The Business of Diving - Training Data at the Retail Level
by Anne Ruiz

The Diving Equipment and Marketing Association (DEMA) recently published its statistical report on national SCUBA Market and Dive Training. The DEMA data shows that scuba retailers averaged 198 certifications1997.  Entry level certifications accounted for 135 of the 198 total. Considering the many continuing education certifications available from various agencies, one might expect to see 500 plus continuing education certifications instead of the 54 listed in Table I.

Table I
Certification Average Number Issued Per Retailer
Entry-Level 135
Continuing Education 54
Leadership/Instructor 9
Total 198

Data from distribution channels in Table II below indicates that resort dive shops issued the highest average number of entry-level, continuing education and leadership certifications.   No channel certified even half their number of entry level divers as continuing education divers.

Table II
Certification  Entry-Level  Continuing Education  Leadership/Instructor Total
Diving Only 129 57 9 195
Diving (Resort) 158 60 10 228
Water Sports 157 44 8 209
Sporting Goods 97 37 5 139
Diving/Skiing  87 33 4 124

Table III shows the average number of certifications retailers issued in each region. Compared to their peers in other regions, western retailers issued a higher average number of entry-level certificates. However, western retailers were less successful in extending their market with continuing education.  Retailers in the Rockies issued more continuing education certificates than any other region.

Table III
Certification Entry-Level Continuing Education Leadership/Instructor
Northeast  122 40 7
South 123 57 7
North Central 109 52 10
Rockies 135 77 10
West 176 46 9

Introductory store sponsored scuba experiences, as documented in Table IV, demonstrate that the West is using the I Tried Scuba, Scuba initiation program type of experience almost twice as often as any other region.  The experience program use in the Western region may correlate with the higher number of entry level certifications in this region.

Table IV
Region Average Number of Introductory Scuba Experiences Per Retailer
Northeast 37
South 28
North Central 69
Rockies 53
West 122
All Retailers 63

The data presented is retailer based, and dated.  However, the numbers may still provide a valid starting point to look at our own programs and make some decisions about our own business plans.

Table I documents that all retailers certified only an average of 54 divers in some form of continuing education.  California Divers, with whom this writer instructs, has found that the most critical components in offering continuing diving education are first, to schedule the classes and second, to promote them during the open water course. YMCA SCUBA instructors are providing divers with the very best available in Open Water training.  However, from a business perspective, is this training  enough?  Is the job done?  Often, dive instructors provide a terrific experience at the Open Water level and then turn divers loose with the admonition to "Dive! Dive! Dive!" The alternative, for these Open Water graduates to gain diving experience, is to join a club or dive with an established group of diving friends. In these settings, students are unlikely to be exposed to advance training which only an instructor can provide, such as SLAM, Y-MED, and Nitrox. Further, they may be presented with diving scenarios in which they may lack the judgment or experience to handle. A disservice is done, if no vehicle is provided for divers to obtain that experience.

Even more so, the instructors may be turning away the most profitable segment of the business. Without question, the Open Water Class is the hardest, most time consuming class, with the lowest profit margin per hours of instruction. Most continuing education courses involve less instruction time, and thereby have a higher profit margin then the Open Water class. If the instructor fails to offer and promote continuing education, the students may never take a specialty course, or may take the course from another instructor. A high percentage of students should continue their advance training with the same instructor if, they had fun during their Open Water class, and they feel well trained.

Table II provides some food for thought in program design. The popularity of what used to be called "Resort Certifications," is due to the fact that some potential students can dedicate only vacations or weekends for SCUBA instruction. Instructors with California Divers, have responded to the demands of the "accelerated class" market as follows.  In addition to the standard four-week class that meets twice a week, a "weekend" class was added.  This class is held on the third weekend of the four week class, and meets Thursday and Friday night, and during the day on Saturday and Sunday.  On the fourth weekend, both classes join for the open water training. No performance delta has been found between the two groups.  There are times students from the four-week class attend the weekend sessions on the third week.  Weekend class participants may, in the fourth week, join the weekday classes for additional skills training.  The major difference between these classes is that the weekend class student must have read the entire student manual and completed all assigned homework, before the start of class on Thursday night. Those not prepared are referred to the next session. Another format which also works well, is instructing the class on two Saturday and Sunday weekends, and taking the students on open water training on the third weekend. Regardless of the combination of weekday and weekend classes taught, the student should be receiving no less then 12 hours of class room and 12 hours of pool instruction, plus the weekend of open water training for a total of no less the 32 hours of Open Water instruction.

On the same weekend of the open water class, a second and separate class is scheduled for snorkeling. While one Instructor with Assistants Instructors, conducts the Open Water class, another Instructor, with A.I.’s, conducts a snorkeling class. The community center loves the snorkeling classes as an additional aquatics activity offered to the general public.  Parents sometimes reserve this two-hour snorkeling event as a birthday party for their child and friends. California Divers has had as many as 25 snorkelers on one Saturday.  Snorkelers 12 years old and older are potential candidates for the "I Tried SCUBA" session two weeks later. We schedule an "I Tried Scuba" monthly during the second week of the four week open water class.  Again, one Instructor, with A.I.’s, attends to the Open Water class, while a second Instructor, with A.I.’s, conducts the separate session for "I Tried SCUBA."  During the "I Tried Scuba," the participants see an Open Water class in progress. The snorkeling and "I Tried Scuba" sessions result in Open Water enrollments, and the deliberate promotion of continual education during the Open Water courses produces predictable results over time.

Different areas of the country provide varied opportunities.  A look at the data in the tables above may provide you with some insight as to what you are doing right.  While maintaining the YMCA Mission foremost in mind, you might also seek for ways to produce better divers, maximize your time, increase good will with your facility partners, have more fun and make more money.
-------------------
Bio Info
Anne Ruiz, with her husband Jesús is a partner in California Divers, the YMCA SCUBA Co-Coordinator for California and an Instructor Trainer for YMCA SCUBA.  She was certified as a YMCA Open Water Diver 1980 and as a YMCA SCUBA Instructor in 1995.  Anne is an independent instructor for the City of San Jose’s Parks and Recreation Department, and a volunteer diver with the Monterey Bay Aquarium.