I have been diving for 20 years now and been in the corporate world for about eight of those years. I have come to a point in my life that I would like a better and more fulfilling career. I am considering purchasing a dive shop in a small community just north of Palm Beach County in Florida. I am curios and open to any comments or recommendations to this. I am concerned about the online purchasing and how it may affect the shop owners, I am also concerned with the economy and where it might be headed and its impact on the industry. I look forward to hearing from you guys. Thanks in advance.
Opening a Dive Shop
- Thread starter mikec568
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cgvmer
Contributor
You need to look at the business and figure out where your money is being made.
Are you making money from services? (classes, repairs etc) or from equip sales?
This is a classic business plan decision.
If it's from services then then online buying is not as much an issue but you could easily build a reputation as a shop that welcomes online bought equip for repair/service.
If it's from equip sales...you need to understand your segments: from initial equip for newbies? from tech gear? etc...
It's not a simple question, and you may need to rip through alot of data from the current owner.
Are you making money from services? (classes, repairs etc) or from equip sales?
This is a classic business plan decision.
If it's from services then then online buying is not as much an issue but you could easily build a reputation as a shop that welcomes online bought equip for repair/service.
If it's from equip sales...you need to understand your segments: from initial equip for newbies? from tech gear? etc...
It's not a simple question, and you may need to rip through alot of data from the current owner.
Hi Mike. Welcome to ScubaBoard.
There is no doubt about it, being in the dive business is fun. Purchasing an existing shop can be great if the shop has a regular and consistent client base, if it has top retail lines, and if there is considerable "good will" to go with the transaction. One of the problems with purchasing a dive shop is that they often have more "bad will" than "good will". If this is the situation, you are better off starting from scratch.
Running a dive business is no different than any other business. You must be cost, quality, and delivery competitive. If you aren't, you will never make it. That being said, you will have to develop some strategy to compete with the wide selection and discount prices available from the online stores. Without that, you are in a real uphill battle.
If you ever have any questions, please feel free to give me a call. Thanks.
Phil Ellis
diverdowndh
Contributor
Just don't forget what it is like on the customer side... jump on scubaboard every once in a while. You can get all kinds of perspectives and don't be afraid to ask. I am working towards my DM and I started a thread about DM expectations - both from my point of view and also from the LDS. Wow, that thread has so many posts now it is incredible and I got anything from dive slaves working for an LDS to a really laid back style on the LDS. I learned what to ask up front, and had a really constructive conversation with the owner of my LDS about taking on the DM course. We both understand each other. This board rocks in terms of information, opinions, and experience.
I say go for it and even if it has a rep of "bad will", you can turn it around although I agree that would be an uphill battle. There is an LDS here in Denver who I used for several years and it was a pleasure to walk into. About a year or two ago some new owners took it over and not only have most of the good Instructors left, I have personally had 2 or 3 really weird things happen and the bottom line is I walked out of the shop feeling slimed for money. I have since found another shop and love it! Probably won't ever step into that other shop again unless I heard new ownership had replaced these current gold diggers. That should give you an idea of the "bad will" thing.
Hope this helps!
I say go for it and even if it has a rep of "bad will", you can turn it around although I agree that would be an uphill battle. There is an LDS here in Denver who I used for several years and it was a pleasure to walk into. About a year or two ago some new owners took it over and not only have most of the good Instructors left, I have personally had 2 or 3 really weird things happen and the bottom line is I walked out of the shop feeling slimed for money. I have since found another shop and love it! Probably won't ever step into that other shop again unless I heard new ownership had replaced these current gold diggers. That should give you an idea of the "bad will" thing.
Hope this helps!
BeenThereDoveThat
Registered
So, you have decided to become a shopkeeper?
It is drier than diving.
Don't confuse the two.
You're in the right locale to give it a shot.
What can you offer besides high mark-up goodies? Ongoing and progressive training, hardware to go diving on your charters. Service the iron and rubber- for common folk and public safety divers. Service. The only way you can make it, Captain. The complete package. ala: Come on in, I'll take you out for a great dive!
Gotta do what the internet can not.
It is drier than diving.
Don't confuse the two.
You're in the right locale to give it a shot.
What can you offer besides high mark-up goodies? Ongoing and progressive training, hardware to go diving on your charters. Service the iron and rubber- for common folk and public safety divers. Service. The only way you can make it, Captain. The complete package. ala: Come on in, I'll take you out for a great dive!
Gotta do what the internet can not.
DaytonaDave
Contributor
Seems to me that the best shops are the ones who are active with the divers in the community... heck, the best shops are PART of the local dive community. Plan activities that remind people that you are there to dive... and run the shop to service that need... and theirs.
