Jeff:
I would put forth the idea that for every dollar a LFS "loses" due to this Club (like someone buying corals or used equipment from a Club thread instead of at a retail store) they gain at least double that, maybe more, because of this Club.
Newbies come here for the (good) advice or for help solving problems... many end up being successful enough to remain in the hobby, even eventually expanding their involvement (upgrading to bigger / better equipment, adding another tank or more); whereas a large majority who do not get this type of "help" end up quitting the hobby because it is "too difficult, too expensive, everything I buy ends up dying no matter what I do..."
The 'attrition rate' in this hobby is still very high. I would take an educated guess that as many as 50% of new SW hobbyists either "go back to FW" (if that's where they 'came' from) or quit the hobby alltogether within the first year because they get frustrated with a lack of success and almost feel like they are getting "ripped off" by LFS' all too willing to sell them even more equipment and livestock but never really fixing the problem of "everything dying"... And I base that opinion on the years I spent working at 2 different LFS' back in NY... now, maybe it is not exactly the same here in the SL Valley, but I would bet is is a similar pattern. And remember also, I am talking about those newbies who "go it alone", without the benefit of unbiased advice like they would get at a site like the WMAS...
I would also put forth that the Club brings people to the LFS in the first place. When I first came to Utah, I had no idea we had so many options when it came to LFS'... coming to this website I learned about stores I never knew existed. In the beginning I knew of 1 LFS and I made all my purchases there - or online. Now, thanks to info gained from this site, I frequent probably half a dozen LFS regularly, and hardly ever go online for stuff anymore.
Now, in this instance, did the Club cause an LFS to lose revenue? The honest answer is yes, the 1 LFS that I knew about prior to the Club still gets some of my business - just not all of it... however, the other 5 LFS gained business from me that they never would have had at all if it wasn't for the Club. Furthermore, I can honestly say I spend more total dollars on this hobby, period, because of the amount of choices, selection and variety the multiple LFS' I discovered through the Club can offer vs. patronizing only 1 establishment. And - importantly - since I now know the locations of many LFS' here locally, I will almost always search them for a particular item I want or need vs. previously, when if the 1 store I patronized didn't have something I ended up just going online and ordering from an out-of-state retailer... so nobody "local" benefitted at all.
And, having visited this board for awhile now, I know that I'm not the only one in the same situation. We get a fairly steady stream of new 'guests' (as well as new members) asking about LFS locations in their local area, where to buy a particular item, "who carries such-and-such brand", etc. (Just look for all the
Mike Savage "Welcome!" posts and you'll see what I mean
)
And, if they are buying locally - at any LFS - then they are not buying online. It's the online businesses that are really hurting the LFS, not our Club (or any other Club, for that matter)...
I agree that the WMAS should not "try" an associate itself with any one LFS - or any LFS, period. The integrity of the Club is much more important than any financial or public relations assistance LFS sponsorship would bring. I would never want to see our Club 'catering' to an LFS or 'sweeping under the rug' any bad traits of a particular LFS just because we want it as a sponsor. Or even "steering" our members or guests towards any particular LFS because it is a "WMAS Sponsor" and some other LFS is not. So far I have not come across any Reef Supply LFS here in the area that I would honestly call "bad"...but, if I did, I would expect to be allowed to present my opinion to that end here on this site - and not be censored or told "we don't badmouth our sponsors here" or some other unethical baloney.
All that being said, I believe that our local LFS can have a partnership with our Club that is beneficial to both entities, but does not compromise the integrity of either entity. If we work together to grow this hobby, the 'fruits' of that partnership and cooperation will be available to all...