Annual Activity Report 2009

Diving Equipment and Marketing Association
DEMA
Annual Activity Report 2009
DEMA 2009 Annual Activity Report
Table of Contents
What is DEMA?
2009 Board of Directors and 2009 Membership Categories
2009 Board of Directors contact list
Committees and Their Accomplishments
• Committees and chairs
• Manufacturer’s
• Promotions
• Show Committee
• Legislative
Research Programs
2
What is DEMA?
Description: Worldwide Trade Association for the Recreational Diving and Snorkeling
Industries. 1,300 member companies.
Mission: To Promote sustainable growth in recreational diving and snorkeling while
protecting the environment.
Goals:
1. To produce an annual trade event for the industry which serves the needs of its
stakeholders and produces a successful financial outcome for the association.
2. To engage in marketing programs which promote the industry, create new customers,
drive business into retail stores and resorts and promote diver retention.
3. To monitor potential legislation which could adversely affect the industry.
4. To engage in marketing research programs which will:
a. Define the universe of divers
b. Determine the rate of erosion amongst existing divers
c. Determine the number of entry level certifications which take place in
the United States and Caribbean each year
d. Provide retail audit information that is made self-liquidating through
annual subscriptions.
5. To conserve and protect natural aquatic resources.
Board of Directors: 10 individuals that represent the five diving stakeholder groups, two
representatives from each regular stakeholder group;
A-1 Manufacturers
A-2 Training Organizations
A-3 Media, Associations and others
A-4 Retail Dive Stores
A-5 Dive Travel Destinations and Vessels
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2009 DEMA Board of Directors
DEMA’s Board of Directors is made up of volunteers that devote an enormous amount of
their own time to helping promote and grow the Industry. Their accomplishments during
the year are many and few realize the time and effort that these devoted individuals put
forth.
Representing the diverse needs of all five stakeholder groups is not an easy job. In some
cases the viewpoints are in direct conflict and it takes much work to find common
ground. In other cases the difficulties are easier to overcome. In all cases, the decisions
are well-thought out and well-grounded.
The Diving Industry’s Stakeholder groups include:
•
•
•
•
•
A-1 – Manufacturers/Distributors of Dive Equipment and Sales Reps
A-2 - Diver Certification and Training Agencies
A-3 - Publishing, Media, Dive Industry Consulting, Associations & Non-Retail
Service Providers
A-4 – Dive Retailers
A-5 – Dive Travel and Resorts
DEMA is pleased to have the following individuals on the DEMA Board of Directors
representing the Diving Industry:
Charlie Bush–A-1 – Vice President
Stephen Ashmore – A-1
Al Hornsby – A-2 – President
Dan Orr – A-2 –Secretary
Ty Sawyer – A-3
Neal Watson – A-3
Jim Byrem – A-4
Dave Riscinti - A-4 –Treasurer
Keith Sahm – A-5 – Vice President
Tim Webb – A-5
Board terms are three years. DEMA will next conduct Board elections beginning in
December 2010.
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DEMA’s 2009 Board of Directors – Contact List
Al Hornsby, President
Professional Association of Diving Instructors
[email protected]
Jim Byrem, Vice President
Ocean Concepts Scuba
[email protected]
Keith Sahm, Vice President
Sunset House
[email protected]
Dave Riscinti, Treasurer
Blue Water Divers
[email protected]
Dan Orr, Secretary
Divers Alert Network
[email protected]
Charlie Bush
Cramer Decker/Sherwood Scuba
[email protected]
Stephen Ashmore
Tabata USA (TUSA)
[email protected]
Ty Sawyer
Sport Diver Magazine
[email protected]
Neal Watson
Ocean Fest/Neal Watson Productions
[email protected]
Tim Webb
Caradonna Dive Adventures
[email protected]
5
Committees for 2009
DEMA Committees are an opportunity for volunteers to participate in the activities of the
Association and to have an impact on the effectiveness of DEMA. Committees are
generally made up of Board members and may include other volunteers from the diving
industry. They are advisory to the Board of Directors and DEMA Staff, and bring a
wealth of experience to the Association.
