ams511
Contributor
Everybody knows skiing starts on the bunny hill, but you're probably going to have to do a lot of it or take some more lessons to get to the blue or black slopes. Nobody seems to think that diving is similar.
I think you hit the nail on the head. People that want to get better at a sport will pay to take more lessons. If they are happy on the bunny slope then why take lessons? If a person is happy swimming around at 40 feet looking at fish then why do they need to take an intro to tech class? You may be able to sell them on an advanced course or Fish ID but that is about it.
---------- Post added April 3rd, 2015 at 05:42 PM ----------
Res ipsa loquitur. If scuba diving/training were price-elastic all those $99 OW course shops would have lines out the door and their owners would be driving Porsches. The vast majority of the population will never take up diving whether the course costs $399, $199, $99 or even $1.99. Which is to say, the overall variance in overall demand does not vary uniformly with change in price. That's the very definition of price inelastic.
Giving a Latin catch-phrase is not evidence. So in other words you have no empirical, experimental, or analytical evidence to back up your assertions. What speaks for itself it that the if $99 pricing is growing the dive industry must see some benefit in it. Also price elasticity has nothing to do with variance. Simply put it is the change in quantity divided by the change in price. If the absolute value is greater than 1, it is called price-elastic, if less than 1 price-inelastic. Price inelastic does not mean that consumers will purchase the same about regardless of price.
While I do agree that out of the population as a whole there is only a small subset that may be interested in diving; however, that is not to say that within that subset consumers are not price sensitive. What you are suggesting is violates the law of demand. Also if you think diving is perfectly inelastic then why did you not draw the demand curve as vertical line? That is the graphic representation of what you are saying.
---------- Post added April 3rd, 2015 at 05:46 PM ----------
I'll let Milton Friedman know. I'm sure he'll return his Nobel prize.
First, Milton Friedman died close to a decade ago. So unless you can add "ghost whisperer" to you other accomplishments you cannot talk to him. Second, his work was mostly in the field of monetary policy so I see no relevance to this discussion. Unless you claim an LDS can affect the money supply. If he has a paper on point please let me know and I will look it up. I have access to most periodical databases.
---------- Post added April 3rd, 2015 at 06:00 PM ----------
Any local market or business is subject to the same, well-characterized market forces as the overall market. The slopes of any of the curves may change... but the shape of the curves and the overall price/demand/supply/consumption dynamic are the same in any marketplace. (At least any market that isn't subject to governmental price-controls or production subsidies.
You need to go back to basic economics. The market demand curve us the aggregation of the individual demand curves. The shape of the curves need not be the same because the determinants of demand and market structure could be different. If there is only one dive shop in town then that person has a virtual monopoly on scuba, if there are 20 shops he doesn't. In which market do you think the dive shop has more control over price? You need to look at the determinants of demand, if the choice is between skiing and scuba which would someone in Miami be more likely to pick? Someone in Vale?
---------- Post added April 3rd, 2015 at 06:02 PM ----------
Obviously since dives aren't reported and C-cards don't expire it's not easy from any machine-readable transactional data. Instead, best that can be done is a large quant survey that can be fairly reliably projected. Survey, say 24,000 people (as in the last one that was done) who were certified at one point and find out what they've done since getting certified.
So what are the reasons people drop out of diving?