Atomic Parts Cost

[Eric Sedletzky]

What I don't think the dive companies get is that they are pricing diving out of the mainstream.

I think dive manufacturers look internally at their sales numbers vs manufacturing costs and net profit etc. and have adjusted their prices to remain solvent. Do they actually have personnel out there looking externally at the market and doing market studies? IDK, but I doubt it. They may look laterally at their competition within the industry, but I don’t think they have a clue about what the general public wants or thinks. Diving has never been mainstream, if it was then gear prices would be half or less of what they are now just based on volume sales.
Prices now are borderline obscene for what you actually get IMO. A machined hunk of brass, a few O-rings, some moulded plastic, a few hoses and bits and some of this stuff is hovering at a grand or more! Ridiculous!
It’s similar to outboard motors, some of those things cost the same a new car! It’s obscene. But outboard motors and boats are in the same niche type of demographic as diving. It’s a small number of generally well monied enthusiasts.

 

[ams511]

I may be wrong but I thought DEMA was supposed to do market studies on the dive industry. It seems to me that the industry is graying rapidly and they need to get younger divers into the hobby. At current prices it is too expensive for the average millennial or gen-Z to get into diving.

You are right that diving was not mainstream but I do think it was more popular in the past. I think we both agree that it was far more affordable in the past. I learned to dive in the early 90s and there was almost a diving shop on every corner in Orlando, as time went many shops closed.

I was out of the hobby for a few years but when I look at the prices for gear I was shocked. Something a simple as a Hog harness is 2-3x more expensive than it used to be. I looked at some of the European shops and although their prices are up, they are still cheaper than in the U.S.

 

[BoltSnap]

I may be wrong but I thought DEMA was supposed to do market studies on the dive industry. It seems to me that the industry is graying rapidly and they need to get younger divers into the hobby. At current prices it is too expensive for the average millennial or gen-Z to get into diving.

You are right that diving was not mainstream but I do think it was more popular in the past. I think we both agree that it was far more affordable in the past. I learned to dive in the early 90s and there was almost a diving shop on every corner in Orlando, as time went many shops closed.

I was out of the hobby for a few years but when I look at the prices for gear I was shocked. Something a simple as a Hog harness is 2-3x more expensive than it used to be. I looked at some of the European shops and although their prices are up, they are still cheaper than in the U.S.

So you are going to do something about the inflation and cost increases in raw materials? When I was growing up, Pepsi bottle was only $0.10, very affordable with today's standards.

 

[berndo]

The funny part was Apeks was basically the same price if you bought from European dive shops.

I find that really strange. Some brands sell their stuff for double than what it is in Europe. I wonder why that is.

Prices now are borderline obscene for what you actually get IMO. A machined hunk of brass, a few O-rings, some moulded plastic, a few hoses and bits and some of this stuff is hovering at a grand or more! Ridiculous!

I agree, it's getting ridiculous. Even stuff like rubber fins have more than doubled in 10 years or so. Used to be 80 bucks, now it's 180.
You also see this when you buy a mountain bike or road bike these days. A 'mid range' bike is like 4-5 grand now. It's nuts. Same with the parts.

 

[ams511]

So you are going to do something about the inflation and cost increases in raw materials? When I was growing up, Pepsi bottle was only $0.10, very affordable with today's standards.

I think it is more like GREEDflation than inflation. Given your soft drink example, in 2020 a six-pack of Coke or Pepsi cost $2.00 on "sale". Which one or the other brand was on "sale" every week. In 2002 the "sale" price for the same product is $3.00 to $4.00. So that is a 50 to 100% increase in cost in 2 years. Sorry that is not inflation but price gouging.

 

[ams511]

I find that really strange. Some brands sell their stuff for double than what it is in Europe. I wonder why that is.

I agree, it's getting ridiculous. Even stuff like rubber fins have more than doubled in 10 years or so. Used to be 80 bucks, now it's 180.

I guess they think Americans are wealthier than Europeans and can afford to pay more. However, I did notice that gear is getting more expensive there are well. An Apeks DS4 first stage used to be around $100 to $120, now it is $200. I miss the good old days of Dive Inn and Leisure Pro.

Your right about the fins, Jets used to be $100 now they are over $200. I noticed some of the other fins are much more expensive now also.

 

[berndo]

I guess they think Americans are wealthier than Europeans and can afford to pay more.

I don't know but I think the (former) middle class makes about the same as in the States. Real estate, gas and heating have gone through the roof though... I can see that people have less money to spend on stuff like diving or don't even start diving.

 

[lexvil]

50 years ago jets were $21 but gas was $0.21 per gallon, jets are cheap

 

[BoltSnap]

I think it is more like GREEDflation than inflation. Given your soft drink example, in 2020 a six-pack of Coke or Pepsi cost $2.00 on "sale". Which one or the other brand was on "sale" every week. In 2002 the "sale" price for the same product is $3.00 to $4.00. So that is a 50 to 100% increase in cost in 2 years. Sorry that is not inflation but price gouging.

Pepsi hasn't changed all of this time and has a MUCH bigger market and income. Same formula for generations. Sorry but you have no clue about the dramatic increases in raw materials, shipping, etc. You are making an emotional statement just to vent.

 

[ams511]

Pepsi hasn't changed all of this time and has a MUCH bigger market and income. Same formula for generations. Sorry but you have no clue about the dramatic increases in raw materials, shipping, etc. You are making an emotional statement just to vent.

Sorry but Greedflation is not a word made up by myself, there are many articles on it. Perhaps you need to educate yourself.

As for soft drinks, the main ingredient is water, which may have gone up a bit. The second ingredient is corn syrup which is up maybe 10%-12%. Not sure about the other ingredients because the label doesn't specify them. However, looking at store brands, their price has not increased as much as the major brands and they would face the similar costs. Some of their price increases may be due to the increase in the prices of the major brand.

Here is an article on Pepsi. There looked to be a better one in the NY Times but it was behind a pay wall.

PepsiCo raises 2023 profit expectations as price hikes offset falling sales volume

PepsiCo saw lower demand for its drinks and snacks in the second quarter but higher prices continued to boost its bottom line.

apnews.com