My new LDS (I moved from Florida in January) is an active training school, and their excitement is contagious. I feel more like I've gained family than a dive shop. It just depends on how you want to be seen by the local dive community.
My new LDS (I moved from Florida in January) is an active training school, and their excitement is contagious. I feel more like I've gained family than a dive shop. It just depends on how you want to be seen by the local dive community.
paradicio
Contributor
I have to agree with Daytona. My LDS is run by a family of divers that dive...a lot! The last 3 times I've been out diving I've run into them. They remember who I am, greet me like an old friend, and we talk and laugh and generally have a great time just being divers. We dive, we have beers after diving, and I learn a lot from them...even if I'm not a student. They have no problem sharing knowledge. They invite me to the back of the shop, where they work on the gear, they show me the tools they use to repair and service equipment. They take the time to explain to me (honestly) what possible benefits and downfalls the equipment I'm thinking about purchasing may have. They make recommendations based on their ample experience. There's no way I could get that over the internet, and that's what makes me go back. I have absolutely no problem spending money at their shop, even if it costs more. The other returns I get are well worth the investment.
When I first got certified, I swore absolutely no allegiance to any dive shop, and made several purchases over the internet. Because they treat me like they do (like a friend and a dive buddy, not just a customer), I will most certainly be spending my money at their shop.
Anyways, this has been my experience. If you do decide to open up a dive shop, I hope it helps you earn and keep some customers.
Good luck, and happy diving!
When I first got certified, I swore absolutely no allegiance to any dive shop, and made several purchases over the internet. Because they treat me like they do (like a friend and a dive buddy, not just a customer), I will most certainly be spending my money at their shop.
Anyways, this has been my experience. If you do decide to open up a dive shop, I hope it helps you earn and keep some customers.
Good luck, and happy diving!
Mayor
Contributor
When I first starting diving I started to buy some gear on line not much but a few items. Then my wife and I wanted to get all our gear at one time. It was cheeper then the price I would pay on line and the service was great. I now only buy itmes from the shop as long as they carry it. If they don't I give the owers a chance to see if they can get it for me and most of the time they can.
As said before the shop I buy from runs classes, day trips, week day dives, etc. They make it fun and once you get involved your hooked. They understand the more you dive the more you talk about diving the more people you get involved in diving, and so on. I dive with the owners of the shop and we have a good time.
It almost like a county club. Once you get involved your a member. So sometimes things might be $5.00 more but in the big picture it not a big deal. Good luck!!!
As said before the shop I buy from runs classes, day trips, week day dives, etc. They make it fun and once you get involved your hooked. They understand the more you dive the more you talk about diving the more people you get involved in diving, and so on. I dive with the owners of the shop and we have a good time.
It almost like a county club. Once you get involved your a member. So sometimes things might be $5.00 more but in the big picture it not a big deal. Good luck!!!
mike_s
Contributor
If you are wanting to open (or buy) a dive shop and aren't concerned with online purchasing, then you are doomed before you start.
If you don't have a way to either compete with online gear sales, or don't have an online gear sales model yourself, you aer doombed before you start.
This might sound blunt. But it's reality.
As for where the economy is headed, there is another post here or on on Deco Stop that says that Leisure Trends (I think) predicts that the sales in the Scuba Industry for this year or next year will be flat. Meaning it won't grow any. However, theyare saying that some online stores experienced a 30% or more growth.
So if the market is flat, and online stores are experiencing growth, it doesn't take a rocket scientist to show that if your business model doesn't compete, then it will become obselete as quick as your store is. (If you don't believe this, that load of bricks that will hit you is going to really hurt...)
Well, this has been a learning experience, some more positive than others. I am still very interested in pursuing my goal, but am concerned that the grass is greener affect is overwhelming reality. It is a tough decision, one that has many avenues. If I were to tell everyone that the purchase price for this shop is only based on asset value, would it make it sound more appealing? I guess it does not matter, even if it was free I would still have to make monthly payments to cover expenses. Is it possible to raise a family on a dive shop owner’s salary? Is it worth the risk? Tough questions. One thought of mine was to keep my existing job in outside sales and also run the shop with a store manager. I could move my current office, which is at my house into the dive shop, and conduct all my current business activities from the shop and still be able to oversee the operations and how things are ran. I just do not accurately know how much time the operations sides of things take to run a dive shop. Well anymore suggestions are greatly appreciated and I certainly appreciate the ones that have already posted. If/when I buy the shop I will make sure you all get something special.
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