Dive Shop Ownership- Good idea?

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ampdiver

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I am looking into purchasing a shop in the Pacific Northwest but don't know some of the vitals of the sales industry. Are more divers moving away from the local shop and into an on-line purchasing menatity? Can anyone let me know where to get statistics on industry sales figures? I am very interested but want to make the right decision here. Please help if you can.
Thanks.
 
ampdiver:
I am looking into purchasing a shop in the Pacific Northwest but don't know some of the vitals of the sales industry. Are more divers moving away from the local shop and into an on-line purchasing menatity? Can anyone let me know where to get statistics on industry sales figures? I am very interested but want to make the right decision here. Please help if you can.
Thanks.

I've become friends with my LDS owner, and as he likes to say "if you want to make a million dollars with a dive shop, you need to start with 2 million dollars". He's lucky that he doesn't need to live on the shop income. Your success will all be about your location, service and attitude. You will also need to deal with the internet businesses who are able to offer much lower pricing in some cases. It would be nice if people would support their LDS and see the value of experience and service, but we now live in a Wal-Mart/Amazon/E-bay society. I want it now, and I want it cheap. Just my $.02 ($.00937 after taxes, $.00325 @ Walmart.com).
 
Welcome to the Board!

As for your questions, every diver wants to have a great LDS in His/Her area. I wish you luck if you decide to pursue this. That said, I will be brutally honest with you. The first answer is yes, more divers are moving towards online purchasing as is all of sales in every industry. If you can't compete with the internet IN SOME WAY then you are lost. My personal OPINION is that most LDS's will have to add some type of internet sales option to stay open unless they are very lucky and do everything right and also happen to be in the right spot to do well. After all, here we are discussing this on the internet. SO, would I invest two hundred grand in a dive shop? Only if I wanted to make one hundred grand, and that's the reality in MOST cases.

I would contact PADI, SSI, and the other agencies to start and see what info and advice they can give. I would also take a long hard look at why the current owner wants out. Good luck! You will need it.:wink:
 
If Only every dive shop were like Scubatoys. High volume of Internet sales, competitive prices, knowledgeable staff, and a Brick and Mortar shop to browse. I'm very tactile, I usually need to see it and touch it before I buy it. I'd Love to have a ScubaToys in my neighborhood. BTW I've not yet done any business with them. If one could duplicate their business model, I would think they would be successful. Or maybe Joe and Larry could open a store up here?
 
I agree with merxlin and Scubadobadoo. Our local diveshop is located inside of the owner's primary business as there is no way for him to live off just the dive shop. You'd need to do what Larry has done and have a brick and mortar store but sell online in order to get your sales volume up in order to get cheaper prices when you order from the distributors. I don't know if it's true or not, but our LDS sell AL80 tanks for $180 and he claims to lose $5 on every tank. The more you sell, the cheaper you get it for, and the cheaper you can sell it for. With online stores like Larry, LeisurePro, Scuba.com, etc, a LDS is not a business I would want to own.
 
my take on it, because i'm thinking about becoming an instructor while not opening the dive shop is "follow-through." you are going to have to advertise and call your customers to come in and refer new ones to you! if you can do that, or are willing to, i think you will be successful! my experience has been that most shops just wait for customers to come in... perhaps the shop is something to do before their next dive!

good luck, and DO it!


--c
 
LDS's of 10 years ago definitely aren't going to be very competitive today. But there are advantages to that a LDS would have over the internet. (Fast repairs, training, etc...).

I don't know that this is something I'd just want to "dive" into. Why not start your own "Scuba Repair" business and see if you could grow it from there. That'd be better than buying a $200,000 money pit.
 
as far as internet competion... i think it plays to the laziness of the consumer! my experience in business and investing is that the consumer WILL pay for good customer service and higher prices if they are getting other value for their dollar. when one compares the internet, wal-mart, sports chalet, and the local dive shop, on the surface, they are ALL the same... it's the person in the LDS that makes the difference!

think of it this way: you go to restuarants and leave tips... bars; for someone to open a beer for you... you tip the delivery person... you pay to have your car washed... etc, etc, etc... we are willing to spend money when there is something that we gain from it, be it inherant or intrinsic value; it's in the PERSON!

you CAN do it!



--c
 
Anyone who whishes to own their businesses should be commended in my opinion. I whish I had done that when I had the chance, now, I have to start from step 1, again.

Rant aside :D Having thought about a shop in the past, albeit photography and not diving, I was faced with the same issues that afflict most small shop owners: How do you compete with Internet sales and larger "brick and mortar" shops.
Pure sales is NOT going to get you there, even combining Internet sales with a shop may not get you there, at least for a while. ("There" is different for most people)
If you want a shop as a second source of income while you have a secure primary source, that's a great way to begin.

Considering the demographics of where you want to set up shop is also key, that will drive most aspects of what services you offer your local clients, these are the folks that will spread news of your shop around and recommend (or not) your services.

Consider overhead, things like rent or mortgage, utilities, local help, taxes, insurance, etc.

Consider sponsorship, local schools, activity groups, all dive agencies and their respective membership (PADI, NAUI, etc) and most importantly IMHO, travel agencies, unless you want to concentrate on local tech diving only.
Lastly, since sales alone will most likely not cover the larger part of your expenses, consider what services you will offer.

Classes, services and maintenance, fills, and general customer service. You may have to wisely take a small hit to your bottom line initially by going way above and beyond to ensure your shop is recognized as the place divers and those considering diving will think of first. Remember, you can replace a fin strap at the shop and you deal with the manufacturer directly; you can NOT replace that customer who left your shop permanently because you told him/her to deal with the manufacturer.

Lots to consider. Research wisely. Budget accordingly and do so conservatively.

Good luck !

Tanker
 
Well as a dive shop / internet web site owner I can tell you there are customers who feel strong both ways. The bottom line is that you need to do what you do best. The customers will migrate to what they are most comfortable with. You just need to do your best in the area you've choisen.

We have customers who wouldn't shop one or the other. But for them the sun rises on internet sales or alternatively LDS sales. They ahve strong opinions both ways. We hope we can do a good job servicing both........we sure try. Every customer is critically important to us.

I can tell you our internet sales growth is moving "off the chart" compared to other sales. LDS must make some adjustments in their business approach or the internet will eat them alive over time........especially if their service is average at best.

Hope this helps..............I'd be happy to talk to you if you desire that.

Happy Diving
 
https://www.shearwater.com/products/perdix-ai/

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