cost of diving

[milldog]

Just had some costs back for some diving gear from the states and if i was a trader i could make a killing with the mark up.

Now I'm always being told we make very little margin etc etc but looking at the catalogue this isn't true i could buy halcyon, scubapoo and uwtec gear and sell it retail and still clear a nice profit.

so the question is do you think diving gear is getting to expensive?

Graham

[Big Kahuna]

Originally Posted by milldog

Just had some costs back for some diving gear from the states and if i was a trader i could make a killing with the mark up.

Now I'm always being told we make very little margin etc etc but looking at the catalogue this isn't true i could buy halcyon, scubapoo and uwtec gear and sell it retail and still clear a nice profit.

so the question is do you think diving gear is getting to expensive?

Graham

Have you added in import tax, transportation, VAT, liability insurance, advertising & marketing, staff costs, shop space rent/rates, utilities, local business rates?

All adds up and eats away at "a nice profit".

[milldog]

Originally Posted by Big Kahuna

Have you added in import tax, transportation, VAT, YES
liability insurance, advertising & marketing, YES
staff costs, shop space rent/rates, utilities, local business rates? Internet sales

All adds up and eats away at "a nice profit".

Still very good

[Sparky750]

Oh sh*t the milldog dive shop

[Mal Bridgeman]

Originally Posted by milldog

Just had some costs back for some diving gear from the states and if i was a trader i could make a killing with the mark up.

Now I'm always being told we make very little margin etc etc but looking at the catalogue this isn't true i could buy halcyon, scubapoo and uwtec gear and sell it retail and still clear a nice profit.

so the question is do you think diving gear is getting to expensive?

Graham

I am sure if it were that easy, everyone would be doing it

Making a profit and making a living are not the same thing ..... Although I am sure there's a fair margin on each individual item but that's true of *all* retail, it's hardly like this stuff sells in the millions like Tesco, where the mark up only needs to be a small percentage.

I certainly would not want to be a dive gear retailer, but I am grateful there are those that do

Mal

[Kev]

I used to own a shop (not a dive shop) and I think it is an extremely tough way to make a living. The three largest costs are purchases of stock, rent and staff so you can make a nice return on each item you sell but you then need to pay your staff and your landlord. I imagine most diving businesses only succeed in making their landlords richer.

[pieater]

Originally Posted by milldog

Just had some costs back for some diving gear from the states and if i was a trader i could make a killing with the mark up.

Now I'm always being told we make very little margin etc etc but looking at the catalogue this isn't true i could buy halcyon, scubapoo and uwtec gear and sell it retail and still clear a nice profit.

so the question is do you think diving gear is getting to expensive?

Graham

What you're seeing is a fairly unique period where the £/$ is excessively in our favour. Put the exchange rate back to it's more normal levels and it'll not look so appealing. You could, however, cash in for the short term.

[Scubee]

It depends how you want to do it.

If you simply purchase, then resell, without premises, then you can bring in a reasonable amount.

I used to sell for a Steve S's Auntie Ann. I bought in at price x which was the list price less 30% as a minimum. Some of the lines were more discounted at more than that.

Most weeks i would sell enough goods to clear about a hundred quid, which was quite a lot in the 80's.

And there are people who can supply some gear and don't run a shop. Another difficulty might be getting suppliers to supply you as an individual. Some suppliers won't supply if it is within a certain distance from another supplier.

[Kev]

I agree you can make a few quid selling stuff on while you are at home and indeed that is how a lot of these things start. To make a good living out of it you need to scale up and then the costs come in because that means staff costs (or a serious commitment of your own time which is the same thing really) and renting space so your house is not taken over by your business.

[milldog]

I can understand that and if it was sucseful yes, but £200 profit on one wing thats a 96% markup! small handheld LED torch cost £30 RRP £98. yes i should imagine that you'd get big very quick,

But i might look at this in more detail after july even if it's just for me and friends

Graham