Starting a Dive Shop

[dave the diver]

Sooo ... any of you guys got any advice on starting up a dive shop. Is it best to start a new one, or wait for an existing one to come up for sale? Sales/service and training? Or trips? Or no training?

I'm toying with ideas and would be grateful for any advice.

 

[ShakaZulu]

Don't do it...............lots of post to follow why you shouldn't. Oops, just realized you were from NZ, economy may be different down there. There is a lot of internet shopping going on in the US. The LDS is only there for training, so they really not very profitable. Got to get the newbies to buy all their gear right after the first class...........

 

[Otter]

As the old saying goes, the way to get a million dollars in the SCUBA industry is to start with two million!

 

[Al Mialkovsky]

As the old saying goes, the way to get a million dollars in the SCUBA industry is to start with two million!

I know a guy who ended up a millionaire after investing in a dive shop. Of course he started out a multi millionaire.

 

[wedivebc]

Sooo ... any of you guys got any advice on starting up a dive shop. Is it best to start a new one, or wait for an existing one to come up for sale? Sales/service and training? Or trips? Or no training?

I'm toying with ideas and would be grateful for any advice.

Best of luck dude, I really mean that. The industry is in real transition and just like the men who got rich off the great depression, a savvy dive store owner can use this new e-economy to his advantage. I am NOT a savvy business man and that is why I have a basement full of dive store inventory. If you weren't so far away I would offer you a great deal on startup kit.
I do believe a successful dive operator has to think outside the box. Be positive and most importantly be honest and they will come.
Keep us posted 'cause if you really love the sport you should kick some A$$

cheers,

PS was in Aukland in '91, loved the place! Great people

 

[DandyDon]

How to quickly have a Million Dollars with a Dive Shop?

Start with Two Million...

 

[wedivebc]

How to quickly have a Million Dollars with a Dive Shop?

Start with Two Million...

Boy that just keeps getting funnier

 

[Scubaroo]

Sooo ... any of you guys got any advice on starting up a dive shop. Is it best to start a new one, or wait for an existing one to come up for sale? Sales/service and training? Or trips? Or no training?

I'm toying with ideas and would be grateful for any advice.

I've started an online operation in the past year here in Melbourne, offering gear, and dabbling in trips. It's an unfortunate situation physical stores find themselves in now, where the internet provides an alternate retail channel, steering customers away from them. Some manufacturers & wholesalers don't help the situation, with restrictive discounting policies, and failure to recognise the online retailers as legimate outlets which leads to a environment of discounted grey imports further increasing pressure on dive shops for gear sales. Anyway that's my take.

This post isn't meant to be a "how to fix the diving industry" post, but IMO for any store to remain a viable concern, they are going to have to embrace the internet, and follow a business model where low gear sales won't spell financial death. In other words, a diving service centre, not a dive gear shop. Training, gear rentals, air, nitrox, equipment servicing, dive travel, dive clubs & boat charters all provide revenue streams, without having to sell a single regulator. Opening a shop & hanging regs & BCs on the wall is not going to be a very successful venture in this age. The only thing I use local stores for is wetsuits (just bought an off-the-rack and a custom), and tank rentals/airfills. Many other divers do the same.

Anyway if I ever enter the bricks & mortar world, that's the way I would approach analysing it - a resource for divers, with revenue based on service streams rather than gear sales streams, and determine if it's going to be viable. Gear sales are icing on the cake. Look at what Amazon did to corner book shops - the internet is slowly doing the same to dive shops that rely on gear sales to stay in business.

 

[oceancrest67]

Yes, it is true that the online market place is here to stay...dive gear is available for lower prices. But, there remains a concern with purchasing regs and bcs online...warranties, grey market items, and what about yearly maintenance and service? I would not purchase a reg or bc from an online retailer...but, I might purchase a set of fins or a wet suit. The thing is...a good LDS can maintain training and can sell newbies gear...but a really good LDS keeps customers coming back for more...more training, gear upgrades, GOOD service etc. A good LDS has to wear many hats and has to wear them well...if an LDS is just going to sell quick training and push gear...customers will eventually go elsewhere. Still...with diving...I think most customers interested in staying in diving for an extended period of time want the personal service and the hands on approach with somebody they know and trust...good service really counts.

 

[Al Mialkovsky]

I would not purchase a reg or bc from an online retailer...but, I might purchase a set of fins or a wet suit. The thing is...a good LDS can maintain training and can sell newbies gear...but a really good LDS keeps customers coming back for more...more training, gear upgrades, GOOD service etc. A good LDS has to wear many hats and has to wear them well...if an LDS is just going to sell quick training and push gear...customers will eventually go elsewhere. .

Valid points all. In the past few years in our area 3 dive shops have closed with no new ones opening.

We have had good customers bring their gray market gear to us for service and warranty work. oops. We will do what we can for them but when the call is made to the manufacturer we want them listening in when we read off the serial numbers.

I'll have to be honest. There are a couple of divers who love to hang out at the shop but if we can't meet or beat an internet price (which we seldom can) they don't buy from us. Yesterday, with a smile on my face, I asked one of these guys if he planned to hang out at Leisurepro if we ever had to shut down because of all the online shopping that goes on. He says lower your prices and I'll buy here. I told him, again with a smile, that if we did that we'd shut down very quickly. He doesn't get it.

Those who do shop at the shop I instruct for get other deals, such as minor repairs for free, we'll sneak them a little air every so often and of course we'll discount activities and specialties.