Scuba Industry Price Controls
February 10, 2008 Running a Scuba Store 10 CommentsThe 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
