The cost of Padi

[Cacia]

well, here, the "shop" lobby is called HIRSA, I think. It gives the retailers some collective bargaining power.

 

[oly5050user]

Exactly right - It is because Padi is such a big brand, that they can operate the way they do. You hear a lot of people who want to learn how to dive come in to the shop and say 'I'd like to do my Padi' - That is because in their mind, Padi is synonymous with dive certification. We, as instructors, diveshop owners etc want to be associated with Padi, because we don't have to do the marketing - it is done for us. All we need to do is say 'Hey, we can give you your padi - Only 300 bucks..'

When you put it in that kind of perspective, we charge each student hundreds of $$ for a course. Padi gets about $40 of that money - $20 for the pic card and about $20 for the book. If the dive shop certified say 480 students a year (4 days course, 8 students on each course, 20 working days a month..), at $300 a pop (Which is quite cheap) , it would yield a revenue for the diveshop of $260 - Less direct costs - Instructor fees - Say $50 a student - Leaves $210 per student. Now, the shop would have a Gross Profit of $100,800 from which writeoffs for BC's advertising, pool etc would come out of.

In this perspective, the $750 the shop would need to pay Padi for the brand recognition isn't actually all that bloodsuckingly evil... (nor is the $150 a year instructors have to pay to Padi - After all, they're making $2000 a month by way of diving (This shop is nice - It pays a reasonable wage to their instructors))

Now add 10 instructors (in busy resorts) all doing 5 courses a month - Guess what - The shop has just made a million bucks before depreciation and rent.

I think if we have anything to complain about, it's the fact that instructors and divemasters have to work for slave wages - But that is only because so many people want to spend a year working in the sun whilst travelling, and don't mind getting paid peanuts.

If diving wasn't so damned enjoyable, I bet the availability of instructors would be quite a different story.

I don't know of any facility getting 480 students a year locally..There may be some in the world but not around here..at $300. per student minus $50.to instr..minus $50. in pool time..another $25. equip depreciation..telephone,electric,advertising costs,insurance for facility,$100 boat fees(50. per day)..What is left for the lds??Maybe $30/$40.???this is why equipment sales are so necessary to a facilities survival..Con Ed motivates a student to stay in diving and creates a need for equipment sales..

 

[Cacia]

here, the shops offer an incentive plan to the instructors to sell Nitrox, advanced classes, etc. Almost like a commision.

 

[RonFrank]

That's not accurate. PADI does a lot of marketing and has established a BRAND. What value does the Better Business Bureau have to a merchant other than the brand? Many new users have come to this site and stated that they chose PADI because it seemed to be the most established and popular. They assumed it would be good. Branding is a very powerful marketing tool. Companies spend millions to billions each year to establish a brand.

Give examples of what marketing PADI does other than through the LDS?

In fact, go to the PADI website, the advertisement section is all about how people can advertise with them.

I'm really not anti PADI, but they are starting to take advantage of their market position in the name of the mighty dollar it would appear. By in large ths position has been achieved not by spending Billions on establishing a brand rather by riding the backs of the LDS, Instructors, AI's, and DM's who certified with them, and now promote them.

PADI, is NOT Nike, the BBB, Verizon Wireless, or like ANY other large company I can think of. They have achieved their position by certification of a large number of individuals who go on to certify others. Almost like a pyramid Scheme.

Now after decades they are in a position of taking advantage of the very folks that made them, and it appears that this is what they will do.

 

[TheRedHead]

Give examples of what marketing PADI does other than through the LDS?

Consumer diving shows, magazine ads, brochures in hotels, just to name the first 3 that popped into my head.

 

[dlndavid]

And they would be "total big sillies" if they didn't take advantage of their position for the almighty dollar, capitalism 101.

 

[Cacia]

but, David, isn't there a point of "diminished return"? Ron is articulating that point very well in my view.

 

[dlndavid]

what point, you're not supposed to be a profitable business, or big?

 

[Cacia]

Sigh. The point that your image with the people helping you make money in a symbiotic relationship, matters? They need to feel good about you to give their best. maybe the Microsoft analogy?..."enlightened self-interest", are you familiar with that one?... I give.

Think about Christi...read her post. I think she sounds like a great operator. Maybe PADI should cut her a break, with the hurricanes and all, you know, make her feel good, make her LIKE them, make her LOYAL.

hearing her story, if I go to Coz, I will giver her a try. PADI logo, or not.

Are you a bean-counter?

 

[dlndavid]

If people don't like PADI prices, don't use PADI, nobody has a gun to your head.
There are other agencies that certify.