $200 CASH BACK IF YOU CAN FIND THIS TV FOR LESS* with zero chance you can because it technically does not exist.

That I find unethical.

Tobin

 

[stuartv]

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.

One more thing: I want to circle back to what I said in my first post or two in this thread:

I was firmly on the same page as you are 2+ years ago when I started diving. I frequent 2 local shops. One is big and prices things just like you're talking about. They have good prices anyway, but they will price match and if they know you and like you they will make you even better deals. I have gotten some deals there that are so good I won't even post what I got and what I paid.

The other shop prices everything they sell at MSRP and gives no discounts or price matching.

2 years ago, I thought that latter shop was crazy and they'd be out of business before too long. As it turns out, they are operating at capacity on training, they have super high diver retention, super high rates of selling full gear sets to new divers, and they sell out their trips. If they could get access to more pool time, I believe they could easily fill all the additional slots on their training schedule, too. Right now, the only get pool time 2 weekends per month. And all their cert dives require traveling a minimum of 2 1/2 hours drive (each way) to go to Lake Phoenix.

After watching them in action for 2 years, they have really won me over to their point of view on the right way for a shop to implement their pricing policy (except for maybe what that price level is - it still just feels like MSRP is a bit too high).

The latter shop does not pay any dividends to whining or people who price shop online. But, they breed loyalty and trust. Nobody that goes there is worried that the shop is going to sell them something then turn around and sell the same thing to someone else for cheap. They don't worry that they need to go online and check prices first, before they come there to buy something. Few things can sour the pleasure of having a shiny new piece of gear as fast as finding out that you could have gotten it a lot cheaper if the shop owner liked you more. At least, that's how it seems to me.

So, the shop that doesn't do discounts has taken 2 years to do it, but they have convinced me that the way they are doing things is better for the industry than the shops that price match and give buddy discounts. The proof is in the pudding.

 

[The Chairman]

including beating out their competition on price.

Competing with price is a fool's errand and a quick road to bankruptcy. Look at the tire industry. You beat them up over prices on their tires and you've won, right? Oh hell no. That $4.00 valve stem cost them 12 cents. Life time balancing? It just keeps you coming back. I know because I retired from Goodyear. While your wheels are off, we're going to sell you brakes or this or that.
If a business can't make a decent return on their investment, then they will close. They'll put that capital to better use somewhere else.

 

[Wookie]

I have ALWAYS disagreed with that. Before I got my own tire machine, when I needed tires changed, I would call around for prices and specifically look for a shop that would charge me for the actual time spent. Not charge me for 2 hours when they only spent 30 minutes on it. If you have invested in tools or skills that allow you to do the job faster, then charge me a higher rate. Don't BS me by handing me a bill for 2 hours when you only spent 30 minutes on it. If the higher rate means the total bill ends up being the same either way, fine. I'd still rather bring my job to the mechanic that can do it faster (whether by virtue of more experience, more skill, better tools, or a combo of all that).

And I prefer it. My Detroit Diesel mechanic made the deal with me lo these 18 years ago that he would charge me book time for any work he did. A complex overhaul of a 12-V71TI is 100 hours. Now, the only thing left to negotiate is his hourly rate. If he were slammed busy, there would be not much room to negotiate, but he isn't, so when he works in the refinery rebuilding their fire pumps, he charges $80 an hour, but when he builds an engine for me, it's 70. If he is truly hungry and I have 2 engines to build he may offer me $65, but I don't want to beat him up too badly, I don't want him working for the local Detroit dealer because they charge me $120....

 

[RandomGuy1]

The other shop prices everything they sell at MSRP and gives no discounts or price matching.

The latter shop does not pay any dividends to whining or people who price shop online. But, they breed loyalty and trust. Nobody that goes there is worried that the shop is going to sell them something then turn around and sell the same thing to someone else for cheap. They don't worry that they need to go online and check prices first, before they come there to buy something. Few things can sour the pleasure of having a shiny new piece of gear as fast as finding out that you could have gotten it a lot cheaper if the shop

So you are not Okay with thinking maybe somebody got a better deal, but you are okay with knowing a bunch of people from other shops got a much better deal? You don't price check because you know you are paying MSRP, which you say yourself is too high? Doesn't make much sense to me.

 

[stuartv]

Unless of course one of you happens to have a loyalty card that gives you a lower price. Happens all the time.

Yes, but if you are a member and getting the lower price, I am free to join the club (a one-time thing) and get the same price as you.

If a shop will let me give them my name, address, and phone number and let me show them that I know how to look up prices on the Internet, and that will entitle me to discounts on all future purchases without me having to do any further price checking online, I'm fine with that, too.

Or if somebody takes the effort to clip (or print) coupons.

I view that kind of like having a sale. I don't have a problem with it as long as everyone can get the same price on sale day.

You will probably then say "how's that different than price-matching Leisure Pro? Everyone can clip the same coupons. Everyone can come on sale day. And, everyone can check LP and get the same price that way, too."

The difference is whether the shop is proactively offering a discount to any and everyone that wants to take it - without regard to the competition - versus a reactionary discount that only comes in response to their competition. If LP has widgets for $100 and your normal price is $150, but you decide to offer them (to any and everyone) for $100 in response to LP, that's cool. If you keep offering them for $150 but then sell them for $100 to just the people that come in and cite LP or people who are your buddies, then that's not cool (in my opinion). At best, you are taking advantage of some people's ignorance.

At the end of the day, do you want people to trust you or not. If you want them to trust you, then on any given day, if you say "this is the price", that needs to be the price for everyone on that day. If you have a coupon out that would apply, maintaining trust would suggest (to me) that you say "this is the price, but we do have a coupon in ScubaShoppers Monthly, if you want to go get a copy of that" or, "we do have a coupon code posted on ScubaBoard, if you want to go look that up." The point of those coupons being to drive people to look at the place where they are published, right? Coupons are basically advertising and that's a 2-way street between you and the ad agent, I think.