Would you support an LDS...

[ghostdiver1957]

Would you support an LDS that is a members only establishment. I'm considering opening one and requiring membership dues to get preferred pricing. Sam's Club, Costco and others do it... but would it work in the dive industry?

If I open a shop and sign up say 300 members at $75 a year annual dues, that would be $22.5K in my pocket right up front. Members would be entitled to discounted airfills, travel and equipment purchases. Non-members would be allowed to shop, get air fills and travel, but they would have to pay non-member pricing. Here is my idea...

Members - Non-Members
Airfills $2.50 ea - $5.00 ea
Nitrox fills $4.50 ea - $9.00 ea
Travel 10% off - none
Repairs 20% off - none
Equipment 20% off - none
Training Classes 20% off - none

So lets say a member fills 20 air tanks a year... they save $50. They go on one trip at $1500... so they go for $1350... They get their regs serviced for $26.25 instead of $35. They buy a new BCD for $320.00 instead of $400 and they take two continuing education courses for $76 instead of $95.

For a $75 membership... they saved $307.75 or a net gain of $232.75.

Would you join a dive shop offering this... or would you walk out saying I'm not paying no stinkin $75 to be able to shop here?"

The benefit to the shop is 1. Capital... 2. guaranteed annual income. 3. Happy customers who buy more and increase sales volume and tell more to come. 4. Higher volume sales means lower costs for items due to volume buying hence increasing profit. Thoughts comments and suggestions welcome...

 

[dlndavid]

Are there pretty ladies behind the counter? If so, yes. Just kidding.
I would consider it.

 

[ghostdiver1957]

Are there pretty ladies behind the counter? If so, yes. Just kidding.
I would consider it.

If I could find a qualified honey... absolutely : )... maybe even a hunk for the lady shoppers... oh... that's what I'm for... just don't tell my wife : )

 

[cummings66]

Nice theory, and I bet it's done in places.

The problem is, your rates are higher than what I pay right now. I have no incentive to join your co-op. It could very well work in many areas and if you're serious about doing it then I'd say go for it. The theory is sound I think.

 

[BabyDuck]

yeah, i'd consider it if the shop was good. consider also monthly specials for members - maybe by email or snailmail - to keep them coming in. or 'spend x amount and get y amount off a future purchase in addition to our member pricing' things.

actually, i have a great idea, but it might annoy the industry if it gets out. seamstresses can make drysuit undies for practically nothing. once you have the fabric (which i have no idea of the cost, but we're dreaming out loud here) the actual sewing is *way* simple. the sewing would be in the $50 or less category. so find a seamstress with a fabric supplier and send people her way for a kickback!

 

[robbcayman]

Maybe. The problem is the internet. If you were at least somewhat competitive with the internet prices that would definitely help. Plus,it would depend on your location i.e Florida v Canada. Obviously, more people dive out of Florida and don't travel as often to dive, so they would be using the shop a lot more. Furthermore, they would get more airfills in Florida vs Canada making the $75 membership more rewarding. But hey what do I know??

 

[devolution365]

Interesting idea, but here's a couple problems I see...

Dive shops are already niche markets, and your structure (IMO) is catering to an even smaller market: the frequent diver. -I am a newbie, the most commonest kind of diver around . I wouldn't pay the $75 membership fee because I forsee about 3 airfills and one or two classes. The savings would not add up to the $75 membership fee. (If I have equipment, my hope is that I won't have to replace any equipment soon, so no cost savings there. Or if I don't own equipment, *cringe* I'd be skeptical of your prices being lower than I could find online even with the discount...)

Since I would probably not become a member, that makes me a "Non-Member" -an outsider, less important than others that walk through your door. -That's not true at my "old LDS", so I'd probably continue to shop there where I DO feel like part of their "regular" customer base.

My 2¢ -hope I don't start another flame war...

 

[Fish_Whisperer]

My LDS has something similar: Basically, since I'm planning on either taking a class with them, or else going on a dive trip with them, they give me 10% off the price of my purchases.

 

[ProfessorAronnax]

Why not

Rap

 

[WaterWayne]

Good that you're thinking creatively, and that you're soliciting opinions in advance; that says a lot for your business sense. As for me, I've seen a few club organizations, open to anyone willing to pay 50 bucks or so in yearly dues, that offer much the same benefits. Equipment: patronize X shop, show your membership card, and get 10% off; travel: either 10-20% discounted, or perking the trip chairperson with the 1:10 free berth; classes: same as equipment. (Although I have to say that my one discounted class, through a club, resulted in not-so-good training, using a contracted instructor rather than the shop's standard staff.)

The good news is that this club model validates your ideas at least somewhat. So as others have pointed out, location would make or break it. If you were in an area without public-access organizations, not many shops with their own, in-house programs, but with interested divers, then it would probably work. Marketing would be your biggest initial and ongoing cost, as I see it; you would have to provide quite a bit of public education.

Good luck!

p.s. Edited to include this link to a post on one of the several "LDS/Internet war" threads, regarding costs of travel. With both the club organizations and dive shops, there will surely be prospects who are willing and able to compare prices for themselves, so honesty and openness are vital.
http://www.scubaboard.com/showthread.php?t=121884&page=21