Cape Ann Divers :(

[scubadada]

"Cape Ann Divers, Ltd. is permanently closing their brick and mortar store, and discontinuing their SCUBA dive boat charter services due to decreases in sales"

Very sad to hear. I wonder what contributed most, less new and ongoing divers with less training, less store sales, and/or less charter customers? Makes one take pause, particularly before making online gear purchases, I try to support my LDSs whenever possible.

 

[scbaNE2179]

"Cape Ann Divers, Ltd. is permanently closing their brick and mortar store, and discontinuing their SCUBA dive boat charter services due to decreases in sales"

Very sad to hear. I wonder what contributed most, less new and ongoing divers with less training, less store sales, and/or less charter customers? Makes one take pause, particularly before making online gear purchases, I try to support my LDSs whenever possible.

It's all a mystery as CAD not only offers scuba services but they do a brisk business with beach stuff as well. I do know they are a purely recreational scuba shop-no tech, drysuit, or mixed gas services. If they offered these services then maybe things will be different. I do know another dive shop owner told me many of their customers will come into the shop, spend hours talking and trying out gear, then show up with completely different gear in person. Great research for the customer but the shop gets nothing from this. The internet, if you have the knowledge, is absolutely killing these shops.

 

[Scuba-74]

I do know another dive shop owner told me many of their customers will come into the shop, spend hours talking and trying out gear, then show up with completely different gear in person. Great research for the customer but the shop gets nothing from this. The internet, if you have the knowledge, is absolutely killing these shops.

It's exactly the same in all other industries. Everybody else faces pressure from the internet, and either adapts to the changing market or is forced to quit.

I can see how the margins can get thinner and thinner on the sales of new gear; I have also heard from another dive shop owner that rental branch is a huge money pit. But one would think that in Gloucester, of all places, charter fees and to lesser extent air fills would be able to keep the outfit afloat.

I hope that, as OP wrote earlier, they would be able to restructure, get rid of money-losing departments, and focus on charters.

 

[scubadada]

It's exactly the same in all other industries. Everybody else faces pressure from the internet, and either adapts to the changing market or is forced to quit.

I can see how the margins can get thinner and thinner on the sales of new gear; I have also heard from another dive shop owner that rental branch is a huge money pit. But one would think that in Gloucester, of all places, charter fees and to lesser extent air fills would be able to keep the outfit afloat.

I hope that, as OP wrote earlier, they would be able to restructure, get rid of money-losing departments, and focus on charters.

Are you sure that charters are a strong money maker? Overall boat expenses can be quite high. Has ridership stayed high?

 

[tkaelin]

Very sad news. Hard to tell from just the story what the reason is. Our LDS does a brisk internet business so hard to say the internet is the reason in this case. Loosing your LDS is bad all around.

 

[Scuba-74]

Are you sure that charters are a strong money maker? Overall boat expenses can be quite high. Has ridership stayed high?

Of course I can't be sure, but it has to be more profitable than new gear and rentals. If charters don't make money, then I don't know what does.

 

[gcarter]

Sorry to hear this. Spent two weeks in Gloucester a couple of years ago camping and diving with my son. Did a bunch of shore dives, and a handful of charters off of the Cape Ann Diver II and the Daybreaker. Dives 99 & 100 were on the Chester Poling. Found CAD great to deal with, other than nitrox of course lol. I was thinking of going back this summer, so I would hope someone else picks up the business.

 

[king_of_battle]

Anecdotally I went on maybe 8 charters with them this year and almost all of them were completely full. It was a tough season for all he baots in the area with a lot of charters being blown out due to the weather. If the margins were tight I could see that tipping things unfavorably.

 

[EdC]

I did a two day charter with CAD this summer that was arranged by my local LDS. It was my first experience with both the Gloucester area as well as NE boat diving. While the loss of a resource in general is bad enough, the depth of knowledge about each dive site, and personal attention that the crew paid is something that will be hard to replace. I am sorry that I did not find them sooner.

Of course I can't be sure, but it has to be more profitable than new gear and rentals. If charters don't make money, then I don't know what does.

I actually had the opposite opinion about charter cost. While we were on the boat for those two days I was thinking to myself, how could they be making money even with a fairly full boat? I think I paid 200-250 for five dives over two days taking up about 12/14 hours of the crews time. Even with 20 divers that's at best 5000.00 bucks. Seems pretty skinny on the profit side when you get done paying the crew/fuel/maintenance/ insurance on a boat that big. I wouldn't even want to consider what the permits and taxes run in a state like MA. For those not from NE suffice it to say you need a permit here to do anything more involved than changing a light bulb.

Luckily my LDS is very proactive with trips, local dives, training. I have had conversations with them on the changing business environment and instead of digging in they are adapting. I know that I can get gear there at nearly the same price as online or sometimes better, I think sometimes people just don't check.

 

[scbaNE2179]

I think most or all of us are hoping that another investor will sustain the 2 CAD boats and keep them running for next season and beyond. As for getting air fills and equipment for these charters however, that's another can of worms. If you do not live near a LDS it is going to be that much more difficult for you to get things ready for these charters.