The Great local dive shop vs. online debate

[scubasean]

adjuster-jd once bubbled...
I was recently OW certified and decided to purchase a BC at my LDS when I returned my equipment from the weekend's OW diving. I opted for the Oceanic Probe which is the same as my instructor uses. LDS price on this is $499 which represents a 10% discount from suggested retail. Ok. This sounded reasonable and I do get good service in the store.
THEN, I came home and looked at Leisure Pro's price. $349!!! Geesh, I realize there are some shipping charges, and I did expect to pay a little more locally, service has some value, etc, but a $150 difference in price???
What is a reasonable markup on BC's, etc?

Thanks.

Please do not be fooled into comparing apples to oranges and thinking you are comparing apples to apples....

Although LP offers their own warranties, they are not dealers in everything they sell. The Dive-Rite Gear and the Suunto computers are just two categories as an example...

A $150 difference in price, but the result is also different....Try to call Dive-Rite after buying one of their B/C's and you will be asked to resolve the issue with LP. If you bought it at a dealer, Dive-Rite would resolve the issue for you.

That being said, I've had no problems with LP so far; only ones that I thought I had but with further examination was a brain-snaafu on my part.

And you can't try the LP one on until after you've bought it...heh

 

[ZoCrowes255]

adjuster-jd once bubbled...
I was recently OW certified and decided to purchase a BC at my LDS when I returned my equipment from the weekend's OW diving. I opted for the Oceanic Probe which is the same as my instructor uses. LDS price on this is $499 which represents a 10% discount from suggested retail. Ok. This sounded reasonable and I do get good service in the store.
THEN, I came home and looked at Leisure Pro's price. $349!!! Geesh, I realize there are some shipping charges, and I did expect to pay a little more locally, service has some value, etc, but a $150 difference in price???
What is a reasonable markup on BC's, etc?

Thanks.

I sent you an answer in a PM.

 

[Diversauras]

adjuster-jd once bubbled...

What is a reasonable markup on BC's, etc?

A dive shop that buys 5 BCs and an online seller that buys 2000 BC pay different (wholesale) prices. The LDS markup may well be less that of the online markup, you have to know the starting point, and you don't. Like Scubasean said, try and get service...

 

[diverbrian]

I hate to say this, but our LDS has basically given special rights to the people that buy their gear there (like me). At least one diver that I have talked to mentioned being made to feel unwelcome after he bought the bulk of his gear online. They make most of their money off of equipment sales and the mark-up is slim. They nearly take a loss on service. And classes and organized "fun dives" while profitable, require a great deal of time and if this wasn't a family owned store, they would lose money on that as well. The margins are thin and some of the manufacturers are real fussy about letting the dive shops start a price war with their equipment (Scubapro comes to mind.) so they require a minimum price.

I am not saying that what they do is right all the time, but there is a side to the story that needs to be looked at. Also, when you go to get your gear serviced, the LDS has to deal with manufacturers that they normally don't deal with to get parts. This can be a major hassle for them. So, they don't like to service equipment that they don't sell (unless it is gear which you liked and kept and happens to be say... ten years old or better. They understand that.)

 

[metridium]

Northeastwrecks wrote...
A reasonable markup is whatever the market will bear. That's called capitalism.

My thoughts exactly.

The relevant question isn't "Is x% a fair markup?", but rather "Am I willing to pay $X.XX, or can I find it cheaper elsewhere?"

 

[MikeFerrara]

diverbrian once bubbled...
Also, when you go to get your gear serviced, the LDS has to deal with manufacturers that they normally don't deal with to get parts. This can be a major hassle for them. So, they don't like to service equipment that they don't sell (unless it is gear which you liked and kept and happens to be say... ten years old or better. They understand that.)

Actually we can only get parts for brands we sell. Manufacturers will not sell you parts or authorize you to service their equipment unless you are a dealer. Also, the insurance company doesn't like the idea of you servicing equipment without being authorized by the manufacturer either.

 

[diverbrian]

I stand corrected. Mike is correct. I have seen equipment on the repair shelf that I don't see sold, but the key is that they don't sell *anymore*. These are customers that bought their gear years ago from the shop and that liked it and still use it. I would imagine that they still have valid certifications to repair the older gear that they used to sell as the same two senior people are there that opened the shop in the seventies. But I can't be sure. If they never sold, they won't be certified to repair it and won't be able to get parts.

Sorry, Mike. Thanks for the correction.

 

[MikeFerrara]

diverbrian

I think most manufacturers will allow you to continue supporting past customers even if you no longer actively sell their equipment.

 

[redacted]

Northeastwrecks once bubbled...
A reasonable markup is whatever the market will bear. That's called capitalism.

But there are indicators of what the market will bear. One of those is the competitors prices. If everyone has a 100% markup then that is what the market will bear. But when a retailer comes in with 25% markup, the playingfield is changed. If you just have to continue with the 100% markup to survive, It may be time to make some final arrangements.

 

[Otter]

I have certainly seen other LDS turn a cold shoulder to people who buy online. I think thats short-sighted, but human nature. What would really ticks me off is when I spend time talking with prospects, showing them the strengths and weaknesses of various products, allow them to go in the pool with the gear to try it out and THEN they go buy online.

I even had one come back later and try to get me to help address a problem with reg he bought from LP. I politely told him that I would be happy to, at $50/hr minimum 1 hour and that had he purchased it here, I would have been happy to include that service in the price of the reg.

What ppl sometime forget is that the SCUBA market is quite small. Shops generally make +60% of their money on equipment and as probably most of you have experienced, shops don't make a lot of $$ at that and many go by the wayside. Gross margins on equipment are generally high, but with such a small volume it doesn't add up to much.

Otter