Savvy Shoppers Will Determine the Future of the Dive Industry
Wednesday, May 6th, 2009The following is stolen from my dear friend Duane Johnson of Precision Diving.net
Disclaimer: The views expressed by the author are his, and K2 Scuba Online, Tevis Verrett, and the staff all endorse without qualification Duane Johnson as he has the balls to speak the truth rather than following lock step the dogma of a failing scuba industry, manufacturers and certifiying organizations all. . .
Early this week, I was talking with a friend who happened to mention that a dive store wasn’t doing very well and was trying to sell off a part of their business. We started discussing our current national economic situation and the impact on the scuba diving industry. How can dive centers survive in this very tough economy? How can scuba equipment manufacturers help the dive stores?
One thing I think I would eliminate would be MAP or MSRP. For those of you who do not know what MAP or MSRP is. MAP stands for Manufacturer Advertised Price. Basically, the manufacturer tells the dive store the minimum price that their products must be advertised at. MSRP stands for Manufacturer Suggested Retail Price. MSRP is basically what the manufacturer tells the dive centers what they can sell their products at. Why is this hurting the dive industry? Because when consumers research what products they want to buy, they see it listed on eBay, Leisure Pro or what ever. Then they go into their local dive store and see the same product listed for a higher price. Guess where they are going to buy it? By lifting MAP, MSRP, or online selling restrictions, dive stores can start to compete equally in a free market environment. There are many ways scuba manufacturers can protect their brand/reputation without forcing dive stores to sell at higher prices. By trying to scare consumers with terms like black market products, or no free regulator parts.
Dive stores can take advantage of traditional advertising. Print advertising is dirt cheap right now. Think about alternative customer bases and advertise towards that market niche. Perfect example. I talked to a local dive store owner about advertising in a popular gay and lesbian magazine. He had a look of horror on his face. He didn’t feel that that was the clientele he wanted to target. I doubt he was homophobic, but was nervous what others may think. I thought this was ridiculous. After all, the money used by the gay community is the same color used by us heteros. But you can see how getting your name out to other population niches can help you survive this tough economy. By utilizing the cheap advertising rates for traditional media can help you bring in new customers.
Are these just my opinions? Yes. However, I do have a MBA, have consulted for small businesses, and teach business classes at the college level. So I do have a little bit of credibility.
These were just a couple ways that dive stores can use to help survive till the economy starts to turn around. I welcome your suggestions and comments.
Dive Safe,
Duane Johnson
Precision Diving
My .o2 from the dive operations perspective. MAP is both good and bad, Duane has explicated the bad. In defence, K2 is an authorized dealer of all the product we carry. Leisure Pro and Scuba dot com are not necessarily our competition as Walmart is not competition for Neiman Marcus or Nordstroms.
As a relatively new player, MAP allows a more level playing field for the dive shop as well as K2 as an internet presence. If we were to go to battle with the massive war chest of the market makers mentioned above, they could keep dropping prices until they put the competition out of business.
At K2 we sell at the same price position of LP and S.com and add a 365 day return guarantee, a perfect fit guarantee, exemplary customer service to differenentiate ourselves from the discount houses. MAP gives us a more level playing field. . .
. . . so new subject. . . the stupidity of Aqua Lung and ScubaPro to NOT sell their product online, when are they going to step into the new millenium?
Your thoughts? Im putting my flame pants on. . .thanks again to Duane, my friend, compadre, and mentor in certain ways. . .
Tevis





