Purchasing Equipment Online vs. Shop

Question
Hi there. I have an ethical question i guess. I found a little shop that I got
certified through. I really like the people from the shop and want to give them
my business, but they are OUTRAGEOUSLY priced.  I find them to be at least
double what internet pricing is.  I totally understand and appreciate the value
a small shop has over an internet dive shop, but to be so overpriced feels like
an insult to me.  I don't want to alienate all the good guys at the shop, but
money is a real issue.  Is it fair for me to buy some things from a shop and
buy most things, big ticket items, from the internet?  As you know SCUBA is
great, but expensive.  Especially to start out.  And having a large family, i
don't have a lot of money to invest in equipment, but want to dive!  I guess
I'm just looking for an opinion from a shop owner...

Answer
Hi Pete,

Wow...that's a great question!!  As you have surmised, there are two sides to this dilemma with no clearcut answer.  Let me throw some thoughts at you and hopefully lead you to a decision you can live with.

Retail shops are free to set their prices anywhere they wish.  Typically they'll simply "mark-up" their merchandise a certain percentage over what they paid for it.  Typical mark-ups are between 100 and 150 percent depending on the object.  For example, an item which cost the dealer $100 may be priced in the shop at $200 or $250.  Some items (like camera gear)are generally marked up very little.  The trick is to determine which is which.  Markups are necessary, of course, since the shop must get it's money back and also pay for the expenses of running the shop.  Many internet businesses don't have the overhead associated with a "brick and mortar" store so they can afford to sell their merchandise at a much lower markup.  The markup will still be there, of course.  Some dealers may try to tell you that prices are set by the manufacturer.  Not true!!  There may be a minimum ADVERTISED price set by the manufacturer but the dealer is always free to sell the item for whatever he wants.

Many shops will sell their old inventory (outdated or discontinued items)to companies who will then sell them online.  These will be at greatly reduced prices just to get rid of them.  Be careful or you may get a discontinued item which will no longer be serviced by the manufacturer if problems arise later.  Additionally, unless the item is sold by a factory-authorized dealer, there will be NO FACTORY WARRANTY on the item, despite what the internet dealer may tell you.  That's not to say that discontinued items should be avoided...just that you need to know what you're getting.  To find out if an item is discontinued, go to the manufacturer's website and see if it is listed in their catalog.  You can also check to see it's list of authorized dealers and see if your internet site is among them.

If you're operating on a reduced budget (aren't we all?) then I think online purchasing is justified.  Just be sure of what you're getting and keep in mind what I've told you.  The boys down the street won't be pleased so don't expect them to welcome your internet purchase with open arms!!  In fact, I don't think I'd tell them that I got it online.  Be prepared to shell out extra bucks if they have to service it.  If it's not one of their brands, they may not service it at all.

I'm all in favor of supporting your local dive shop but that doesn't mean that you have to accept exorbitant prices.  Try negotiating with them now that you know they have a lot of "wiggle room" built into their prices.  Don't tell them that you have a better price from the internet...they already know that and they'll unleash a barrage of unkind remarks...but use a little diplomacy and you should get some results.  Package prices can also work in your favor.  Offer to buy several items and then you can negotiate a better price on the lot.  Most shop owners will quickly lower prices rather than lose the whole sale.

Regardless of where you do your purchasing, stop by the dive shop occasionally just to see "what's new".  Then, when you really need something, they'll be much more likely to treat you like "family".

Keep in mind that scuba gear is rugged and dependable.  If properly cared for, it will last for many years.  Many of your expenses will be "one time" purchases so once you get past that, the cost of diving will come down considerably.

Don't overlook used gear.  If properly serviced, used gear will perform just as well as new gear.  It may not be quite as shiny but it'll get the job done at a greatly reduced price.  Check with the dive shop to see what the have.  If they don't have what you want then you're justified in going to the internet.  Just keep in mind that you'll eventually need someone to service it.

Pete, I hope this gives you some insight into the workings of your local dive shop as well as the internet.  Hopefully this information will allow you to make good decisions on where to make your purchases.

Happy Diving!!
Mike Giles
Mike's Dive Center
mikescuba.com