Scuba Industry Price Controls

3:04 pm Running a Scuba Store

The launch of our new website has certainly caught the attention of some of our competitors.  For the past 10 days, we have been swamped by suppliers demanding that we end all whole-order discounts, terminate the FREE 10% Gift Card giveaway, and stop any practice that saves YOU money.  It seems that after nearly five years on the Internet, our competitors are now finally paying attention….enough to take time out of their busy days to complain to almost all of our suppliers.  We feel that this is a little like the pot calling the kettle black.

Almost all of the large scuba companies have policies that establish the lowest price allowable in any print or Internet advertising.  These prices are known as the Minimum Advertised Prices and the general set of policies have become known as the MAP policies.  At DiveSports.com, we ALWAYS comply with these minimum advertised prices.  Unless there is a simple mistake, you will not find any item on our site advertised for a price less than that allowed by the manufacturer.  Being free traders, we don’t like these policies, but we do abide  by them because they are a part of our contract with the suppliers.

This past week, several suppliers have complained that our FIRST30 discount code effectively lowers the price of their items, resulting in a violation of the MAP policy.  Several suppliers have complained that our offer to give a FREE 10$ Gift Card with an order of $100 or more further reduces the price of their product, resulting in a violation of the MAP price policy.

We want to sell lots of scuba gear, and we want to make a profit doing so.  After all, this is our job.  This is what we do for a living.  We also want to offer you the lowest possible price.  Our promotional efforts for the new website, including things like the FIRST30 discount code and the FREE $10 Gift Cards are simply ways we think we can acheive our business objectives, while also saving you money.  Our competitors don’t agree.  In fact, it goes even a little further.  Our competitors don’t want us here!  They want us to get frustrated with all of the complaints; they want us to be distracted from the task of improving our web presence and improving our sales;  they really want us gone, leaving them free to enjoy the benefits of ALL of the scuba Internet sales.

The competitors who are all of sudden lodging complaints about us to the manufacturers don’t really have a lot of room to talk.  One competitor actually has a Make Us an Offer page on every single product….even those with Minimum Advertised Prices.  Another competitor has a routine 10% discount for any members of their “house” chat board.  Yet another uses every prohibited discount code word on every single page on their website, designed purely to let consumers know that a better deal can be had with a simple phone call.  One competitor ROUTINELY starts a “price war” on several products every month; and they are given days and days to correct the “mistake” without penality.  The violations of the MAP policies are widespread.  The policies of the manufacturers are simply too fluid and almost impossible to police.  Any attempt to go further results in real retail price control, a position I don’t really think they want to take.

We are doing everything we can to fight the practice of our suppliers attempting to put us at a competitive disadvantage to those very large scuba Internet stores.  Dive Sports is PERFECTLY WILLING to abide by WHATEVER policy the manufacturers set…as long as the playing field is level.  We can’t disarm and play by their rules, while competitors are free to violate them anytime they please, with very little penalty.  We realize that we are small potatoes in this business when compared to some of the very largest Internet stores.  Their clout with the suppliers is large.  But fair is fair.  If they want Dive Sports to follow the rules, then EVERYONE should….no matter who they are.

Anyway, just my opinion.

Phil Ellis

DiveSports.com…Trying Hard to Do the Right Thing!

10 Responses
  1. Kyle :

    Date: February 11, 2008 @ 9:06 am

    Great information! Its often hard to decide on a specific shop because so many offer great websites, exceptional products and service, and competitive pricing! You guys are right up there with the top businesses that offer customers what they want and need! Keep it up!

  2. Phil Ellis :

    Date: February 11, 2008 @ 11:05 am

    Kyle, thanks for your comments on our threads. I hope you continue to visit our site, and I hope you get to use that $10 gift card soon!

    http://www.divesports.com

    Phil Ellis

  3. T. Johnson :

    Date: February 11, 2008 @ 4:56 pm

    Phil,

    This is a great blog that more people need to be aware of.

  4. Harry :

    Date: February 13, 2008 @ 8:45 am

    Phil,

    I think it’s funny that your competitors are so worried about DiveSports. It seems to me they should be more concerned with building up their own business than tearing someone else’s down. Also your suppliers should just be concerend that their product is being purchased. After all, the more you sell, the more they make…

    But what do I know…

  5. Journey Diver :

    Date: February 13, 2008 @ 10:27 am

    Great article Phill the whole world needs to understand the way things work and things like this need to be exposed - keep doing what you’re doing, because i’m going to keep buying.

    Thanks for all the great deals. it helps people like me to be able to afford to dive with some of the better gear i other-wise wouldn’t be able to afford.
    Thanks,

  6. nitrowill :

    Date: February 20, 2008 @ 7:45 pm

    Just play fair, provide great selection and great service, and you will succeed and be respected. I know some shops who use grey markets and such and refuse to use them - no matter what there price is - I and many others support the ones who do things the right way.

  7. dl348 :

    Date: February 23, 2008 @ 11:47 am

    Thanks for your great pricing, selection and excellent customer service. You’re one of my first choices now when I need some gear. Keep up the good work.

  8. fisheater :

    Date: February 28, 2008 @ 11:11 pm

    And then there’s that “other” site, the one with their own “warranty” that routinely advertises lower than MAP prices on “grey market” goods. Surely the manufacturers who exactly where those products are coming from, but don’t want to sacrifice their own sales volume to turn off the spigot.

    Those playing by the rules get screwed.

    Then, of course, there are the LDSs that refuse to deal on price at all. Many will not last to the end of the decade.

  9. Phil Ellis :

    Date: March 1, 2008 @ 8:29 am

    Hi fisheater….thanks for your comments. Things have really changed in the online scuba business. Just a few years ago, online scuba retailing was a grey market business. Now, almost ALL of the online stores are fully authorized dealers. Of course, that one store we all know about is still around. Of course the manufacturers know how they get their merchandise. In fact, most people are now convinced that they are getting directly from the same places that the rest of us use. Oh well. Again, thanks for your comments.

    Phil Ellis
    www.divesports.com

  10. walter :

    Date: March 5, 2008 @ 8:26 pm

    Phil, if it makes you feel any better I quite buying from a couple of those companies because of some of the BS they were pulling. I’m sure everyone is guilty of something but lets not be babies about it.

    So far I haven’t had any problems with great service from your shop. The others, well I can’t say the same thing. Three months for a 02 analyzer that I was charged for the day I ordered was way too long. Even when they told me that it would be shipped, TWICE. Heck you told me it would be a couple weeks, due to the holidays, for a couple of tanks that ordered. They were on my porch within a week.

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