Future of DiveShops?

[CAPTAIN SINBAD]

I was wondering what is the future of dive-shops? Please correct me if I am wrong but it appears that internet sales have gone up and LDS sales have shrunk pretty rapidly for the last few years. I have no data to substantiate this but every time I am on the boat and I ask people where did they buy a particular piece of gear and more often than not, people mention an online retailer (DRIS, Leisurepro etc) than a brick and mortar store.

I also see a trend in the rise of instructors teaching from their basements. May be it is a local thing but there are some very good instructors who chose to move away from "shops" so that they could teach on their own. I really do not know if this is a good thing business wise because my understanding is that instruction itself never earned anything in the dive industry. Its purpose was to only create consumers for diving gear. If someone leaves a shop to take over the least profitable part of the industry then there is nothing in it for their own selves other than a sense of accomplishment.

It is also my understanding that diveshops have started to become "repair shops." If you want your regulator serviced than most people are still going to LDS rather than mailing it somewhere. Mail system only works one way when you are ordering stuff. If you have to drive to the post office to mail a regulator for annual service then it might be convenient to just drive to the LDS.

Is it air-fills that is keeping dive-shops alive? Compressors can be had for around 3000 USD and very casually organized dive clubs are capable of having these. In fact if 10 people put money together to buy a small portable compressor than it should serve their purpose better than getting airfills from a shop. With the exception of nitrox and specialized gasses, air-fills seems to a very weak leg for dive businesses to stand on.

Where are we headed? Can anyone please shed some light into this? It seems like different functions that were performed by the "shop" have all become industries by themselves and are moving away from each other. Profit wise, internet retailers are growing to take the bulk of profits, followed by tech oriented shops that provide specialized gasses such as nitrox and helium etc. Third in the line are repair shops that call themselves "dive shops" but survive mostly on servicing gear. Bottom of the food chain is what you call "the instructor" who is going independent.

What is happening folks? Can any of the professionals help me understand where dive-industry is headed and what is the future of LDS?

 

[OtherHalf]

I don't see casually organized clubs getting into compressors. Its more than the initial cost. The maintenance, filters, air checks, electricity to run the compressor, and knowledgeable operators all add to recurring costs, even if the operator fills for free. That doesn't even begin to address the legal liability of a club. (Who pays insurance in case a diver dies while diving a tank full of bad air? Who pays the home insurance for having specialty equipment installed in the garage?) Plus the cost and liability of inspecting, cleaning and servicing valves and tanks.

I think the basement instructor is a good move. Drives up the price, but also the quality. They went to their basement to get away from lowest common denominator training. They can charge more for better training, and start to be profitable. And with internet they can run a more streamlined business. Service gear, teach classes, recommend gear. And all without the overhead of keeping stock or paying rent on a storefront. I think that may be the future. I'd rather pay for the training than the nice storefront and the depreciating value of BCDs on hooks hand hangers on a pegboard wall...

 

[drrich2]

Often dive shop staff teach, I believe, and many new divers prefer to handle & examine gear before they purchase it, and are susceptible to what the professionals they know (staff & instructors) tell them is good.

My LDS is located at, and owns, a quarry dive site which is a regional center for dive training; other shops come from miles around to use it.

A shop can have a sizable selection & # of rental gear items. Not as easy for a solo instructor to have all that.

People don't just need air fills; they need hydro. and ideally visual tank inspections. And remember; some people rent tanks rather than own.

Dive shops often organize exotic dive trips. Many newbies will prefer traveling with a known 'tribe' of seasoned local divers, some of whom they know, when traveling to a foreign land to dive (even if that's just down to Key Largo, FL, from another state), benefiting from those who know where to go, what to do, where to stay and so forth.

Of course, after awhile, you learn you can buy a lot of gear types online, many of which don't require routine servicing, and many divers can plan and arrange their own dive trips, once they go on a few and see how it's done.

Richard.

 

[Dive Right In Scuba 2]

I agree with you that the dive shop business model has changed greatly with the expansion of the Internet. I see the business model of the future dive shop as being one that attracts a community of diving with mentorship, events, trips, equipment assistance/service, and ability to source equipment. In years past it was simple because there were only a few types of basic equipment that were easy to keep stocked. Nowadays you have a variety types of equipment and manufacturers its near impossible for a small dive shop to keep that type of variety stocked. For example, let's go back to the 80's and early 90's...while I wasn't diving back then I imagine the jacket BCD reigning supreme and tech was for the intrepid few who built their own equipment in their garages. Nowadays you have jackets, back inflates, modulars, BP/W. To add to that you have techreational or tec-lite whatever the nomenclature of the week is. Honestly how can you keep up? Of course you have some LDS owners who are "dinosaurs" and only carry certain types and brands of equipment that they like. In addition, some enjoy price gouging customers not realizing the fact that a simple google search will tell a customer what the fair price is.

