Deflation in the Scuba Market

[Wookie]

I'll let Walmart know that.



Yes, actually I do something along those lines. The skill set and experience I have to a very large extent sets the level of my pay. I could go to other companies in the industry and within a couple of years be at the same pay level I am now. If the company I work for felt they could realize any savings by laying me off tomorrow I don't doubt for a minute that they would do so, as I have seen them do it to other lines of business in the past.

In short, although I seek to earn as much as possible, my employer would like to pay me as little as possible.



What a bunch of absolute, unadulterated BS. Following this logic we would be paying $100,000+ for cars. Retail markups vary widely from industry to industry. Yes, there are 100% or higher markups in some industries like clothing. Other industries like retail gasoline sales have markups of less than 3%.

If you really think Wal-Mart is operating on short margins, you don't understand how Wal-mart works.

If your employer would really like to pay you as little as possible, you must be a glutton for punishment. Look around and find an employer who values what you bring to the company.

Again, if you think that retail gas stations work on a 3% margin, you don't understand the full story.

 

[jbird71]

No one disputes that LDS are important, and they need to be funded. But IMO building a business on inflated prices for gear is a mistake. The days of fat margins are gone for good, so businesses must adapt.

 

[wrybosome]

Shops can only compete with the internet by adding value to the equipment we buy from them.

I'm having the best year of my 8 in business. I jumped correctly.

Nice post, and interesting to hear from someone in the biz. Congrats on the year you're having, it's fantastic to hear someone say that lately.

The only thing I'd add is that of the three shops I deal with out here the two that used the Internet to their advantage are doing better than the third.

@rjp - you might be right, but if it took Rolex money to go dive a lot of us would stay on land. So all power to Halcyon et al but I'll stick with my Timex Ironman.

 

[RJP]

I'll let Walmart know that.

Walmart doesn't produce anything. And they know that. But I can double-check that on my next trip to Bentonville. They were my biggest customer for several years, and are currently the biggest customer of nearly every one of my clients. They are one of the few companies I've ever worked with who genuinely understand what business they are in.

Walmart is in the "transaction" business. They don't care what you buy, or how much you pay for it. Their model is essentially to make a tiny bit of money on each of a bazillion transactions. Their profit margin - how much they earn per transaction vs what it costs them to "produce" that transaction - would BLOW you away.

 

[wrybosome]

Their profit margin - how much they earn per transaction vs what it costs them to "produce" that transaction - would BLOW you away.

???

Curious minds want to know.

 

[yarik83]

I agree with the fact that many mountain bikers may be compelled to buy into 5000 dollar bikes. Heck my co-workers have just upgraded to 1200 dollar bikes. Me.. on the other hand.. yes I am riding dead last and I spend 50% more energy on our 4 hour biking outings but at least I am happy with the 400 dollar bike. Yes I could buy a new bike and upgrade all the things in it.. but I am a "Recreational biker" very much like I am a "recreational diver".. and as such I do not foresee myself buying a bike that costs more that what I have paid for mine. Same with scuba gear.. if mine breaks then yes I will replace it but I wont go out on a limb and buy a super duper system just because its sold on the market. I think what separates... well kind of correlates I guess... I think what correlates with less expensive mountain biking... is ... less expensive scuba diving. A lot more people would be a lot more compelled to get into the sport if it was cheaper.

 

[yarik83]

Here is some room for thought.
While I am single right now.. I am looking to start a family so I would hope that my future girlfriend/wife will want to get certified.. so thats expenses right there.

I also have 2 baby sisters who in 4 years will be ready to dive.. as well as my parents. I know for a fact that they will not be looking forward to spending all that cash so I foresee myself paying for their certifications. So considering they come down to florida several times per year it might be viable to purchase a set of gear for each instead of renting.

So... about 2 grand for my future better half and about 8 grand for my family. Now you can do the math and 10 grand is .... yes its 10 grand with today's prices.

Now I could of course purchase from my lds but I could probably shave off half the cost just by buying online. 5000 sounds a lot better than 10000.. so for recreational divers like myself.. cheaper diving is almost like a quest. Finding the holy grail of balancing out certification, gear and miscellaneous fees is what I seek.

 

[scubafanatic]

It is my impression that scuba diving is 'sold' as an exotic (read expensive, involving substantial travel expenses) activity, and witness DEMA, which is now mostly a 'travel' show (versus a scuba gear show) which is strong evidence of how the scuba powers-that-be perceive things. One can EASILY blow $ 3,000/person on a mid-grade Carribean 1-week liveaboard, ...............and $ 7000 - $ 8000/person on an average 1-week Galapagos liveaboard....how many 'quarry' dives (affordable) do you see DEMA/scuba industry promoting ? It's obvious the 'go-go/easy credit' years are WAY over, and we're having to sober up and 'get real' with respect to all the economic trends......the boom-bubble has popped and isn't returning...better get used to a new (and diminished reality).....and don't even get me started on the health of the oceans/reefs, most are in terminal decline (pollution/over-development/overfishing/global warming)...there's just less and less motivation to spend big $ to go diving with an ever diminishing payoff.

P.S. ...just found out a few days ago, quite by accident, that yet another scuba manufacturer has bit the dust...Deepoutdoors.....the body count continues.....

 

[teguhbs2000]

This is how I see it. It should not cost 8000 to get a family of 4 certified and to equip them into scuba gear. Thats 2000 per person... are you kidding me? Scuba sport needs to be cheap and affordable. Make cutbacks without jeopardizing safety. It is possible.. I know it is. It should not cost more than 500 per person to get a person certified and equip him with gear.

I am agree with those preposition about affordability, I am living in Indonesia, and here diving is quite affordable, even for the average Indonesian. 3 local open water dives only cost you at a modest USD 55, and even 9 dives in bunaken only set you back by USD 325 (stay in 4 star hotels). The flood of affordable Italian goods such as Mares and Cressi make diving here more affordable than ever, with a startup price for complete gear is as low as USD 550. Where does it come from ?, in my very subjective opinion is diving here is attract more people than ever due to its relative affordability. As for the safety itself, it is in the best interest to all parties involved to upheld this principle to the utmost for the sake of diving popularity here.

 

[svyper]

Sorry to ask, but where exactly can you get dive equipment for "deflated" prices (50% off ???) as a retail customer?
In my area I see that scuba shops have "specials" and sales more often (and I am sure haggling is easier nowadays), but overall prices are as high as ever.