Make Good Money as a Scuba Instructor

[SpyderTek]

Yes, sure the class is about the same price no matter where you go in the world...

But Capt is talking about more than just the sticker price. He's talking the price of the class, Pluse the price of the liveaboard, plus the price of the equipment they didnt bring and now need to buy. Etc....

Even for thos of us with our own equipment and airfair and stuff the average price I am seeing for "dive weeks" to Bonaire, Coz and Balize are $1500.

I can totaly see what Capt. Is saying. And can see how it works...

However, not just anyone can do it. It takes a sales person's personality to be able to sell the big ticket items consistently.

SpyderTek

 

[joewr]

And the ones who make it big offer something unique! When we talk about making money, the language is the same all over the world. There is something called Return on Capital Employed (ROCE): it is a measure of how successful one is a recovering his investment...somewhat like an interest rate.

Now,if you want to make money on your own, you usually need to make an investment. When an investor looks for a place to put his money, he looks for an high ROCE and in this capitalistic world (which I love). And there are lots of folks constantly looking for investments: banks, private investors, etc. But I can assure you that they will expect anyone they entrust their money to to have a good "story", including a very good ROCE.

If it takes no investment to make money, there will be a lot of competition--and it will make it hard to charge high prices.(Case 1) This should be common sense; if I offer you a chance to make a lot of money with no effort, wouldn't you jump at it?

If it takes a lot of money, then only folks with a lot of money or who can get a loan or financial backing will be able to enter the fray.(Case 2)

In competition theory, Case 1 is said to have a low entry barrier and Case 2 could have a high entry barrier if money is tight.

You can raise the entry barrier to your competition by having a unique product or skill. Microsoft is a great example of a unique product...and Mr. Gates' fortune is the result.

Now, what is the demand for high cost dive training? And how much do you have to invest to get the business? What is the purchase price or lease rate for a live-aboard? How much to crew it? How much for all the equipment? How about the cost of carrying all that inventory to sell things to folks who forgot all that gear? (How many $500 Henderson Golds are you willing to carry, for example.)

I spent a lot of years in business and have seen a lot of get quick rich schemes...most of the "rich getting" was done by the guys selling the schemes.

In fact, I have thought that the best way to get rich is to write a book on how to get rich--and get rich on the royalties! And that brings me to my final point: P.T. Barnum said it best, "There is a sucker born every minute--and two to take his money."

Well, enough. I hope I did not offend anyone...

Joewr...at a loss for words

 

[captdave]

This information is give free. There is no get rich scheme here. Believe me this takes a whole lot of work.

Here is the next bit of information...

The way to do this is to package the program that appeals to people willing to spend money for a great adventure and lots of fun. Plus how to find these people
This means you are no longer giving scuba lessons or scuba classes.

What you are selling is SCUBA SEMINARS.

You charge your clients $3000.00 for an all-inclusive trip to one of the great dive resorts.

You can get the entire package as stated earlier a lot cheaper and that is what you do. You make the arrangements with the dive centers and the hotels and the boats etc. You should be able to get the entire week with food lodging and diving for around $850.00 add another $100.00 for incidental and your total cost for this seminar is $950-$1000.00. You use the resort facilities for your classrooms; pool or pool like conditions in the ocean equipment rental etc. etc. etc. Your students must supply their own basic 5 pieces of equipment (Mask, snorkel, fins, gloves, and boots). You make sure they get this equipment from you and your chosen dive shop that will work with you.

You can then make arrangements for their air fare to your resort that can cost anywhere from $500-$1000.00 Australia is $2000.00 so you have to charge the extra for the numbers to work out.

You take ten students on your scuba seminar and that leaves you with a cool profit of $10,000.00 for one week’s work. You can do this 10 to 12 times a year.
The great benefit of this type of seminar is that the people have paid a great deal of money to go on this adventure.
I can assure you many of the problems we are used to in the budget scuba class never happen. For Instance: Late and missed classes, late and unfinished assignments, classes that start out with 9 students and end up with two, too many worked hours for fee collected. Problems collecting the money, Students who just wanted to buy their C Card, Wives who really do not want to take the lessons but their husbands insisted, etc.

