What Would Make You By From A Local Dive Shop?

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Hello Everyone,
I recently got involed with a dive shop and now i am the owner. Buisness has been very hard due to internet sales. What make you wanna spend $200 more at a LDS? NOTHING it seems. You people then say lower your prices but we can't because then the manufactor will pull our dealership because we are undercutting other LDS. I m looking at going online but the companys son't want you to and you still can't lower your prices that much. Must of this scuba places online i hear buy there products over seas where they are made and where no rules are in forced. I own many online buisness such as http://www.therobotstore.com so i know the busy. I want to know what would make you buy from a LDS. Any ideas would be great. i just want to know what other divers think.

Thanks Nick
BerryDiveCenter
 
Think of ways you can add value by bundling the gear with services (maintenance, air fills, training, diving clubs, etc). Think in terms of margin rather than revenue...

You probably won't be able to hook everyone, but there are some people who are strictly price shoppers who you may not necessarily want as customers...

Good luck!!!

Alex

EDIT: Myself, I look for advice, service, a conversation, sharing a passion... I WILL pay more to have this convenience...
 
Hi Nick,

I would contact Larry at scubatoys.com for indepth info on LDS/online sales. They seem to have the business model down, and they are authorized dealers for the equipment they sell.

Personally, competitive pricing (not necessarily beating online), as well as good customer service, plus incidental incentives (free air fills with some equipment purchases, etc.) would go a long way. I would also not be belligerent with any customer regarding online equipment. That seems to be the biggest turnoff. Just honesty and a pro/con explanation for customers who may not know why or why not they should use an LDS.
 
I do 99% of my purchases through a number of LDS'es (up to a 2.5hr drive away - each way), with the other 1% going to puchase from an LDS that has an online presence (Scubatoys, Extreme Exposure).

In my experience, it has been LDS'es who refuse to budge on price regardless how much is spent and do not give value-added service that make me want to consider going somewhere else. That being said, I do purchase mostly from the local economy, each LDS is within my state (excepting Scubatoys and EE).

So basically, I'm a bad person to ask, because I already do buy 99% of my stuff from LDS'es, but I do want to point this out - nothing is worse than getting read the riot act from an LDS for buying product elsewhere, whether it be at another LDS, internet, or little green men in a stretch limo. :D Also, I feel charging customers higher "special" pricing for servicing on stuff bought off the internet is just wrong. Fix it, charge the customer the same rate as everyone else (I understand some things aren't covered under warranty and may cost the customer more because of it obviously), and they should keep them as a customer rather than pushing them away, and in all reality, helping seal their own doom.

Gone are the days of LDS'es having a stanglehold. We consumers have instant access to news, reviews, prices and a plethora of suppliers. I don't expect an LDS to be able to beat a place like Leisurepro, but I do expect them to be competitive or at least give me service (*Edit - service as in advice, gear tryout, or just chewin' the fat) instead to make up the difference.

Hope this helps.
 
All of this has been hashed out in other threads (searching is your friend) but I'll give you my summary, in no particular order:

Low prices - Sure, the manufactrers often have a minimum advertised price. You can get around that with things like "Too low for us to advertise" and "package deals". I don't expect an LDS to beat LP but coming close would be good. I'm willing to pay a bit more for service and convenience.

Big selection - Something that's often difficult to keep on hand due to the cost of buying and storage. Making the customer aware of what you can order and what manufacturers you deal with helps.

Good Service - Knows the products and can provide the services I want in a timely fashion. Keeping up to date on product knowledge is a bg time sink. Won't insult product lines he doesn't carry and is willing to admit that a product he carries isn't the best for everyone.

Good Attitude - The customer is always right, even if you think he's wrong. If I argue with a proprieter, it's doubtful I'll be returning. Either I'm right and he's an idiot or he's right and I'm embarassed.

A site on the net. I want to be able to look at a site at 2am then call up the next day to try to get something. Which means your inventory and what you can order needs to be online.
 
What I hate is the customer service skills at my LDS, it is VERY poor. The owner only cares about one thing HIMSELF. He never takes the time to explain or answer any questions and his prices are outrageous! I did my certification through my LDS and it was a horrible expierence. They would tell me one thing one day then something different the next day. Because of these things is why I bought EVERYTHING from scubatoys.com. Great customer service!

Bryan
 
The LDS has to have what I want IN STOCK that I can walk out with (within reason)
I've found most items that need to be special ordered take longer than if I order it myself. I buy many items at the LDS even when I know I'm being raped on the price knowing I can return it easily.
My LDS owner is not rolling in $$$ and I can't get air fills on line.
 
I'd offer discounts to repeat customers. Once someone has dropped a couple grand in your store, they probably deserve a reduced rate, and other LDSes and the manufacturers don't need to hear anything about it. Such a repeat customer discount should be applied fairly, but probably shouldn't be discussed in advance and should be applied at the register when making payment. Never promise something you can't deliver on with a customer or which might not be honored by one of your sales guys when you're not around, you don't want to try to do something good and get accused of a bait and switch.

Going online is also a good way to increase sales. And there isn't a lot stopping you from offering discounts over the phone to close a deal (or just free shipping) and you can always sell stuff over the phone which the manufacturers would get upset over if they saw it on your website.

I think the alternatives you've got are either pricing things too high and playing by all the rules and going out of business. Or, trying to screw your customers with intimidation tactics and going out of business from bad word of mouth. Or getting creative with the manufacturers rules about pricing and being able to compete.
 
I would agree with Derek S. Just like real estate location location location, local shops need to focus on service, service, service. I dont mind paying higher prices. I actually expect to pay higher. No worries as long as the service is good or better yet great! I should and do expect to be treated like an old friend even if i have never shopped there. Customers want to feel welcome, but not pushed. And there is nothing worse than going in a shop and barely being acknowledged. I also dont like places where they act like they know everything and dont listen to you. Product knowledge is essential, but not how great a diver they are. SO... be friendly, helpfull, and knowledgeable. I have owned several retail stores and it takes time to build up your clientele. If customers were not well taken care of by the previous owner, you have some work to do. Have a grand re opening, get local media involved to capitalize on free advertise, get those dang reps involved and make sure they help with refreshment or better yet drastic reductions on some gear. Dont use this as a money maker, but as a get to know you. This should come out of marketing budget. Make some reps do demos or clinics. Good luck mike ps do not take no from reps that is part of their job if they are reluctant talk to the regional rep or the manufactures vp of marketing
 
No BS about the competition like, "Must of this scuba places online i hear buy there products over seas where they are made and where no rules are in forced." It makes me doubt everything that is said that I don't recognize as truth. But I also understand mistakes which that statment probably was.

Competative prices even if it includes compensating for higher prices with free or discounted service. Show the numbers and don't inflate service prices. Use the service prices you post on the wall.

Sell me what I want to buy including parts for regulators. Tell me you won't and I will respect your truthfullness and probably do business elsewhere. Tell me you can't and I won't believe it unless you can show me the legal agreement forbidding such sales. No proof and I'd probably be pretty bad advertising for you.

I'd rather support a local shop than some other shop but most make it pretty difficult. If you really just can't compete then get out of the way of someone who can.
 

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