For the LDS to survive, a shift in business model is necessary.

 

[TMHeimer]

As an outsider when comes to retail and shop economics, my observations are that our shop here, 4 that I patronize on the FL panhandle and one in Miss. all seem to be doing about the same as they always were the last 9 years or so.

 

[mrmikey32]

Living in the midwest, dive shops are some of the only places we can get classes.

Also, not many options to see gear, so dive shops again.

 

[Kevrumbo]

Gear and especially regulators are not just economical commodities, they are first and foremost "vitalities" --critical life support equipment that I don't go cheap on.


All my regs are bought from LDS Pacific Wilderness San Pedro because they are authorized dealers (ScubaPro/Apeks/Aqualung) and have the knowledge & expertise to directly service that equipment. If they have the ability to competently do yearly service on all of Los Angeles County's Fire, Sheriff & LA Port Police Police, and the USC/Wrigley Science Center Research Divers on Catalina-- all of their Scubapro Regs in volume, then I'm willing to pay an extra premium for that service or repair on my own gear.


Time is money, the real & most basic dynamic commodity --if you've got the knowledge, skill, ability and most of all --TIME!!!-- and your own network of supply chain manufacturers to help you confidently purchase and work on your own personal gear, then great!


LA County Public Service, Port Police and USC/Wrigley Marine Science divers don't have time to shop for, service & repair their gear by parcel post or the Internet --especially critical gear like regs-- nor do they have time to go traipsing off to junket trips like DEMA. Hence the economics of the Local Dive Shop, of which Pacific Wilderness San Pedro has the most centralized mainland location for fast turn-around drop-in delivery & pick-up, as well as the best service/repair techs in all of LA County. And typically they have the best retail prices in town for us regular recreational divers, because of all these yearly high volume purchase/service order contracts with the Los Angeles County Gov't.

 

[Diving Dubai]

I can only speak for the model here. In the UAE getting stuff delivered via mail order can be a PITA, Because I'm a member of a club we always have people visiting their home country so it's possible to get your goodies shipped to their home address. I've done that with some small items I want and are prepared to wait for.

However I like to touch and feel what I'm buying so try to get it from my LDS - I have two I choose to go to now - both offering different brands - but then sometimes neither have what you want, so you're choice is to Mail order, get a friend to collect (or go home yourself) or make a different decision. Although not eco friendly - if you're buying high value gear most of us can claim back sales tax as we leave the country of origin - often this pays for the airfare

I also like to frequent my LDS as being a regular has it's rewards a case in point last week putting my gear together ready for the weekend, one of my regs was leaking air (out of tune. I skipped down to the shop and it was tweaked there and then on the spot for no charge, or as last year they called me up as someone was leaving the country and gave me first refusal on some tanks. They were O2 cleaned hydroed and serviced as part of the deal - so being a regular has its benefits.


As to clubs and compressors - it is a minefield Our club has bauer that can fill 5 tanks to 240 bar - the maintenance (done by our friendly LDS) isn't cheap, we also partial blend our own Nitrox and the techies have helium. We manage liability by users having to have a recognised training course (BSAC in our case) - if your not qualified someone else will normally fill for you if you help hump and dump, buy a beer etc - possibly the hardest thing is policing that tanks are in test date and that is a fine line between being a club and professional outfit.

Clubs can be a great social scene (Both of LDS shop owners frequent ours and put money over the bar) but they can also be hard work to run and sometimes its just easier to pay your money and go dive commercial boats

 

[Doc]

Interesting so far, but...

What "we" can not see is that "we" are decreasing in numbers and total spending.

The LDS began with "the basement model" in the 1960's.

Of course, back then, divers drove pick-up trucks. Not the $90k ones, the ones with ladders and tools in the back. The SUV crowd now has other diversions: video games, medical insurance, children, food, iPads, 70" TV's, motorcycles, implants for the GF, all that other competition for the discretionary dollar.

We will be going underground, returning to our roots. (underground basements and root cellars)

 

[DivemasterDennis]

On line sales have impacted every aspect of retail. However, my local shop still does a great business, for the following reasons:

A. WE TRAIN A LOT OF DIVERS FROM OPEN WATER THROUGH INSTRUCTOR, AND HAVE AN ON SITE WARM SALT WATER POOL
B. Most students purchase some, and some purchase a lot of gear from the shop
C. Students get a discount on purchases, making the pricing competitive.
D. Everything we sell can be serviced on site (except cameras). On site service and repair is a HUGE deal.
E. The shop offers good variety of price ranges in all equipment areas, but no junk.
F. The shop keeps a good inventory of gear, but will order you anything they don't have on hand.
G. As to most equipment, you can try it on, and try it out (on sight) before purchase.

It's all about service and convenience and a little about price. This shop, by the way, is in Lakewood, Colorado, a suburb of Denver.
DivemasterDennis