When people pay this kind of money they really want to do it and they don’t screw around. Plus the money is all collected up front with no refunds.

THIS DIVING ADVENTURE MUST BE A CONTINUING EXPERIENCE>

You follow up with the Advanced Course and 50-60% of the first students will go on to the Advanced Seminar. They will do this within the next year.

Now a great way to go is to create the basic and advanced in back to back weeks and you save the airfare for the second trip and your profits go way up.

This program develops superior divers from regular people. This means you must teach a superior course.

Next I will get into the meat and potatoes of this system. Where and how to find these students. The dynamics of a high priced scuba seminar and how to find the kind of customers it takes to make you what you are really worth as a scuba instructor.

Remember the Cert. Agencies have a vested interested in turning out a lot of students to do this they need for you to keep your prices reasonable. There are now three generations of scuba instructors who believe that this low budget system is the way to market scuba instruction. Continue on this path and make no money or
Copy a successful Instructor who actually made money in the business. Remember this stuff has worked and is time tested in not only scuba but also many other ventures.

 

[joewr]

Well, I do not intend to give a course in Business 101, but I will make one last post here on this topic(I promise).

Let's list the incidentals:

Insurance...do you think a resort will let you use their pool without insurance? And do you think liability insurance is cheap?

The Resort...do you think they will let you use their pool for free? How about a free room for classes? How many resorts have you been to where there is anything that is free? Believe me they have MBA's somewhere who will figure out your costs and not let you make a rate of return that is obscene! In fact, they might even go into competition with you. In fact, they already are: Chris Sawyer on St. Thomas has such an arrangement with a resort; the only thing lacking is air arrangements. And there are others...check the dive mags.

10 divers x 10 to 12 times a year = 100 - 120 divers...Ask your local dive shop how many divers a year they teach?

Cost of teachers...Aren't you going to pay them anything?

Competition...I can get a class of one or two people for the same price. Why should I go to you for my class of 10?

Advertising...You would be amazed at what it costs to run an ad in a national magazine.

What is offered here is basically what a travel agent does...now, there is an industry that is not famous for producing lots of millionaires!

Finally....no, I've written enough...


Joewr

 

[captdave]

Hi Joewr

As a scuba instructor your yearly insurance covers you where ever you teach. This is high quality insurance that is covered by LLoyds. You can add additionally insured pools, resorts, boats, etc at no cost to you. That answers that.
The reasoning for 10 people is not only for the money but your are creating dive buddies.These people will want to continuing with their new dive friends and they will all want to dive with you.

The resorts and dive boats I work with provide these services for free if you ask them. I always tip the instructors and helpers nicely and they remember because they aren't making squatt from the resorts etc.

There are virtually no advertising cost if you know the rest of the story. How to market to the right kind of people. I am talking direct marketing. Spending money on expensive adds is a waiste of money. I have done it and it does not work. Frankly I would rather take a trip to Las vegas as I get more for my buck.

Most dive shops have to push the numbers of students to break even because they are in a local bidding war all the time. Here is a good question you should ask? How many students drop out of scuba after their initial training?
This figure is very high and an embarresment to not only the shops but the cert. agencies as well.
This is because they have to do the cafeteria style of training and people do not have the great fun and adventure they thought this would be.
We give them a week of top quality superior training in one of the worlds greatest resorts or livaboards and let me tell you most of all of my students are still diving and loving it.

 

[socaldiver]

Capt Dave,

I have always had problems with people wanting to "share" get rich ideas with other people, what's in this for you?

Secondly, I believe the vast majority of people that are either looking to get into scuba or buying gear are going to do research prior to this major expenditure and realize that your "paradise" training is far more expensive than what they can do on their own.

And finally, do you work for Divers Emporium? If so, are you not showing a little conflict when they "Guarantee" the lowest prices on their products?

Inquiring minds want to know.

 

[Duca]

Well, I have no expectation of going into the SCUBA business. The only instructing I plan on doing probably going to be in the public safety sector or for friends/family... so maybe I'm not your target audience, but I still say your plans sound far-fetched.

No, this is not a negative attitude. I made a pile of money in the direct marketing industry years ago, so save your "dream stealer" speech.

