End of the dive shop as we know it.

[RonFrank]

My LDS which has been in business since the late 50's. They are hitting on all cylinders, and this seems to be working well for them. Diversification seems to be working well for them. They have a full service Travel agency. I don't think that certifications are a loss leader in that OW is over $300, and they certify something like 1000 divers a year. Plus SCORE, they sell PADI material which is NOT included in that price.

Most new students purchase personal gear, and they have to be making a LOT of money on that as I'd say on average personal gear is going to run $350+, and I've seen a LOT of students spend closer to $500 just for mask, fins, booties, and a snorkel and misc items. They do a very good business on service which most divers who do own gear are getting it serviced locally. Airfills, and smaller retail items seem to also do very well. It's not unusual for them to sell the larger stuff as well. I've waited to fill out paper work for a class, and watched as a couple spent 6K on the entire package for an upcoming trip that they also booked through their Travel Agency. They also have started internet sales, however it's very difficult for me to judge how well they are doing in that area.

Granted Denver is a good market. But we have a dozen or more LDS's in this area that are all afloat. IMO there is money to be made, but this is a smart and well managed LDS. That is the key, having the capital to operate the business, and making sure that they are not relying on just one source for their profit.

I've also noticed that they seem to dump any manufacture that won't work with them. They seem to carry lines by manufactures that are more willing to work with them such as Zeagle, Oceanic, but they do carry Atomic. However Atomic is coming out with some very competitive lines even if they discourage online sales. Another example of how working with the dealers benifits all.

I truely don't want to see the end of the mom/pop LDS, in favor of wallmart style LDS's. However many business owners are just not good with rolling with the times, and that is IMO part of what it's all about.

I can safely say that my LDS will likely outlive me, and they have already been in business longer than I've been alive.

 

[serambin]

The problem is cost. If you only service a small slice of the local pie, (or if the local pie is small) you must make more money off each of the fewer people. The problem comes in when the local shops are mostly gone. Where do you find dive buddies? Where do you find air?

If you think about it, the LDS brings you SCUBA--not Cousteau, not the internet. It is fine to be independant, but the fact is, if you learn to dive on a vacation in Coz, you don't want to have to go back to Coz for your next dive.

Stan

 

[dive_lover88]

I really love my LDS,they are good and welcoming. I have learnt alot from them,from the owner and the other instructors.I believe that i have met more divers in the shop then actually diving.LDS are the lifeline of the industry,they supply the training,equipments,travel and other stuffs...the one most important link they provide is inter personal relations. They are like a bridge for divers to get to know each other.

Darren

 

[leadweight]

Fills on line, how do they send that out, UPS 3 day?

Definitely, some of the shops are trying all sorts of things to get people in the door. I get quite a few emails from two shops. The shops are scheduling more events than they used to.

I have noticed the travel offerings have expanded, but the prices are terrible. The typical dive lodge or live aboard gives a free bunk for each 8 or so paid. Airlines give a small rebate per ticket for each group member, but the leader must pay for his/her own ticket net of the rebate. This does not leave much of a margin, so they wind up marking up the package. A week after I returned from Fantasy Island last year I saw the same trip offered for $1600. It had cost me $1100. No wonder I don't go on group trips anymore.

Houston has its own special problems. Local lakes are really bad. I might go out there to check out something new, but that is it. Flower gardens trips must be booked way in advance. Its good diving, but the boats are rough and so is the ride out there. The local joke when someone asks where do you dive around Houston is to answer Cozumel.

By the way, right after I returned from Thailand, I learned my "primary" LDS was going out of business. The two experiences have changed the way I view the industry.

Perhaps, it is a migration of business from most US cities where there are limited local diving opportunities to the foreign resort locations that many divers frequent.

 

[RonFrank]

Where do you find dive buddies? Where do you find air?

Stan

The whole air argument IMO is somewhat bunk. The biggest suppliers of air are the same outfits that supply welding shops, CO2 fills, and medical O2. They are also generally the ones that are doing the hydro's in most cases.

Case in point, the ONLY reason I would Hydro through my LDS is because if I don't they are going to charge me almost as much for the vis as they do for the hydro + vis. It's kinda a scam as the hydro includes a vis, and the LDS just sends the tank out to get the hydro done which costs them $12 or less. I can get the hydro done for $12, but the hydro + vis is $25, and the vis is $20 so avoiding the LDS means that I pay $32 if I have the hydro done independantly vs. their price which is less and includes both.

So if the LDS's all go away locally, there would be other options for getting fills.

As for buddy's, I've met more on SB than through the LDS!

I certainly don't want to see the LDS's in trouble, but IMO if they did, air would be available. Heck, it's all around us!

 

[Downeast Diving]

A survey that was done of U.S. from 1999 to 2005 that showed 687 dive shops opened and 735 closed.

A region of my state that once had 6 shops and four air fill stations during those years, now only has one shop, and one air fill station.

Many posts here have completely hit on the reason(s) why. Reasons because there definitely are more than one. I sum it up to complacency and arrogance on that of the dive shop here. Costs play a large factor in operations. However, to not accommodate and grow with the times and the needs of the diver is surely a death knell to the business.

Dennis--

 

[TheRedHead]

A related question: Do you think divers are a cheap bunch by and large? A lot of it seems to boil down to price. Do you ever just pay more at the LDS because you like them and want to support the business? Or is price everything?

 

[Diver Dennis]

I do pay a little more at my LDSs to support their business Red. I also buy online from ScubaToys as well. My LDS knows I buy some things online because their price is substantially higher and they have no problem with it. I think there are divers that do go on price alone but our LDS is a part of our community and I think it is important to keep them if we can. Paying a little more to keep a good business going is something I'll continue to do.

 

[tracker]

Yeah, you can even order air fills online now....

http://www.diveriteexpress.com/gas/etherfill.shtml

Now I have to sit back and re-evaluate reality as I know it. Is this some kind of sick joke?
BTW, my LDS put together a great package for me. All equipment listed in my profile for @ $1200. Never trys to pressure sell, and always gives me several options. Divers Supply, Indy East.(Indianapolis)

 

[CD_in_Chitown]

I'm holding out for the USB adapter so I can download the fill to my laptop and have it with me for dive 2.