Less than if you pay $57 from the distributor.
Jeremy, I'm not saying you should sell Mag pumps. I hate the damn things. I'm just saying that a lot of LFS are buying from these distributors when they'd be better off buying elsewhere, or being more creative with their purchasing.
I think Jeremy's point was that anything being sold online for less than the distributor pricing is not generally something local vendors are going to carry because it is futile -- the required markup would put it out of the price range too many customers would consider reasonable.
In terms of buying elsewhere...that seems a bit of a stretch. Again, these stores have virtually no buying power when it comes to going direct to a manufacturer. And where else are they going to buy from? MD? As Jeremy points out, that isn't going to solve the problem because now your cost is still what the online retail is selling them for, thus you aren't going to be competitive.
Loss leaders can work but I imagine it is hard to pull off in the LFS world. Loss leaders work because of advertising -- people have to know you have a great price on something and be compelled enough to go get it (and hopefully buy other things while there). How many LFSs actually advertise -- that is, could afford to advertise a loss leader? I just can't imagine that is going to work out for them financially.
I'd say the group buys conducted on our site are about the only ways I see the loss-leader concept working for LFSs because it makes the cost of advertising more palatable (sponsorship)...but how many group buys do you see run? Not a ton. I think if group buys were making our LFS sponsors much money they'd be running more of them.
As Jeremy pointed out, competing online isn't easy either. In fact, I'd argue it is probably nearly useless in terms of drygoods. Who is going to shop from an arbitrary LFS when they can get the same products cheaper from MD and the like with a much wider selection to choose from? I'm not in the business but the only way I can see LFSs competing online would be with livestock, which would is no walk in the park either given shipping costs, mortality rates, and generally cranky/demanding customers.
Creativity, I think we all agree pretty much agree on. One way or another, businesses (no matter what they do) need to find creative ways to be more competitive. Maybe that includes doing things like bagging their own sand or hording dow-flake before the season ends...and much more no doubt.
FWIW, my understanding is that Inland Reef closed because the owner finally had enough resources to open the store he truly wanted -- one focused on astronomy.
Why are there three reef stores in close proximity in Southern NH? I'm not sure, but I'd venture a guess to say that there won't be three a few years from now. But either way, the point is that no store controls its own fate completely. Competitors move in and the market/environment is changed nearly overnight. There are unique challenges facing every business and while there may very well be some issues affect the industry as a whole, these unique challenges probably make just as big a deal as the more widespread ones.
And for the most part, if you aren't running the store then you aren't going to have a great grasp on the big picture (which isn't to say anyone's opinion doesn't matter, just that it isn't likely as cut and dry as one might expect).
I'm just glad I'm not in that biz.
