Deep South Divers
Contributor
In my business classes in college, they called what is going on in the scuba industry today a "paradigm shift."
...And it's a natural market progression in a capitalist society. Someone, somewhere figures out a more efficient way of getting product to the consumer (in this case, the internet), and he enjoys a competitive advantage, which quickly dominates the market. In this case, this has also lowered prices, as it has negated the retailer's largest expense (the brick-n-mortar store) and improved sales efficiency.
Interestingly, when the distributors to many online retailers found out how these sales were occurring, they realized that it was now possible for consumers to purchase scuba gear without a C-card... And thus they developed a policy for "no internet, phone or mail order sales." That sounded good, but...
The retailers simply found another supplier for the goods. They either went overseas to other distributors, purchased directly from the manufacturer, or found the same product, still in it's original packaging, being sold second-hand, even though it was still new.
Interestingly, many places like Leisurepro DO have a brick-n-mortar store. They are an LDS in New York City... Which REALLY confuses things... They ARE an LDS, just one that's embracing the internet as a means of sale.
...Which is a benefit to everyone in the supply chain, from the manufactuer to the manufacturer's suppliers to the consumer, and everyone between. Simply put, this has been a study in the efficiency of a sale and how to improve on it and benefit everyone.
...Well, everyone except those who do not follow the paradigm shift. Those that reject internet sales or attempt to stand in front of the paradigm shift bulldozer will find themselves run over.
What's really entertaining, though, are peoples' reactions. I constantly hear things like, "Support your LDS." I DO support my LDS - they're in New York. My "local" is just different from yours.
I also hear things like, "No warranty." This practice is illegal and incorrect, and at some point someone's going to get sued for claiming that. Now there's this thread here on ScubaBoard, which is probably the world's largest scuba community, regardless of whether it's online or not. Hey, people - if you like your local dive shop and want to do business with them, then cool... Feel free.I travel a good bit, and frequent shops all over the Southeastern US. My typical experience with brick-n-mortar dive shops is this:
1. There's usually a very small amount of gear from one or two manufacturers - so my choices are immediately limited.
2. That gear that they have is usually overpriced by at least 50%.
3. There is usually a 16-25 year-old manning the retail store. Often they are too busy texting or being distracted to even notice that a customer just walked in.
4. Assuming that I am noticed, they typically have very little scuba knowlege. Forget the idea of ME getting advice from THEM. The worst offenders don't know what they're talking about, and don't know that they don't know what they're talking about... That is, they're double ignorant... Which makes it really annoying when I am trying to purchase something that I'm staking my life on.
5. The prevalence in thought throughout the store tends to the "surface logic" side of things... Almost totally, what I see in the shop is something that LOOKS like a really good idea in the store, but is really a horrible idea when you're diving. Head lamps, giant 420 stainless steel knives, air-integrated BC systems like the "elevator lever" BCs or the Mares HUB system proliferate. When the 18 year-old attempts to convince me that the latest split fin is a revolution in design, I've got one foot out the door.
The only argument that makes any sense is that the LDSs DO provide a place for divers to rent gear that they don't have and get air (gas) fills. Unfortunately, since I own three compressors of my own and know how to maintain them and do safe fills, I am alarmed at the practices I see when the 18 year-old goes to fill my scuba tanks. Apparently, even when EVERYTHING is done incrorrectly, it's STILL not easy to blow yourself up, 'cause I know of a lot of dive shops that are WAY overdue for a catastrophe.
Our local community in Beaufort has seen about half a dozen dive shops come and go in a period of about 20 years. Any market analyis will show that clearly, there is no profit to be made owning a local dive shop here. There's a variety of reasons for it, but brick-n-mortar overhead, poor management practices, high retail pricing, seasonal (both calendar and economic seasons) issues, and low diver-per-capita ratios are some of the leading reasons for retail failure.
...So how does Deep South Divers survive? Well... We're not a dive shop. We're a commercial entity. That is, we are paid to dive under boats and docks and do whatever people need, for a price. We have salvaged, untangled, cleaned, fixed, repaired, trenched, burned, welded, and all sorts of things. Simply put, this economic model works - it'd be financially stupid for me to create a local dive shop, although that's the industry standard, and what divers locally have always expected me to do.
Instead, I point people to the internet for gear purchases and fill their tanks for a fee when they come by. I know they get great gas (I use it myself) and that everyone's safe and good to go.
When divers need training, I point them to the guys that work for me - two of them are instructors. You'd be amazed at how great some of these new divers are when they get one-on-one personal attention from an instructor, who is thrilled to be able to teach under those conditions, and charge a slight premium for the individualized schooling.
By summertime we'll start a club, too, for those divers who are looking for the comraderie and air fills. I'll be sure to use an economic model that will enable the club and the compressor to sustain themselves financially... But rest assured, my company's profit margins will come from labor - the work we do - not from overcharging for a product or declaring "no warranty," or attempting to sell people things that I know doggone good and well don't work as advertised.
Believe me, my company is not alone - there are other entities like mine that are filling tanks, maintaining solid profit margins, and whose owners are actually DIVING, and so can offer real advice and point new divers in positive directions.
I suspect that THIS may be the new paradigm shift. I feel that the way that we do business is cutting edge (imagine - we actually WORK for our money and actually DIVE, not just TALK about diving) because our focus is "back to the basics."
...So will the casual diver disappear tomorrow if the dive shop closes down? Absolutely not - people just have to find a business model that works, and they will not only keep their doors open, but thrive.
They've just gotta get their heads out of their tails.
Trying to "guilt" the consumer into purchasing is a really poor business plan. Refusing to warranty a product because they didn't buy it in your store is a really poor business plan. Selling garbage gear that's more marketing and fluff than useful dive gear is a really poor business plan. Walking around and complaining that the "internet is the worst thing this industry's ever seen" is a really poor business plan. To me, when I walk into a shop and see or hear these things, it's synonymous with a dive shop in it's last throes of death. My expectations are that the shop will permenantly close it's doors just as soon as the owner's savings and credit run out... Usually within a matter of a few months....Which is entertaining with regard to the "warranty" argument. What happens when I buy something from them and then later need warranty work? If the argument for "buy at an LDS because it's under warranty" is valid, then who's going to service my gear when the LDS is gone?
The answer, of course, is that I'll have to find another shop that'll do it at a reasonable rate. Just like any other good or service that I purchase, I'll shop around and find a reputable place to have work done. Like before, Google will probably have the answer.
Meanwhile, anyone needing fills is welcome to come by any time. We charge $10 each for tanks, and can fill 2 at a time in less than five minutes... And still give cold fills.
...And anyone needing a personal compressor - I'd be happy to sell one of my AirTexes (safe, reliable, reasonably used and excellent condition) for $1500. If you don't buy it, I'm sure that an enterprising diver local to you will, and maybe they'll supply you with fills...
