An industry that is in decline

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WVMike

Contributor
Scuba Instructor
Divemaster
Messages
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Location
Northern WV
# of dives
500 - 999
I am following a Thread in BCs and in the first post by JJ he made the statement that the dive industry is in decline.

Is the dive industry in decline?

If so why?

And, what can be done to change that?

I thought I would start a new thread for this discussion as the other thread was a whole other issue. Following is the thread that started my thinking.

http://www.scubaboard.com/showthread.php?threadid=36200&goto=newpost

I have followed many other threads with the LDS vs Internet sales debates, Agency bashing, and of course the great Stroke vs dir debates.

I love to dive and like so many others here toy with the dream of making a living diving. But from what I gather this is one tough business.

I am looking for why the decline, and more importantly, positive solutions.

One thing I have learned on this board is there is a wealth of experience in the members across a broad spectrum of careers and personalities, with many different and good ideas, but with that one common link.

thanks for the opinions
 
The dive industry is somewhat part of the leisure industry. And what's the first thing people forego in difficult times?

I'm not sure the 30% or so decline has much to do with the industry itself. There are less travelers, less new divers, and less new buyers. Replacement buys are delayed until better times.

IMHO, the dive industry is just another casualty of the current situation.
 
What type of decline do you mean - economic decline, or a broader decline in terms of quality of divers and training?
 
Also, the entire outdoor industry is in a decline because of the aging population...although I would venture to say that sales of RV's are increasing, most of the outdoor leisure activities are seeing declines in participation overall.

It is one of the topics of constant discussion within the industry...how do you keep niche industries which require very expensive gear etc. going with both a declining participating population based on both age and the blowback from huge recessionary monetary issues?
 
I was dry for ten years-- work, family with young kids, wife doesn't dive. . .whatever. I came back recently and I'm hooked and my daughter starts NAUI OW next week :) .

But lately I've come across about two divers who got certified years ago and gave it up for every active diver. I wonder if the industry grew quickly and now is just finding it's natural level of divers without much growth. Just replacement growth. May have nothing to do with the economy. There's probably just a percentage. . .significant, but probably less than half. . .percentage of folks who learn to dive, then give it up for any number of reasons.

JPC
 
bwerb once bubbled...
...I would venture to say that sales of RV's are increasing...

Welcome to the RVboard! Problem is SPAM is not really DIR...

:D
 
Dive gear became "modern" since at least around 1980. My definition: 3000 psi aluminum tanks, regulators with heavy yokes and three LP ports. I know that people will argue, but there really has not been any big change in dive gear since then. Tanks, regulators and BC's last practically forever under ordinary usage. They are expensive so people never throw them away. So, there has been a building back-log for 23 years of perfectly usable dive gear. Eventually a saturation is met. Companies are trying to sell new regulators and regulators in circulation eventually outnumber divers 5 to 1. It gets to be a tough sell.
 
are clearly a major issue, and one that isn't going to go away any time soon.

As near as I can tell, its being caused by the agency/shop/diver/manufacturer dynamic that exists today.

Yeah, that's a serious charge, and demands explanation.

OK.

Consider this:

In a recent thread (today, in fact) I pointed out that my g/f and her daughter just got certified. This is in a shop environment (inescapable around here) that plays the "gear game", with shops that play the protectionist pricing games, sell cheap training (as an investment per-hour, anyway) and generally pander to the model that DEMA and the big manufacturers (and some not-so-big ones like Halcyon!) seem to think are just peachy.

What model is that? The model that says that MSRP is the "right price", that the shop is your "lifeline" to diving, that you "need them" (rather than the other way around), etc.

What does this lead to?

One of two possible bad outcomes:

1. The new diver comes in, and "draws" a good instructor by chance (he lacks the knowledge to make an informed choice, and even if he had it, that's no guarantee - see my other thread!) He gets trained, and in his enthusiasm, which the shop encourages of course, he buys gear.

Two days later he finds out about Leisurepro, and the gear is now his. He adds it up and realizes that the $2,000 he spent on the hardware came to $1,100 at LP. He now feels taken for the other $900, and that "cheap" class suddenly is very expensive in his mind. He's been had, and the relationship he had with the shop has been irrevocably damaged. If he was lied to along the way (e.g. LP sells "counterfeit" or "second" gear lines, etc) that just makes it worse.

