Very interesting.........!!
I've been directly involved in the scuba industry in the Toronto area for over 30 years. When I started there were about 20 stores in the GTA. Today there are perhaps 10 or 12 despite a prodigious increase in the population. Many of the stores from the past closed for good. Some re-opened under a new name but the overall number of stores serving a much larger population base has not changed much.
Just for fun, how many of you have been diving long enough to remember these names: Underwater World in Scarborough (my first retail involvement); Penguin Diving services in Scarborough (the first store I started); Canada Scuba School in Scarborough; Argosy Sports in Scarboough; Supreme Divers in TO and in Scarborough; Collegiate Sports Scuba in Scarborough; W.C. Diving Adventures in Scarborough; Aquapro in Scarborough and there are 2 others that used to be in Scarborough that I cannot recall the names of. That's at least 8 stores in the Scarborough area alone. Today there are none!
I don't know the 'big picture' reason for the illogical decrease in stores as the population grows but I do know the many personal reasons why a store owner gets out. Often it's simply poor business management. Sometimes it's deliberate competition. Often it's lack of customer support but that can usually be traced to poor business management or poor service. Occasionally it's personal problems.
Many stores are opened by very enthusiastic divers who want to get cheap gear or go on dive trips and think the best way is to be a store owner. They are obviously not serious about running a good, long term business and likely don't have any business savvy and should close.
Many owners blame the customer for not supporting them. Buying at Costco is a good example. A dozen store owners called me to see what I could do about the sale of scuba gear at Costco (the answer is nothing!). Generally I believe that a customer will support a business where he gets the best service and treatment. The LDS that has had a contract with Costco (there's only one store involved) has spent a lot of time and money to sell a bit of scuba gear at a very low profit (not a good way to stay in business) and and done nothing to improve their image as a professional scuba store either. That arrangement has not cost Scuba 2000 any lost business. In fact, we picked up a few customers like the one who purchased a reg system in 4 boxes at Costco and came to us to get them assembled because the kid at the Costco booth didn't now anything.
We are not the store of choice in Ontario(see the 'Dive Store Poll' in this forum) because we are the cheapest. Our prices are competitive but our overall service cannot be matched by any store. Hours of operation, location, parking, in-store pool, active web site
www.scuba2000.com , weekly newletter, knowledgeable staff, experienced instructors, preferred equipment lines, available stock, quick guaranteed service, quality and quantity of scuba courses at all levels, dive trip organization, dive travel and a lot more are all part of 'service' and that's what keeps us busy year round. You'd be amazed to know how many divers come to S2K from Mississauga and far beyond. Some travel past 5 or more other dive shops to come to S2K and again, it's not because our prices are the lowest. We just have a lot more to offer and we try to make each customer feel at home, welcome and well-served.
How many times have you ordered something at a dive store, sometimes even paying for it in advance and then waited months for it to come in? I wouldn't support that store either!
How many times have you bought something that didn't worked as you hoped on the first dive and then the dive store balked at replacing it or even repairing it?
I'm a very demanding consumer (almost obnoxious) but I and the staff at S2K treat every customer the way I'd want to be treated. We're the only store that returns course or equipment deposits if you decide to not complete the course or sale. That's what I want and that's want I give!
As far as prices are concerned, as with most specialty retail businesses (bike shops, clothing, ski shops, stereo/TV, etc), the accepted retail price as required to return sufficient to operate the business is double the wholesale price. Realize that if the owner pays $180 for a 80cf Aluminum tank (that's about right!), he should sell it for $350. From the $170 gross profit he has to pay the shipping on the item, his rent, his salaries, utilities, taxes, insurance and a proportionate share of every other expense in the store. If you think he's putting $170 in his pocket, do not open a scuba store! You'll fail for sure. BTW, in this example scuba tanks sell for about $200 in the GTA. The $20 barely covers the shipping. And some divers want a deal on tanks! Why should I take money from my kids college fund to buy you a scuba tank?
Fortunately it's possible to get a proper return on most items and that return also covers the losses on the tanks.
So what's my point?
Contrary to Chet, a properly run scuba-only business can survive and the diver wins because he's being served by scuba professionals not by the kid who also sharpens skates.
Contrary to Ninja, there's no saturation. There are less stores now serving more divers. In a couple of areas like St. Catherines and Ottawa that's not true but generally it is. The good news is that most of those remaining stores are run better that the ones that are gone (seems logical!).
What can the divers do to help?
The dive store business is not easy and the owners who try extra hard to serve your needs deserve your support. If a dive store does not serve you well, don't hang around because the owner's a nice guy or the store is handy. Go find a better store and use it. Either that or don't complain! It always strikes me as silly when a diver comes to me and says he's been using the same store for 2 or 3 years and they never have stock or never get his gear fixed on time or never take time to explain things to him. I don't think that's a store problem - that's a customer problem. Get out and the store will close! Go to a good store and help him stay open. Give him your business and tell your buddies to do the same; be demanding but fair; a good store owner will repay you by always being there when you need him with product, fair prices, service, advice or whatever you need. What more do you want?