The Great local dive shop vs. online debate

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Hi Mike,

You seem to be reading more into my post than what I intended.

First off, I'm in complete agreement with you that it's unethical to go into a dive shop for the express purpose of trying on gear and picking the owner/employee's brain, yet knowing you'll be buying it online. I simply wouldn't do that. Chitchatting about the new gear arrivals while getting a fill is a different matter, however.

But, just because I ask for or you volunteer the information, doesn't make me duty-bound to buy from you, as long as I haven't already determined I'll buy elsewhere. When I bought my first OW gear, I shopped the packages around extensively, inviting the dive shops to bid on them and make suggestions as they saw fit. I had no idea from whom I'd be buying until the process was finished. You wouldn't realistically expect me to stop the process at the first shop I visited and buy there, would you?

As for the gear consulting fee, how are you going to compete with the free advice available all over the net?

And wouldn't you consider it unethical for someone to charge a consulting fee when he/she would have a clear-cut conflict of interest to sell whatever gives the highest return or happens to be in stock...instead of what the customer really needs?

As for the aftermarket service, that's impressive. It's undoubtedly a great way to build loyalty and confidence in your products and services. For me, that's the sort of value-added stuff that can make the difference over mailorder, though if the prices are still too high.....

Originally posted by MikeFerrara
Oh..and word just in from the accountant...The final tally indicates that the store had $6,600 profit for 2001. I must be ripping someone off big time!
From what I've read in the archives, you seem to be a very ethical guy, and run the sort of LDS I'd love to frequent. Your P&L are none of my business, but if some of the unscrupulous dive shop owners I've met gave me the line above, I'd have to ask how much they're paying themselves in wages and in consulting fees before I'd accept it as a meaningful statement.

This is in no way intended as a slur on you, Mike. Like I said, I think you're an ethical guy (based on the archives), and I really feel for LDS operators like yourself who are having to deal with internet/mailorder/telephone sales while under the onerous pricing constraints the manufacturers are putting on you.

Best of luck to you.
 
metridium,

I wasn't reading more into your post. My post was for everyone in general. My only reason for mentioning the profit was to make the point that there isn't any. And to answer the question you didn't really ask. I paid myself no salery at all. I work a job during the day and my wife is in the store full time. She also was paid no salery. The six thousand is total taxable income on my personal taxe return that resulted from store income. The point is that in the current climat this is not a business one enters thinking they are going to make money. My only other point is that people should be willing to pay for what they receive. It's ok to provide a quote at no cost but many people make a hoby out of picking my brain. I'm not refering to a 15 min chat. They sit down get comfy and make an evening of it. When they are satisfied that they know enough they go home get online and make their purchase. I am certainly not saying that you do this but many do. The most sought after services that we provide are the ones that are currently loss leaders or just free and it sells like crazy ( for free). For potential customers who don't believe my description of the dive retail industry I am more than willing to show dealer contracts and dealer costs. I am willing to do this because I get the impression that many don't believe us period. There are also many manufacturers that I refuse to do business with and the list is growing. There is much talk lately about the evils of the training agencies but the equipment manufacturers and distributers are far worse.
 
I've been doing a lot of thinking about this lately.
I was looking to buy 2 Zeagle Rangers. However, only 1 of the 3 LDS's carry them. And I will NOT support this LDS after the way they have treated me in the past (There's a thread I started about it somewhere here).
So I had 2 choices: I was contacted by an LDS in Ontario (I'm in Edmonton), who after reading the previously mentioned thread (and before I bought the rangers), PM'd me with a simple message asking me to consider them next time I'm in the market for something.

Well, to be perfectly honest my expectations were extremely low. So I priced out the ranger at Leisurepro, and a guy who sold off of Ebay. Then I contacted the LDS in Ontario and was quite suprised with the quote they got back to me. It was only about $70 CDN ($44 US) per BCD higher than the online guy. So I ended up buying from this LDS. For the extra $140 extra I spent, I got a number of things:

1) I kept the money in Canada, which I like
2) I bought from an actual dive operation that supports diving in Canada
3) I got courteous and quick responses to my emails
4) I bought from an operation than will be likely be there tomorrow, and a year from now, should I have any problems. I certainly don't doubt that if something goes wrong they would be accomodating.
5) Buying from the LDS vrs the online guy gave me more security that I would actually get the BCD's after I paid.

In any case, this made me happy to buy from as close to an LDS that I have. As well, any friends in Edmonton looking for equipment will certainly get refered to by me.

BTW, the LDS that I used does have a website, but not true online sales.

As for the whole issue of people using LDS's for free, I understand where Mike is coming from. However, at least in my case, I get much better and reliable info online from places like this than from the LDS. So as a business model, having LDS's charge for advice won't work.

I think the whole problem is the way the manufacturer's operate. I believe they are driving the LDS's out of business. They cannot expect a small LDS to buy higher wholesale prices than large volume online stores, and still compete. And what I don't understand is why they do this. Don't they want their products to be showcased at the LDS? Its free advertising. It seems to me like they're slitting their own throats with this policy.

Darryl
 
What's the true definition of buying online anyway?

Is it only if you purchase from an online store without a physical storefront, which ships directly to you?

What about physical dive stores that ship anywhere?

What about telephone or mail orders?

Is it an online sale if anything's shipped directly to you?


Originally posted by dvleemin
Buying from the LDS vrs the online guy gave me more security that I would actually get the BCD's after I paid.

BTW, the LDS that I used does have a website, but not true online sales.
How is that different from buying online, exactly?
 
Originally posted by metridium

How is that different from buying online, exactly?

I guess my definition of an LDS is:

1) They have a 'bricks and mortor' store
2) In that store they provide ALL dive services, from air fills, to equip sales, to training, advice, etc
3) they don't derive their income primarily from online sales.

I guess its a tough line to draw bewteen LDS and online. I've heard that leisurepro does have a store as well, yet I certainly don't consider them an LDS. Not sure how'd they'd match up against my 3 criteria.

I'd like to hear other peoples opinion on this.

Darryl
 
And while we're at it, how do we define Local Dive Shops?

Some here don't have a dive shop within a hundred miles or more.

Others have ones close by, but instead of doing business with them, they choose other shops up to a hundred miles away or more....and they consider those shops to be their LDS.

And then there are those whose LDS is close by but also does internet/mailorder/telephone sales.

Anyone want to define these terms precisely?



Darryl: Oops, didn't see your post above in time. Sorry.
 
Originally posted by dvleemin
I think more or less the global definition is that if you make a purchase in a store that you drove to from your house, it would be considered an LDS.
Kind of confuses the issue when I buy gear on a business trip in an area I fly to frequently, doesn't it? :)

So if anytime I buy gear from a place I'm not physically in, it's considered an "online sale"?

If so, I definitely need to change my vote to 50-75%.
 
Originally posted by metridium
What's the true definition of buying online anyway?

Is it only if you purchase from an online store without a physical storefront, which ships directly to you?

What about physical dive stores that ship anywhere?

What about telephone or mail orders?

Is it an online sale if anything's shipped directly to you?



How is that different from buying online, exactly?

I know where you're coming from. I spent most of last year traveling as well, and I bought some stuff on the road.

I guess what you could say is that you bought the gear from A LDS, just not YOUR LDS . . .

Darryl
 
Originally posted by dvleemin
I guess what you could say is that you bought the gear from A LDS, just not YOUR LDS . . .
In that case, all my gear came from a LDS....

well, maybe not. They were all LDSes, but lots of stuff was shipped.

:confused:
 

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