scagrotto
Contributor
If you refuse to change the model, then yes...you are correct in that you cannot raise your course price.
Would you suggest that all of the auto makers sell only cars that cost $50,000 and more? The percentage of people who will pay $1000 or more for an OW course is akin to the percentage of people who will (or can) buy expensive cars. Some providers can cater to that segment of the market, but that market isn't big enough for everybody. Auto makers are at least lucky enough that almost everybody wants their product, and almost all of the market wants something better than a Yugo.
I'm a dry caver (my wife says I can't take up cave diving unless we get divorced). I took over 1000 students on beginner caving trips for my college outing club, and virtually every single person had a good time. Almost everyone who joined the club wanted to try it (it was even more popular than the beginner rock climbing trips), but only a very small handful went caving more than 3 or 4 times. There are plenty of other activities where the number of people who will try it will always be much higher than the number of people who will really pursue it, and diving is one of them.
No matter how much advertising and how many pretty pictures the dive industry puts in front of people only a small percentage will take an OW course. Most of those people are going to use cost as a major factor in deciding who gets their business, and they're going to want a class that's fairly short and simple. You can make the course faster, and you can let people study at home instead of sitting in a class for a few Saturdays to make it a few bucks cheaper and to suck in some people who can't be bothered to exert a bit more effort. You can also offer a product that costs more, both in effort and money, and tell people why that's a better choice, but most are going to opt for cheap and easy and if you don't sell it to them somebody else will. After the course, a lot of those people won't continue diving no matter what you do, and a lot more wouldn't have taken the course in the first place if they couldn't do their checkout dives on their tropical vacation. It's just the nature of the sport.
I'm sure a lot of the people who stop diving would continue under some circumstances, but a lot of that just isn't under the control of the dive industry. One of the biggest factors is disposable income (which isn't going up for a substantial percentage of people). Those who are warm water divers don't all live where the water is warm and clear, and most can't manage more than one vacation per year. Another is that many (probably most?) divers have non-diving spouses, and even more have non-diving children. It doesn't take a rocket scientist to know that's going to make it that much harder to go diving. Of course it also means there's some market potential in getting the rest of the family to become divers, but that runs up against cost even if every non-diving family member was interested in starting.
I'm pretty sure that most dive shops are run by divers who found themselves in business rather than business people who happen to be divers, and their business tactics could be better. Still, given the nature of the market I'm pretty sure that the best change in business model that would earn more money for most dive shop owners is to get into a different business.