This is an interesting thread as a new diver and an ecommerce professional. Retail in the US is going strong, but consumer habits are changing. Businesses must diversify and brick and mortars must understand that if they cannot offer a truly valuable in-person experience as well as a cost comparable to online shops, they are going to get left in the dust. There ARE great businesses that sustain brick and mortar as well as online shops, and it seems like the diving industry should be doing more of that. Starting a robust ecommerce biz is not necessarily a fun endeavor for someone at a mom and pop shop, and not everyone will stay in business, but who's to say that it can't be done? Business owners need to start thinking creatively and offer something that no one else does beyond simply discount pricing.
Many older "millennials" like myself (I'm 31) who should be the target demographic and should be gaining some disposable income and putting some money into long term hobbies like scuba pay hundreds of dollars in student loans every month on top of other expenses. I don't have the disposable income that my parents did at my age, when my dad started diving through our hometown dive shop. A $1000 gear package is simply not something I can afford since I also have to budget for opportunities to use it. I have a steady salaried job, and even though I have no kids, live with housemates, don't have cable TV, rent is SO HIGH in NYC, and storage space is low. Plus, at this point, what's the advantage of me owning my own equipment? If I can only afford to pay for one ultra-low-budget vacation OR a set of gear in a single year, I'm opting for a cheap plane ticket to a backpacker-friendly place somewhere warm where the dive shop will rent me all the gear and take me on a guided dive with a group of other young travelers so I can have fun and gain experience in a safe and educational environment....all of which I can arrange over the internet. Sure, I could shell out for equipment at the LDS and then shell out a few hundred to go on some local charter dives in the NYC area, and maybe I will some day, but then I'd have no vacation budget.
Honestly -- are there dive shops and locales in the continental US that offer a comparable experience and culture to something like Utila or Koh Tao? Where you can show up with no car, no gear, no $200/night hotel room, and stay in a modest hostel on site and watch a sunset from the dive shop bar/restaurant with other young travelers? I'm not even a big partier, but I so thoroughly enjoyed those experiences and their openness to beginners, and haven't given much serious thought to diving in Florida or North Carolina for my next trip, despite their relative accessibility, because I don't associate it with the same kind of travel that I am drawn to, especially as a solo traveler (my friends aren't divers). I know lot of the "cowboys" rag on the "dive factory" nature of the backpacker dive resorts, but those threads are full of people talking about how over commercialized the dive industry has gotten. It seems like there is a customer base ready and waiting to be courted. (I could be totally ignorant about the existing dive culture in Florida, California, NC, etc, so please forgive and correct me if I am wrong)
Edited to add: I'd love to be an adventurous diver one day, with more of a need to frequent my LDS, and I agree that OWS and AOW certs are not thorough prep compared to experience, but without their relative affordability and accessibility, I wouldn't be doing any diving at all.