Joewr pointed out some of the real world hurdles that would have to be jumped.

I think it's great if your plan has worked for you. What would you think about bringing along one of us as DMs or AIs at some point to see for ourselves how you do it?

Meanwhile, one thing that really bothers me about your posts is the following statement:

"...spend your career-teaching budget minded students that want to dive "Cheap" I throw them out of my shop."

I don't think that attitude speaks very well for the industry... particularly if you are to be considered one of the "successful" ones or someone whose example should be followed.


Don't get me wrong, if you sincerely want to help people, that's great. Meanwhile, bragging about how you've got everything figured out and degrading potential students who aren't in the top tax bracket carries a shadow with it that, frankly, makes me doubt just about everything you've claimed.

BTW, I checked out your site and followed your training link. I didn't see any $3000.00 luxury yatch 10 student minimum certification programs, but I did find these (can you explain how to make $100k a year with them?):
('course, I might have missed the "big money" courses, if anyone else wants to look, here's Capt Dave's complete price list: http://www.seaofcortez.com/courses.html )

$ 225.00
Quick & Easy
Canyon Lake, Arizona


269.00 Certification
Weekend getaway!
San Carlos, Mexico


$100.00 Tuition Fee Includes:

Five Classroom Sessions in our comfortable fully equipped classroom
Four Pool Sessions in two days in an Olympic sized heated pool, convenient, comfortable and safe.
Use of All Scuba Equipment for pool training. Cylinders, Regulator Systems, Buoyancy Compensator, Wetsuit and hoods. All maintained by Factory Trained Equipment Specialists.
Clean Fresh Breathing Air that meets OSHA Standards and is tested regularly for your safety and comfort. (Certificate available upon request).
Internationally Recognized Scuba Certification by the largest, most prestigious Certification Agency in the world.
Largest Most Qualified and experienced Staff of Scuba Instructors In the State.

 

[ScubaBaby]

but I still have a point of view even tho this is "devoted to those who want to make a good living teaching scuba".

1....I dont think there are many that will pay stupid money to learn with 9 other students. I paid £300 for my Open Water...it was 4 1/2 days one on one! I couldn't have asked for more...other than some more fish - the med tends to be a tad bare!

2....$3000 for a trip....I could get 2 weeks all inclusive in the maldives for that and some! Not a chance in hell.

Captdave, you refered to people like me as "budget minded diver" just cause I am not willing to spend silly amounts.

I am sure most divers with sense would look round to see price comparables to courses and see that the prices quoted are very steep and would choose a cheaper alternative that gives the same quality of teaching...and maybe even better.

I know I am not an instructor, however I think this thread is best open to non-instructors as well, as we would be the ones paying for the courses you talking about.

Another point, the big organisations are trying to appeal to the young generations to get them into diving young, if this pays off, we will have more teenagers looking to do there O/W after doing PADI Seal and Bubblemaker etc...and I have strong doubts that they'll be able to afford these prices you seem to feel are suitable.

Just my thoughts.
NB. The prices your quoting on the board and the prices you charge on your webpage seem a tad different, if this is the way to earn the money...how come you dont do it?

 

[svs3]

I guess to start making big bucks in the scuba industry, I'll just have to take some time off from my part-time job making millions a years buying and selling real estate with no money down.

BTW, CaptDave, I'm keeping my eye out for the infomercial.


Gimme a break,
Sam

P.S. I don't know about you but I not sure I'd want to cave dive with "Mexican Guides trained by Captain Dave in Merida" (photo on bottom left of page) http://www.seaofcortez.com/cenote.html

 

[WetDane]

Ok - so I was about to say good riddance - ever since the gas mask thing I have had an aversion to Capt. Dave and that happens...

However - from a purely marketing point of view - the idea of getting %incetitives on sales seem like a good idea...

All is not well in the scuba industry, if you read the material closely you will see a couple of good ideas and we had some discussions on this a while back as far as how to improve "staying" in the sport and therefore laying more money for equipment.

I am about to start running dives the weekends following OW certification, when I was cerfied nobody bothered to - alas - it took a long time before I got back in the water.
The dives would get people out and diving and excited about AOW a month later...

I will keep you posted on the turnout.

Big T