Disclaimer: The following story is an expression of my opinion and is not intended to describe the practices at any particular scuba company. It is simply my opinion based upon my own experience and the experience of others in the scuba diving industry.
Retailers all over the country look forward to the Christmas retail season much like you and I look forward to that once in a lifetime scuba vacation. Simply put, the Christmas retail season is the time of the year when retailers finally get to put some money in their pocket. It's the time where the hard work and long hours of running and managing a retail operation finally pay off. It is so important for some retailers that even a 5% decrease in holiday spending can turn a feast into a famine.
With summer still trying to ease it's way into the calendar, many retailers are already making their Christmas holiday retail plans. Inventory is being evaluated and offers are being solicited from key suppliers for those special consumer items that will cause the customers to line up at the retail door. Price strategies are being developed and retailers are planning the roll-out of discount sales, half price promotions, special prices on the most desired items, and the advertising necessary to make Christmas 2006 the best retail season ever. This is happening in ski stores, sporting goods stores, general retail stores, clothing stores, appliance stores, outdoor cooking speciality stores, cell phone stores, pet stores, and almost every type of retail store you could imagine. Travel agents are bracing for the windfall of travel money spent during the Christmas season for travel all during the 2007 calendar year. Wal Mart is planning daily for just the right retail specials that will bring customers into their store instead of the local K-Mart store. Sears is working hard to design Christmas promotions that will fill their isles with customers, ready and willing to spend money for this special time of the year. In the midst of their peak months of operation, you local snow ski store is planning for the big 40% off sale that will guarantee them their share of the retail dollars spent during the Christmas buying season. Why is this?
According to the U.S. Department of Commerce, 35% of ALL retail spending in the United States will occur in the five weeks from Thanksgiving until Christmas eve! According to the same government agency, MOST retail stores close on the day before Thanksgiving with an accumulated LOSS for the year to date of up to 1% to 3% of sales. Only after the Christmas sale season can that boast and post a profit for the year. No doubt about it.......December is Christmas for all of us, but it is REALLY Christmas for the American retail store. But something is mysteriously missing!
YOUR local scuba store!
You see, devious retail price maintenance policies, excessively restrictive advertising policies, and the failure to recognize the scuba store as a real retail store totally block your local scuba store from participating in this season of plenty. On Thanksgiving day, your local newspaper will be FULL of sale papers and advertising inserts touting the great savings available from this retailer or that retailer. The consumer can purchase snow skiis and bindings for 40% off. The consumer can purchase electronics, including iPods, CD recorders, televisions, XM radio receivers for up to 50% off. EVERY clothing store offers 25%, 30%, some even 70% off on the best clothing items. Everywhere you look, EVERYTHING is on sale! Why do the retailers do this? It's simple. During the month of December, consumers have, on average, $930 each in disposable income and they plan to spend it in only five weeks of the year. So why doesn't the local scuba store participate and get some of this mad money that will be spent during Christmas?
Well, for one, many of them aren't allowed to advertise items for one penny less during the Christmas season than what they are permitted during any other day of the year! If they are dealers for the most restrictive of the scuba companies, they can't offer you a regulator for any different price during Christmas than they can in the middle of June! So, your local scuba store simply puts their head between their knees and hopes to survive until warm weather. After all, if they can just survive, the members will return to the club when the weather turns. They are forced by agreement, by years of indoctrination, and by habit and tradition created by the scuba industry, to forgoe any opportunity to get their fair share of this mad money spent during the Christmas season.
What consumer in his right mind would go into a scuba store at Christmas and purchase a buoyancy compensator for the same price it will be offered later in the year? After all, they also love to snow ski, and they can get their snow ski equipment for 40% off during this mad season. What consumer in his right mind, wanting both a new regulator and an iPod, would opt for the regulator at the everyday price when the iPod is availalbe for 30% off? What consumer would venture into the scuba store, with no sales and no special offers, to get the stuff necessary to begin the new sport of scuba diving? After all, they have also always to try sky diving and the sky diving operation at the local airport is offering specials on training and the initial 5 lifts. It is hard enough to get the new diver to think about a water sport in the middle of December. It is especially hard if the scuba store has nothing special to offer.
You see, there is a Grinch that stole Christmas. But it's not the one that Dr. Seuss wrote so magically about. This is a real Grinch, stealing a real Christmas, from real people!
Anyway, just my opinion. Thanks for reading.
