The cost of Padi

[Cacia]

actually, I almost already have them ALL. and I don't want to be an Instructor because teaching people how to clear a mask is not the fun part. You really never addressed my point. Nice little side step.

 

[TheRedHead]

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.

I assume you meant that because Microsoft is one of the most hated companies in the world? They probably have as many lawyers as PADI has insturctors. No comparison.

 

[TheRedHead]

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

Advertising is an expense item which directly decreases profit. There will be a point of diminishing returns on advertising ....and I'm sure they know where that is.

 

[Cacia]

okay, you win. I am bored.

 

[dlndavid]

Are you a bean-counter?

No, see profile :bandit_2:

 

[Divedoggie]

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.

I have been diving with Kristy's Op. It is first rate. Her customer service begins weeks before the dive, and she stays in touch after you get back home.

:clement2: That being said, the market determines the prices. PADI may be testing what the market will bare. If people continue paying the prices, then those will be the prices.
If there is a drop off in new students, then expect to see some "specials!":mooner:

 

[lowwall]

What exactly is the PADI brand worth? I submit that it's not a whole lot. Non-divers are unlikely to have more than a vague awareness of certifying agencies and experienced divers know PADI is just one of many.

I chose the shop I took OW from by checking the yellow pages and then visiting the closest couple and talking to the people working there. The certifying agency they offered never entered into it.

Seriously, have any of the shops/instructors out there been told by a prospective student that they would only consider a PADI course? For those of you with websites, what percentage of your hits come from a PADI referral page?

 

[Christi]

... 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. ...

... 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...

WHOA! You clearly have no idea of the other expenses involved in running a dive shop/operation!

Also, regionally, things are much different. Here in Cozumel for example, a typical instructor salary for a course is 40% of the course cost. The shop supplies the tanks, equipment, student materials, shop overhead, liability insurance, operating licenses, etc. etc. You can't just take the direct costs like books and instructor pay out of the course cost and coll it profit...it does not work that way at all...the shop actually makes next to nothing on the course...but the instructor does.

 

[TheRedHead]

What exactly is the PADI brand worth? I submit that it's not a whole lot. Non-divers are unlikely to have more than a vague awareness of certifying agencies and experienced divers know PADI is just one of many.

The owner of my LDS is also a vice president of SSI and I have picked his brain about the business model. He initally pointed out to me that SSI is a company that sells books basically and acts as sort of a registry for card holders. I think the PADI brand is worth a lot. The customer who is reseach-oriented will likely choose PADI for their initial certification. That's what my spouse did and found a PADI shop instead of the larger local SSI shop. He said and I quote, "PADI seems to be most popular and is recognized around the world." There is a belief with new divers that another card might not be recognized by another dive shop. They don't understand the universal recognition of certification cards.

The international traveler will discover PADI literature in the nice hotels with a diveshop stamp on the back of them. Once you are certified, then a lot of divers will join the PADI travel club and get a monthly magazine selling continuing education, along with coupons for additional courses.

SSI works very much like PADI but on a smaler scale because they lack a strong brand.

I can understand why some people feel that PADI is a money-grubbing machine, but it is a business and doens't operate in a beneficient manner. It's focus as a business is to make a profit, just like every other successful business.

 

[jbisjim]

Padi is a marketing machine, Marketing machine cost money. You pay now. (Put Another Dollar In)

However, Padis marketing machine pays off for them. A lot of places that need DM's require Padi certifications. That mean $ for Padi. that means clout for padi.