Just spent the afternoon chatting with the guys at my LDS. To make a living, they have service (includes instruction) and retail aspects to bring in money.
They get about one OW class per month, except Dec & Jan when none, and 8 students per class. Two guys are doing their best to make a living at this, but instruction certainly won't pay the bills with those numbers.
Their solution includes retailing other outdoor sporting goods (camping, kayaking, etc...) and they use air fills as a way to drive repeat floor traffic. Some small portion of those customers will buy the $600 BCs and $500 regulators, but I'd guess it's hardly an everyday occurance. Lowering their prices on these items just won't drive more traffic.
On the other hand, a high volume shop in Florida that has 4 or 5 instructors with classes running all the time can afford a different approach. Dedicated dive shops are in competition, and air fills are still driving customer traffic in experienced divers. Markups on BCs, Regs and Computers can be lower since they can sell in higher volume.
This is already starting to sound a little bit like the WalMart and Kroger model. In short, customer demand and the marketplace will determine how many dives shops an area can support, and market factors will dictate prices.
So what's a diver to do? :idea: Move somehwere warm with lots of diving! Imagine the money you'll save.
They get about one OW class per month, except Dec & Jan when none, and 8 students per class. Two guys are doing their best to make a living at this, but instruction certainly won't pay the bills with those numbers.
Their solution includes retailing other outdoor sporting goods (camping, kayaking, etc...) and they use air fills as a way to drive repeat floor traffic. Some small portion of those customers will buy the $600 BCs and $500 regulators, but I'd guess it's hardly an everyday occurance. Lowering their prices on these items just won't drive more traffic.
On the other hand, a high volume shop in Florida that has 4 or 5 instructors with classes running all the time can afford a different approach. Dedicated dive shops are in competition, and air fills are still driving customer traffic in experienced divers. Markups on BCs, Regs and Computers can be lower since they can sell in higher volume.

So what's a diver to do? :idea: Move somehwere warm with lots of diving! Imagine the money you'll save.