For a long time, the dive shop industry revolved around an uncommon profit model where businesses offered certain services at a loss to focus on the real money maker: scuba gear sales.
In this model, both ends of the spectrum were extremely unbalanced; dive shops charged next to nothing for classes and certification while selling diving gear at a huge markup over retail. The internet changed how effective this type of sale can be.
What Is The Problem With The Previous Gear Sales Model?
The only reason elevating gear prices worked in the past is that consumers had few options for purchasing high-quality scuba gear. This equipment wasn’t readily available in mainstream stores. These days, people can order the equipment they want, with the specs they want, from shops around the country. This has reduced the outsized profit margins that dive shops enjoyed at one time.
How Profitable Can Gear Sales Be?
This trend doesn’t mean that selling gear isn’t lucrative for dive shop owners. In fact, scuba diving equipment can still be one of the main sources of revenue for a dive business. The global market for diving equipment isn’t going down; it’s increasing significantly.
In 2022, the U.S. market for diving equipment was approximately $1.1 billion, about 25% of the worldwide total. Experts predict that between 2022 and 2030, the global market will increase to $5.5 billion.
There is plenty of room for dive shops to take advantage of this global interest in diving equipment. While profit margins aren’t as crazy as they used to be, businesses can make up for it with more consistent gear sales thanks to e-commerce.
How Can A Dive Shop Sell Scuba Equipment Online?
Small business dive shop owners may feel intimidated by the idea of selling products online instead of in person, but the process isn’t as complex as many people imagine. With comprehensive dive shop POS software, much of the work is automatic. These cloud-based systems can help dive shop owners create fully functional e-commerce websites. With minimal setup time, equipment sellers get an online storefront with complete payment functionality, product images, pricing features, and other capabilities.
Of course, having an e-commerce website is only the first step. It’s also necessary to build a good reputation online and invest in advertising for search engines. Branding is important for winning clients, who may recommend a dive shop to friends, family members, and social media contacts.
Why Is Diving Equipment Sales Profitable?
Thanks to the global reach of the internet, businesses aren’t limited to selling diving equipment to local clients and tourists anymore. It’s possible to sell high-quality gear to people living anywhere in North America, Europe, As, the Pacific and many other regions.
The range of potential clients has grown as well:
- Tourists
- Recreational divers
- Pro divers and underwater videographers
- Offshore oil and gas professionals
- Infrastructure professionals
- Combat divers
This increased need for scuba diving gear allows for some specialization on the part of business owners. Some dive shops may choose to focus more on commercial and industrial services rather than tourism.
How Can Dive Shops Balance Gear Sales With Diving Instruction?
Every dive business needs to evaluate its available opportunities based on location, market, target audience, and other factors. For dive shops located in popular tourist destinations, such as Oahu, Cancun, Key Largo, or Puget Sound, it would probably be foolish to overlook the potential profits from guided tours and certification.
One thing is certain: it’s not healthy to continue with a loss-leader model anymore. Instead, every service offered needs to be able to stand on its own in terms of revenue. Otherwise, it’s practically a waste of time and energy.
Gone are the days of almost-free diving classes. Instead, certified diving instructors deserve to make a fair wage from their high-level training. Many dive shops offer add-ons to help boost revenue from these services, such as one-on-one classes or luxury tourism.
What Other Options Are Available For Increasing Revenue?
The diving industry has a niche audience, but that doesn’t mean businesses have to follow a template. Profitability often comes from expanding outside the mold. Dive shops need to provide services that stand out for their target clients. This can include a variety of tourism options, both underwater and above ground. Whatever businesses choose, including online gear sales is a smart move.
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