RMO Dive business in a recession

[boulderjohn]

So how's the dive business in your area?

I was diving down by the Blue Hole a couple of weeks ago, and we dropped in on Saturday to have Stella fill us up. The place was nearly empty. On Saturday evening we just happened to be eating next to her in a restaurant, and we made sure she knew we would be coming by later in the morning on Sunday. If we hadn't told her, I don't think she would have hung around. After she filled us, we just stayed and went in the BH. We were the only ones in the water when we splashed, and it was still well before noon.

She told us it has been that way all winter. The normal business from Colorado instructors was about nil.

Meanwhile, back in Colorado, our instructional business is WAY down.

It is, frankly, a bit worrisome to me, and I am wondering how things are elsewhere in the region.

 

[RonFrank]

I have not talked to my instructor buddies at A1 in a while, but last I did business was slowing. I've also talked to some instructors in NM, and the BH has been very slow.

Gary in FL says things are slow, but he's doing OK so far (Key Largo area).

I'm out of work, and all I hear about is cuts, and layoffs. Times are not good, but we can only hope things will pick up soon. Unfortunately when folks are out of work, they don't spend much or anything on things like Scuba.

 

[Dr. Mark]

I have actually been teaching a bit more since the first of the year. UWP has started offering OW classes every weekend and there has been a pretty steady flow of students. I taught a rescue course last week and my wife and I have both taught Scuba Reviews. We are part time instructors with regular day jobs (which we aren't quitting, quite yet). There are 30 part time instructors at our shop and most are teaching. Obviously, this year is not as good as last year, but Scuba is not dead yet!

 

[amascuba]

In Amarillo, TX, we have been pretty sheltered up to this point in the economic down turn. 2008 was the 5th best year for home sales on record and we have a nice mix of local and large enterprises that we haven't been as affected as much of the country. That said, our two large local banks have said that they expect 2009 to be a flat year for growth. They don't expect much new growth, but also don't really expect a loss of growth that we have had.

The company that I work for is a global enterprise that is a product of mergers and aquasitions over the years. In September 2008 they announced that they were going to consolidate our payment processing platform with another one to elimate redundancy and cut down costs. They expected for our Amarillo office to be shut down in the third quarter of 2009, but the process is taking longer than they expected so the word now is late 2009; early 2010. The companies decision really wasn't based upon economic happenings going on with the company, but rather a strategic decision based on new executive management and investors that came on board in November 2007. It still is not a great time for employees of the company to have to worry where their next paycheck is going to come from, however.

I, knowing a fair amount of history of the company before I was hired in 2005, expected that the day of consolidation and elimination of redundant jobs would come and have been working towards being prepared for that as well of a change of scenery. I'm putting my house on the market, hopefully, early May. I'm keeping my fingers crossed our local housing market stays steady long enough for me to sell my house at a decent price. When that happens, I'm flying the coop and plan on relocating some where else...

As far as our local scuba market goes, it's been steady, at least at the shop that I work at. We typically do one OW course a month with 4 - 8 students, 3 - 4 AOW, and 1 rescue class a year. So far, that's held true to this point. There are two shops in town and I can't speak to how well the other shop is doing, since I haven't stepped foot in it in well over a year. We'll see how well our local economy holds out through out the year.

 

[PhilEllis]

From Leisure Trends December 2008 Executive Summary Report. The figures quoted are based on retail sales, out the door to end users, not manufacturers sales. Of course, what is good (or bad) for the goose is good (bad) for the gander.

December 2008 compared to December 2007

Dive Industry (Aggregate Sales, All Categories) - Down 24% in units, 29% in dollars
Dive Equipment - Down 22% in units, 19% in dollars
Buoyancy Compensators - Down 12% in units, 12% in dollars
Regulators - Down 24% in units, 13% in dollars
Snorkels - Down 34% in units, 35% in dollars
Masks - Down 33% in units, 33% in dollars
Fins - Down 35% in units, 36% in dollars
Computers - Down 19% in units, 29% in dollars
Dive Suits - Down 23% in units, 18% in dollars

Believe it or not, the picture for the entire year of 2008 looks almost as bad. This is really serious, considering that the primary part of the sales season for scuba was before the wide-spread realization of the economic picture, beginning in about August.

Most interesting, the stuff that is most typically purchased by new divers is down the most. This is VERY troubling for the entire industry. I will not post the figures for dive instruction services, as this would cause a pissing match. But, common sense can be applied to extrapolate what the above says for instruction.

Recession, or whatever we are currently going through, is bad for everyone. It is especially bad for businesses (like scuba specialty stores) that thrive on disposable, discretionary income. Honestly, I am surprised we have not had a much larger number of store closures. There have been a lot of them, but they have gotten very little "press". However, it ain't over until its over. More bad news may be around the corner for our industry.

Do your part - buy something from a scuba retailer. They will thank you for it.

Phil Ellis
Discount Scuba Gear at DiveSports.com - Buy Scuba Diving Equipment & Snorkeling Equipment