The endless saga continues...

[Brandon]

First on my list is Scubapro.

I purposefully own no Scubapro or Aqualung branded gear for this very reason.

I do own 4 Suunto instruments, all purchased second hand from other divers here on Scubaboard. I imagine that the low prices I paid for all of it is due to the ridiculous one-owner warranty policy in place by these manufacturers, which greatly affects the resale value. Good deal for me, bad deal for the original purchaser.

Perhaps the new global economy will force them to re-think things. Judging from the recent Scubapro promotion (giving away a MK25/S600 if you buy a pc and computer), it doesn't sound like their sales are what they'd like them to be.

Gee, I wonder why.

-B

 

[Diver0001]

Perhaps the new global economy will force them to re-think things.

I doubt it. The only thing that will force them to change is falling profit margins...

That's one thing that prompted me to say that.

The other is that if we as divers are fed up with it (and I've been reading for years that we're fed up with it) then its up to us to either put our money where our collective mouth is or just continue to suck it up.

So what's it going to be?

We as divers are in a position to go to our LDS's on a mass scale and demand that they drop Scubapro (to pick an example -- we still need to poll who to target first) or lose our business. If enough LDS's will work with enough divers then scubapro will listen and we'll create a chink in the armor.

It will take time and it will take coordination but consumers can drive this change if we really want it.

R..

 

[Thalassamania]

I purposefully own no Scubapro or Aqualung branded gear for this very reason.

Me too, I figure that if their business model is stuck back in the 1950s, so's their gear.

I doubt it. The only thing that will force them to change is falling profit margins...

That's one thing that prompted me to say that.

The other is that if we as divers are fed up with it (and I've been reading for years that we're fed up with it) then its up to us to either put our money where our collective mouth is or just continue to suck it up.

So what's it going to be?

We as divers are in a position to go to our LDS's on a mass scale and demand that they drop Scubapro (to pick an example -- we still need to poll who to target first) or lose our business. If enough LDS's will work with enough divers then scubapro will listen and we'll create a chink in the armor.

It will take time and it will take coordination but consumers can drive this change if we really want it.

R..

As long as divers keep buying into the snob appeal that ScubaPro and USD try to project, those companies will do fine. Things will change when folks realize that other companies make gear that is as good, or better, and don't interfere with market pricing.

 

[tridacna]

Your post reveals your lack of knowledge on this topic... did you mean Leisurepro?

-B

Not true. No lack of knowledge whatsoever. I was the OP. The original comparison was between ST and the LDS. The item is a Whites Fusion Drysuit. ST came in at $1530. LDS at $2230. (With his MEGA discounts).

LDS is completely "dumbfounded" how ST came in so cheaply. ST is an official distributor for Whites.

Let's not drag LP into this.

 

[RonFrank]

Here's how I look at it. You could have a shop full of $500 reg sets and sell none per week at no profit or you could be selling several sets a week at $300 at 20% and making a profit. A no-brainer.

-Or- they can sell 3 sets at $500, and make an extra $600 in profit. They may also offer the first annual service free to make things more appealing even if most regs do not need an annual service after just one year.

The reality is at the LDS I use, that they are selling equipment at these prices. A LOT of folks just don't know that they have anything but local options, or are not comfortable doing business online. That is the market our LDS caters, and they are not interested in catering to folks like myself.

What I don't get is why they don't just stick to their prices in general, and barter when a savvy customer shows up. This is what ST does. I looked at a reg for a SB response that LP was selling fo $350, and ST had it for $460 while the LDS had it for $550 or so. ST will price match, but hey, if they are not asked to they pick up an extra $100+. I guess in the case of my LDS they feel once they sell stuff for less the word would get out.

 

[Brandon]

Not true. No lack of knowledge whatsoever. I was the OP. The original comparison was between ST and the LDS. The item is a Whites Fusion Drysuit. ST came in at $1530. LDS at $2230. (With his MEGA discounts).

LDS is completely "dumbfounded" how ST came in so cheaply. ST is an official distributor for Whites.

Let's not drag LP into this.

My mistake! The "How can ST sell below what dealers allow their shops to sell at" line is what confused me - ST follows their dealer agreements and is allowed to sell at the prices they advertise. Seemed like you thought ST had the same pricing scheme as that other animal, which does sell many items below both dealer and MARP prices and has no "on the books" agreement with many of the brands it sells.

For ST, it's a matter of volume pricing, both on the distribution side and on the sales side. They can sell it for cheaper because they buy more and get a better price, and can accept less of a profit margin on each single piece.

For example:

If I have 5 apples I bought for a dollar, I could sell them all for $2 each and be left with a net increase of $5.

If I can negotiate a deal with my distributor to purchase 50 applies for $.50 each,I can sell them all for $1 each and be left with a net increase of $25.

The profit ratio is the same in both scenarios (100%).
​

In normal economies, the merchant selling his apples for $2 each would simply drop his price and counter with better quality service. But here's how it works with the current industry model:

The $2 apple merchant wants to compete with the $1 apple merchant, but can't possibly do the same amount of volume.

He runs the numbers and figures he could sell the apples for $1.25 and cut his profit margin by 75%, but make the business up elsewhere by offering value-added services and increased margins on other less-contested items.
​

However the industry intervenes and tells the merchant that he must continue to sell apples for $2.00. Merchant 2 has only a few options at this point:

• Build his shop in such a way that his service is so awesome that customers are willing to pay twice as much for their apples.
• Cut his profit margin on non-price restricted items in hopes of offering a total package price that is competitive with the other merchants, but risk not being able to pay the bills.
• Attempt to convince customers that the $1 apples are somewhat inferior, even though they come from the same orchard.

or
​

• Start selling oranges.

It's quite a bit simplified, but that's the jist of it.

-B

 

[diver 85]

Visit with him now cause chances are he won't be there very long for you to enjoy his friendliness---& vica versa....

 

[Eric Sedletzky]

And to add insult to injury, we in California, thanks to that liberal Schwarzenegger, now pay 9 1/4% and in some areas 9.5% sales tax on top of full retail.

 

[tridacna]

It's quite a bit simplified, but that's the jist of it.

-B

No issue. Your explanation is enjoyable. I have a PhD in both Economics and Mathematics. Even so, I am still perplexed by the persistence and legality of MAP pricing. Elasticity anyone?

 

[fireflock]

I am still perplexed by the persistence and legality of MAP pricing.

This article is about toys, but explains why MAP is legal in the US right now.
Why Some Toys Don't Get Discounted - WSJ.com

There was a bill in the Senate last year to change the law (make price fixing illegal) but it went nowhere. S. 148 is this years version of the same.

GovTrack: S. 148: Text of Legislation, Introduced in Senate

That covers legality. I can't explain persistence.