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Subject: Re: New Fill Policy
Date: Thu, 10 Sep 1998 21:05:16 -0000
From: Jim Cobb <cobber@ci*.co*>
To: "Hans Petter Roverud" <proverud@on*.no*>,
     "Joel Silverstein"
cc: "Tech Diver" <techdiver@aquanaut.com>
OK boys, it time for a course in marketing 101. Have you ever noticed 
that many bars give away pretzels and such? Why would they give them away 
when any pricing analysis would show that they were loosing money by 
doing this? Are they crazy? Are they insane? No, they make sure the 
giveaways are nice and salty so they can get you to drink your face off 
(some people don't really need the help, but anyway...)

Dive shop A sells nitrox fills for what it costs them plus a nice fat 
profit. Say $10 a fill. Dive shop B sells for a loss, say at $5 a fill. 
Of course the informed masses go to dive shop B. And on the way to the 
fill area they can't but notice racks filled with the latest gear at 
reasonable prices. So on the way out a good portion of them grab this and 
that and the dive shop makes much more money that those trying to 
profitize on the fills.

I suppose you can be an "air fill" shop or one who is trying to get 
divers in to see the great gear selection at great prices (which Trader 
Johns Scuba happens to offer). I find it odd that this should be as 
obvious as the original faked message, but I guess some folks need the 
marketing lesson.

   Jim

On 9/9/98 1:31 PM Hans Petter Roverud wrote:

>A general rule of thumb in Norway is twice the price of an air fill.
>Moneywise that comes out as about $ 12 for a double 80. Since wages and
>general cost of living vary it might be better to say, for the consumer with
>an average income it costs between one and two hours net pay.
>
>Nitrox is not really about the cost of oxygen -- it's about the cost of
>filters, precision gauges, analyzer and most of all, handling, mixing and
>verification. Thus, we don't raise the price with increasing FO2. The only
>exceptions are very rich deco mixes. Since most of us do partial pressure
>blending without a booster, from 50/50 to pure oxygen take the top of our
>storage tanks really fast. Since we're looking for a booster this may
>change, yet it means another multi-K investment. In any event, the price of
>oxygen is a minor cost compared to investments and labor costs. 
>
>Trimix is different. In this case the price of gas (helium) is a
>considerable price factor. Since European helium comes shipped in from
>Algeria it's pretty expensive. Thus, trimix goes by volume of helium in the
>mix.  
>
>regards,
>
>Hans
>Norway
>
>--
>Send mail for the `techdiver' mailing list to `techdiver@aquanaut.com'.
>Send subscribe/unsubscribe requests to `techdiver-request@aquanaut.com'.
>


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