International VentureCraft Corp.
Tel: 604 220 4141
SportSub Dealership
Requirements
Market
A SportSub dealer must have the
demonstrated capability to market marine recreational
products or vessels to at least two of the demographic
groups described in our document entitled SportSub
Markets. Ideally this means that a SportSub
dealership is added on to an existing retail business in
the marine industry. That may be a boat or
watercraft dealer, a yacht broker or even a marina. It
may also be a SCUBA dive store or training facility.
IVC will consider allowing stand-alone
SportSub dealers if the proprietor can demonstrate both
experience in marketing to the stated targets, and the
financial resources to procure the required facilities,
inventory, and staff.
Facilities
SportSub dealerships will be
required to have a business storefront, boatyard, or
showroom facility where SportSubs and accessories can be
displayed. They must also have some form of
workshop where maintenance and small repairs can be done
or optional equipment installed.
Dealerships must have reasonable
access to a location where SportSub demonstrations and
pilot training can be given. Ideally this would be
a dive site with clear water, very little current, a
gradually sloping sandy bottom, and very little boat
traffic. Depth should vary from about ten feet to
at least thirty feet. The dive site must be
reasonably accessible using equipment the dealer has
ready access to. For instance, if the site is only
accessible by boat, the dealer must have access to a boat
capable of carrying or towing a SportSub. If the
site is near a boat launch ramp, the dealer must have a
SportSub trailer and a towing vehicle.
SCUBA tank refills must be readily
available to the dealer. Each SportSub dive
consumes about one tank of air per 30 minute dive to 30' (10m).
It is relatively easy to set up and operate a compressor system
to refill air tanks. Most locations, however, have
nearby dive stores where arrangements can be made to very
reasonably get refills, tank inspections, and regulator
inspections.
Staff
Dealers will be required to offer
SportSub demonstrations and pilot training to customers.
The dealer must therefore have a qualified SportSub
instructor available. A SportSub instructor is a
person who is a SCUBA instructor and has successfully
completed SportSub pilot training. While it is
preferable to have such a person as a permanent staff
member, dealerships will be considered if it can be
demonstrated that adequate services can be obtained on a
contract basis.
Product Stocking Level
Dealers will be required to stock a
minimum of two of each SportSub model they wish to sell,
at least one of which must have the Auto Hover & Depth
Control System. This will allow for one to be sold while
the other remains available for display, demonstrations,
etc. While two units are in stock, at least one additional
SportSub must be on order with IVC. This will allow
for delivery of a new unit soon after each unit is
sold so that stock is quickly replenished. Dealers
are required to purchase a minimum of 2 SportSubs
per year to maintain their dealership.
Additional SportSub inventory will
be required if larger “exclusive dealership
territories” are desired. If a dealership is
capable of marketing to a large territory, and wishes to
do so on an exclusive basis, it must carry adequate
inventory to service the demands of that territory.
It should also be prepared to market and stock all models.
If some models are not stocked, IVC may choose to set up
additional dealers in the territory to carry the
available models.
Financial Capacity
SportSubs and all accessory products
are built to order. Typically a deposit of 50% is
paid to IVC upon placing an order and the remainder is
paid prior to shipping.
Inventory financing is available to
qualified dealers. Certain financial institutions
that specialize in financing inventory of recreational
vehicles and vessels are willing to consider financing an
inventory of SportSubs. To qualify for this
financing, a dealership must be located in North America
and be willing to provide complete corporate financial
information to the financier. The financier will
determine on a case-by-case basis whether a dealer
qualifies, and the maximum dollar value that will be
loaned.
Upon establishing a dealership,
initial orders will be processed according to the terms
described above. For subsequent orders, payment terms of
net 30 days on a portion of the purchase price may be
granted to certain dealers if they qualify for the
support of the Canadian Export Development Corporation (EDC).
To qualify for this a dealer must be located outside of
Canada and be willing to supply corporate financial
information to both IVC and EDC. EDC will determine
what dollar value they will be willing to guarantee based
on the financial strength of the dealer. If the
services of EDC are used, the dealer must pay an
insurance fee amounting to a small percentage of the
value of each order.
Insurance
Insurance is available to operators
of SportSubs to protect them against the liability of
providing rides to the public. It is not a strict
requirement of IVC that dealers carry such an insurance
policy, but it is recommended since demonstrations and
training will occur.
A dealer’s existing insurance
policy may provide adequate protection.
Alternatively, the existing insurance carrier may offer
additional coverage for this type of liability. If
the dealer’s existing insurance carrier does not
offer the protection desired, contact IVC to arrange
insurance through a carrier that provides policies to
SportSub operators.
The information on
these pages is subject to change without notice.
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