Now you've got a diver with a strong disincentive to come into the shop. But that same diver was "sold" the idea of the shop being his "gateway" to diving. He now feels trapped, and many will drop out at this point, figuring that the $900 down the drain is a small price compared to what he COULD lose if he keeps at it.

2. The new diver comes in and is not pressured to buy gear or sold the "bill of goods", or he simply knows someone who tells him that its all BS up front. He is not snowed by the sales job. However, he draws a crappy instructor, who thinks that buoyancy control is a letter puzzle rather than an essential skill.

Two dives out of OW training, he loses the line for ascent, possibly even due to his own acts (e.g. silting up the bottom originally caused by his lack of control!) and does a rocket-like ascent in free water. He may get hurt, but if not, he does get scared. REAL scared. HEH! This diving stuff is hard! That wasn't what I was taught.

This guy is likely to drop out from fear - not of being ripped off continually, but of something much more primal - injury or worse.

...................................................................................................

Ok, so we've defined a problem... what is the solution?

The two problems appear to be unrelated but they are not. By artificially propping up hardware prices and thus margins at the local shop, the inevitable decline in training standards is not only initiated but fueled. The game becomes one of cranking as many students as possible through "the system" at a low price, in the hope of selling one in five or one in 10 a full kit, which keeps the doors open. Do 200 divers a month, you can make a nice chunk of money.

But you can't do 200 divers a month and provide quality instruction with the staff levels, or time, allocated.

By removing the prop-up of hardware pricing, it will naturally find its own competitive level. This will be at a lower price-point than we have today. It will not, for the local shop, by "Leisurepro" prices, but it'll get in the ballpark. For a 10 or 20% increment over the mail order houses, the local shops will sell more gear. They'll make less on each sale - quite a bit less - but the traffic will rise in their store, divers won't feel like they've been robbed if they buy locally, and traffic = more diving - whether coordinated through the shop (and to their profit of course) or not.

The other inevitable reality is that training will become more expensive. But does the shop care? Not really. Money is money. Leisure expenses tend to be a fixed part of people's budget - when its gone, its gone.

What the shop gets out of this is that the "drop out" rate goes way down. You can't sell to someone who isn't there. The shops here in town have lost a whole bunch of opportunities to sell me various things - I might have bought or I might not have, but when I decided to get my own compressor, fill my own bottles and do my own Nitrox blending my trips into those shops collapsed from a couple a week to once a month or so!

IF they got back the "couple a week" AND, at the same time, had pricing that was enticing to me, they'd be selling me a whole bunch of stuff.

I recently outfitted my g/f and her daughter. Guess how much the local dive shops got of the money spent on BCs, regs, etc?

Zero.

If these two had certified and my g/f was not involved with me, guess what the odds are that she would have dropped out after her first "real" OW experience after class, when she found that she really didn't have all the skills she needed?

VERY HIGH.

The shops, manufacturers and DEMA either have to change this problem, or they will continue to suffer the shift to the 'Net and an extraordinarily high drop-out rate.

BTW, Halcyon is part of the problem, not the solution, as JJ is one of the staunchest supporters there is of the "fixed price, you pay full list" arm-twisting system and from reports here and elsewhere they are ruthless in threatening to, or actually, cutting off dealers who sell at a discount from their "list price."
 
WVMike once bubbled...
I am following a Thread in BCs and in the first post by JJ he made the statement that the dive industry is in decline.

Is the dive industry in decline?
I read that post yesterday and I realised that I had never though about it. I guess I assumed that every year more people try SCUBA and get hooked. So the ever growing base expands, but then not everyone lives as close to the water and it's hard if you can't do it easily in your own country.
 
Yeah, Karl,


The LDS is an evil, evil thing, and hopefully they will all go away, and then everything will be better...

Maybe then, Manufacturers will sell direct to consumers, and parts kits can be had by anyone. A new era will be born, and Karl will be KING leading the charge!!!




Now, lets stop smoking crack and see the real light. LDS are here to stay, and we will live thru the LP, and DIveInn, and we will get new students, and there will be satisfied, and happy customers.

You know that old saying, you cant please everyone???
 
https://www.shearwater.com/products/perdix-ai/

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