RETAILING In with the New - Considerations for Entering New Dealer Agreements – by Jeff Cinciripino, JeffCinciripino.com, Former Owner of Scuba Shack, Rocky Hill, CT.
Choice in the scuba industry is cer- tainly something that we have. We have many training agencies to choose from along with an incredi- ble number of fantastic diving loca- tions to visit. We also have a bevy of courses to enhance our skill and
ucts that we not only recommend but quite often dive our- selves. New products from a new provider should fit into your product mix. A question to ask yourself is how will this new product compete with products that are similar to the equipment I already carry? For example, if you have a specific buoyancy compensator or dive computer in the store, how will this new BC or dive computer impact your ability to sell your existing inventory? And equally important is the value proposition for this new piece of scuba gear. Price is an im- portant consideration and sometimes you may need to find alternative solutions for your customers who need more cost- effective options. At the same time, you must be committed to the new product, and able to effectively integrate it into your overall sales strategy. Next, you will want to look at how this new provider will give you a competitive advantage. Competitive advantage can be viewed from two perspectives. First, it is obvious that if you are the only one who carries a specific brand in your area then this most certainly provides you with a competitive ad- vantage when marketing and selling. You may be the only one
comfort while diving. And then there is the wealth and variety of equipment from a number of manufacturers and distrib- utors. Dive shops must make choices for the specific brands across the various categories of dive gear and accessories. Some brands have very high name recognition and are con- sidered premier lines. Other lines may not have the same brand recognition but they can fit some specific needs of your divers. As with many industries, innovation is constant and new players emerge on the scene with products that may be viable for the shop. Most brick and mortar dive shops have long- standing dealer agreements in place and have invested signif- icantly in these relationships. However, with constant
innovation, choice and uniqueness there may be a time to enter into a new dealer agreement.
in your metropolitan area or in some cases an entire state who has a brick and mortar store selling a specific product. We must however flip this idea around when not having a spe- cific brand or product puts you at a competitive disadvantage. If every competitor in your area is selling the hottest dive computer and you do not have an agreement in place to carry this line, then customers will
Manufacturers and distributors have a vested interest in signing up new clients and in many cases, they do make their agreements fairly straight forward. Jumping into a new agreement can be quick and appealing, however, you need to take some time and evaluate this business opportunity. Some things to consider when evalu- ating a new dealer agreement are: Fit into your existing product lines ▪ Competitive advantage ▪ Financial elements ▪ Operational processes ▪ Let’s go a little deeper into each of these areas. As mentioned, dive shops have made significant invest- ments with equipment manufacturers and distributors to stock and sell specific gear. We have carefully selected prod-
DEMA Show Offers Many New Brands to Retailers
gravitate to the other stores. The sticky element here is that you must truly believe in the product, determine its long-term popularity, and then ensure that before entering into a dealer agreement, you complete your assessment to ensure you can profitably open up a line. Most manufacturers and distributors require that you place an opening order to become an authorized dealer. They may also have annual spending requirements to retain the product line. These opening orders can vary significantly from under $1000 to perhaps $5000. Therefore, you will need to assess the impact of this expense on your budget, if it has not al- ready been factored in. Another financial consideration is the
PAGE TWENTY-ONE | SCUBA DIVING INDUSTRY
Made with FlippingBook - Online Brochure Maker