P.S.....Tune in next week for my version of the Fat Cat in the Hard Hat.
Phil Ellis
Retailers all over the country look forward to the Christmas retail season much like you and I look forward to that once in a lifetime scuba vacation. Simply put, the Christmas retail season is the time of the year when retailers finally get to put some money in their pocket. It's the time where the hard work and long hours of running and managing a retail operation finally pay off. It is so important for some retailers that even a 5% decrease in holiday spending can turn a feast into a famine.
With summer still trying to ease it's way into the calendar, many retailers are already making their Christmas holiday retail plans. Inventory is being evaluated and offers are being solicited from key suppliers for those special consumer items that will cause the customers to line up at the retail door. Price strategies are being developed and retailers are planning the roll-out of discount sales, half price promotions, special prices on the most desired items, and the advertising necessary to make Christmas 2006 the best retail season ever. This is happening in ski stores, sporting goods stores, general retail stores, clothing stores, appliance stores, outdoor cooking speciality stores, cell phone stores, pet stores, and almost every type of retail store you could imagine. Travel agents are bracing for the windfall of travel money spent during the Christmas season for travel all during the 2007 calendar year. Wal Mart is planning daily for just the right retail specials that will bring customers into their store instead of the local K-Mart store. Sears is working hard to design Christmas promotions that will fill their isles with customers, ready and willing to spend money for this special time of the year. In the midst of their peak months of operation, you local snow ski store is planning for the big 40% off sale that will guarantee them their share of the retail dollars spent during the Christmas buying season. Why is this?
According to the U.S. Department of Commerce, 35% of ALL retail spending in the United States will occur in the five weeks from Thanksgiving until Christmas eve! According to the same government agency, MOST retail stores close on the day before Thanksgiving with an accumulated LOSS for the year to date of up to 1% to 3% of sales. Only after the Christmas sale season can that boast and post a profit for the year. No doubt about it.......December is Christmas for all of us, but it is REALLY Christmas for the American retail store. But something is mysteriously missing!
YOUR local scuba store!
You see, devious retail price maintenance policies, excessively restrictive advertising policies, and the failure to recognize the scuba store as a real retail store totally block your local scuba store from participating in this season of plenty. On Thanksgiving day, your local newspaper will be FULL of sale papers and advertising inserts touting the great savings available from this retailer or that retailer. The consumer can purchase snow skiis and bindings for 40% off. The consumer can purchase electronics, including iPods, CD recorders, televisions, XM radio receivers for up to 50% off. EVERY clothing store offers 25%, 30%, some even 70% off on the best clothing items. Everywhere you look, EVERYTHING is on sale! Why do the retailers do this? It's simple. During the month of December, consumers have, on average, $930 each in disposable income and they plan to spend it in only five weeks of the year. So why doesn't the local scuba store participate and get some of this mad money that will be spent during Christmas?
Well, for one, many of them aren't allowed to advertise items for one penny less during the Christmas season than what they are permitted during any other day of the year! If they are dealers for the most restrictive of the scuba companies, they can't offer you a regulator for any different price during Christmas than they can in the middle of June! So, your local scuba store simply puts their head between their knees and hopes to survive until warm weather. After all, if they can just survive, the members will return to the club when the weather turns. They are forced by agreement, by years of indoctrination, and by habit and tradition created by the scuba industry, to forgoe any opportunity to get their fair share of this mad money spent during the Christmas season.
What consumer in his right mind would go into a scuba store at Christmas and purchase a buoyancy compensator for the same price it will be offered later in the year? After all, they also love to snow ski, and they can get their snow ski equipment for 40% off during this mad season. What consumer in his right mind, wanting both a new regulator and an iPod, would opt for the regulator at the everyday price when the iPod is availalbe for 30% off? What consumer would venture into the scuba store, with no sales and no special offers, to get the stuff necessary to begin the new sport of scuba diving? After all, they have also always to try sky diving and the sky diving operation at the local airport is offering specials on training and the initial 5 lifts. It is hard enough to get the new diver to think about a water sport in the middle of December. It is especially hard if the scuba store has nothing special to offer.
You see, there is a Grinch that stole Christmas. But it's not the one that Dr. Seuss wrote so magically about. This is a real Grinch, stealing a real Christmas, from real people!
Anyway, just my opinion. Thanks for reading.
P.S.....Tune in next week for my version of the Fat Cat in the Hard Hat.
Phil Ellis
