Why I will never own another dive business

The dive business is a low margin, capital intensive lifestyle industry. Whilst the experiences in life can be great, the social costs however can be enormous.

I chose to work in the recreational dive industry after completing a four year technical apprenticeship and working ten years in my technical area. I was due for a break after working on average eighty seven hours per week - the recreational dive industry suited my personal goals at the time.

I went travelling and gained employment as a divemaster, dive instructor and dive centre manager. When I returned home, I maintained employment in the dive industry. The pay wasn't great, the hours long but I was enjoying life again and I could afford to live a life of poverty. So who actually makes money out of the diving industry?

The certification agencies are rolling in money, they sell training materials, dive centre licencing, instructor trainer (course director) training courses, instructor evaluations, insurance, dive centre support materials, promotional materials There is even discussion of private equity firms buying into the larger certification agencies.

The dive equipment manufacturers are making huge profits, they support wholesalers, technical representatives, sales staff, logistical staff and a layer of management. I know this from personal experience, honesty and integrity don't rate highly in their vocabulary.

The dive equipment manufacturers and wholesalers strongly dictate terms to the retailers,with pricing policy, product lines, availability of inventory and refusal of service. Price fixing, cartels and non-competitive practices are outlawed yet dive equipment manufacturers engage in such illegal activity.

Dive centres can be profitable, they are however build on a foundation of low paid workers, internships, that is, paying money to work for free so you can graduate to the minimum wage and part time retail workers. The required capital investment requires an elaborate compressor system, hire equipment, learning materials, safety equipment and the requirement to meet ever increasing regulations.

Most fail, but if you get the formula right, you can buy yourself a great job in retail with some excellent benefits. You just try not to look too hard for a return on equity and a return on investment. I should have stuck with investing in engineering where the return on investment is much greater. 

The dive certification agencies dictate the terms that the dive centre operates, now, you would expect the retail outlets to hold the upper hand in negotiations with the agencies vying for their business, this is unfortunately far from the truth. Dive resorts fare even worse, minimal equipment sales, reduced dive courses with the major income being certified dives.