Imagine if you asked a yoga studio owner whether they’d rather receive $400 -$600 US one time, or get paid $100 – $200 US per month indefinitely? They’d probably choose the monthly option.
Though yoga and scuba are different activities, the point is – membership-based business models are a rarity in the dive industry, but they’re common (and very profitable) elsewhere. Here are just a few examples of popular membership and subscription-based plans:
- Amazon’s Subscribe and Save – makes recurring purchases automatic and less expensive
- Massage Envy and The Joint (chiropractic) offer monthly memberships – helping customers commit to physical wellness
- Workout studios (pilates, spin, yoga) commonly charge $100 – $200 US per month for unlimited classes.
Today’s consumers like the idea of subscribing to something that improves their lives -whether they use it or not. Consider this, half of people with a gym membership don’t go to the gym; yet they don’t stop paying – $58 US/mo on average.
A subscription-based scuba diving plan can be beneficial for your business and your divers. By offering a monthly membership that includes guided dives, air fills, gear rental, and special discounts, you can stabilize cash flow and help divers stay active.
When customers make a monthly investment in diving, they’ll become long-term customers, which can significantly lower your cost of doing business because the cost to bring in a new customer is five to twenty-five times higher than keeping an existing one. Not to mention, the longer divers stick around, the more likely they are to buy gear and take trips.
Here are a few examples of subscription-based business models used by PADI® dive shops in different locations.
Fifth Point Diving
Store owner and PADI Course Director Nic Emery launched Fifth Point Diving’s monthly subscription plan more than a year ago. After a slow start, it’s taken off like an inflated DSMB.
For £35.00 per month, divers receive:
- 2 days FREE Equipment rental (RRP £120.00)
- 2 days FREE guiding (RRP £60.00)
- 4 FREE pool practice sessions (RRP £40.00)
- 10 percent off training
- 10 percent off retail
- Priority booking on all dives, environmental activities, events and trips
- A welcome pack including a t-shirt, metal straws, and other goodies
- An invite to a members-only Facebook group with advice, mentoring and activities
“Our subscription diving program is aimed at keeping new divers in the water,” Nic explained. “We wanted to make their kit rental as cheap as possible and encourage them to go out with a Divemaster rather than on their own.”
“I knew I had to make it a significant value for money – after all, they just dropped a massive amount on their courses. Altogether the plan includes £220+ worth of benefits for £35.00 per month,” said Nic. “The going rate for daily kit hire around here is £60.00, and we charge £30 for a guided dive with a divemaster, but members pay only £35 a month for two-day kit hire and two days of guiding a month. We make it super cheap for new divers to keep diving,”
“We also invite members to a Facebook group, that idea actually came from my gym. I pay monthly and get my classes, but the Facebook group offers support and banter,” said Nic. “Our divers love the Subscribe and Dive Facebook group. We even post ‘homework’ tasks for their pool practice sessions, things like how to launch a DSMB or do mask clear while hovering.”
Gigglin Marlin
The Houston, Texas-based dive shop also has a monthly plan, but a one-year commitment is required. For $19.95 US per month ($34.95 US per month for families), divers receive more than 17 benefits. Here is a short sample:
- Unlimited air fills – $6 value
- Tank rentals (2 per visit) – $16 value
- Free annual visual tank inspections – $37.50 value
- Free DAN Membership (Divers Alert Network) – $35 value
- Discounts on gear and accessories (1 set/yr) – $600 value
- 50 percent off all rental gear (includes cameras & dry suits) – $200 value
- Early bird dive trip discounts for members – Up to $75 value
Jack’s Diving Locker
Local residents on The Big Island of Hawai’i can join Jack’s Kama’aina Dive Club. The annual membership dues are $50 US for individuals and they also offer family rates. Benefits include::
- Discounted boat trips (usually two per month)
- Half price stand-by rate for regularly scheduled charters
- 10 air fill card for $10
- Holiday sales event VIP party invitation
- 10 percent off most regularly-priced merchandise
- A free t-shirt or $20 credit toward any shop logo apparel
Ready to Try a Subscription-Based Business Model?
Sometimes businesses have to evolve to excel; for example. YouTube started as an online dating platform and Twitter was originally a podcast distribution channel. If you’re ready to try a new business model for your dive shop, here are a few tips:
Survey recently-certified divers and long-term active customers – create a list of potential benefits and ask which ones they value most. The number one reason membership plans fail is because they don’t create enough value for the customer.
Remember: people buy on emotion, but justify with logic – include the value of each benefit (as shown above) and create a strong value proposition. Imagine the conversation your customer may have with their spouse to justify the extra monthly expense. For example, “Instead of paying $50 per weekend for rental gear, I’ll only pay $50 per month and save $150 bucks.”
Equipment rentals – make sure you have enough equipment (and storage space) to offer equipment rentals as part of your membership. Also, if your shop is closed more than one day a week or has limited hours, you may get some push back from customers who want to use their benefit but cannot because the shop isn’t open.
Make it more than just discounted gear – discounts will compel people to sign up, but the benefits below will help them stay engaged and loyal to your business:
- Schedule group activities (guided dives, special events) before you launch.
- Create a Facebook Group where members can interact
- Think of ways to build camaraderie such as “most improved diver award” or holiday gift exchange
Questions? Contact your PADI Regional Manager or Regional Training Consultant.