In 2009 there are a number of standing committees helping to provide input to the Board
of Directors and Staff of the Association. Having opinions and insight from the diving
community is critical, and the learning curve works both ways; many volunteers learn to
understand the inner workings of a large non-profit trade association, including the
nuances of providing the best for all five stakeholder groups simultaneously.
The following standing committees have been in operation throughout 2009:
•
•
•
•
•
Finance Committee
Manufacturer’s Committee
Promotion (Retention/Acquisition) Committee
Show Committee
Legislative Committee
2009 has been a challenging year for the Diving Industry, and these committees and their
volunteers have been instrumental in staying the course of DEMA’s Mission;
Finance Committee: David Riscinti, Chair
Manufacturer’s Committee: Charlie Bush, Chair
Promotions Committee: Keith Sahm, Chair
Show Committee: Neal Watson, Chair
Legislative Committee: Jim Byrem, Chair
In addition, ad hoc committees engaged in activities during 2009:
Outreach, Chair:
Industry Partnership, Chair:
International Growth, Chair:
Alternative Media, Chair:
Ty Sawyer
Tim Webb
Neal Watson
Ty Sawyer
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Finance Committee – Chair Dave Riscinti (Board Treasurer)
The Finance Committee provides oversight to all budgetary activities of the Association,
approves the budget for the fiscal year, and reviews all Association financial transactions.
DEMA’s financial standards are developed using GAAP Standards. In addition to
following these high standards, DEMA also retains the services of an outside professional
accounting firm to conduct independent audits of all financial activities of the
Association, as well as periodic evaluations of financial data. The association’s
financials are posted on www.dema.org for member review.
Giving Back to the Industry
One of the most important objectives of the Association is the opportunity to place
money back into the diving industry for promotional purposes. Since January 2003,
DEMA has carefully placed money into successful promotions that were then evaluated
for their return on the investment.
For example, in 2008 and 2009 to date, DEMA’s Be A Diver Pool Tour (formerly the
Scuba Tour) cost about $200,000 but introduced scuba diving to thousands of people.
The value of the media exposure alone, generated by the Be A Diver Pool returned to the
members of the Association the following on the investment:
Media Category
Broadcast Exposure
Print
On line
TOTAL
Media Impressions*
10,755,331
7,642,783
252,657,282
271,055,396
Dollar Value*
$2,624,202
$51,700
Not audited
$2,675,902 + on line
*Media impressions and dollar value are provided to DEMA through a third party audit.
From a financial analysis standpoint, the return on investment of association dollars for
the Be A Diver Pool Tour is almost 7 times the money spent, exposing diving to more
than a quarter of a billion people.
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Manufacturer’s Committee – Chair: Charlie Bush
The Manufacturer’s Committee represents all member manufacturers. Representatives
on the Manufacturer’s Committee come from the DEMA Board and can also include
non-Board members.
The Manufacturer’s Committee monitors the Manufacturer’s Fund, which was
established in 1994 when DEMA was re-organized to include all stakeholders in the
Diving Industry. The Fund is composed of 5% of the gross receipts from DEMA Show
each year and is used at the discretion of the manufacturers to promote recreational
diving.
The Manufacturer’s Fund has supported many different programs, investing almost
$175,000 in promotions for the industry during 2009. Programs supported in 2009
include:
•
•
•
•
•
•
•
Be A Diver Pool Tour Funding
Manufacturer’s Econometric Business Index (MEBI)
Be a Diver Marketing Campaign
Youth Career Program Funding
Ships 2 Reefs Funding
PSYTE Funding/Retail Retention
CORE Program Funding
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Growing the Industry - Diver Acquisition and Retention
The Be A Diver Campaign
In one of the toughest economies in recreational diving’s short history DEMA continues
to keep the Be A Diver campaign and recreational diving visible to the public through
outreach programs that assist the diving retailer, assistance with developing a retail
store’s optimum advertising and promotional mix, and free-to-member materials that
provide easy solutions to cost cutting while advertising.
DEMA launched the Be A Diver campaign in April 2008. It is perhaps the largest
customer acquisition campaign in DEMA’s history, and is designed to drive potential
consumers to the BeADiver.com website, where ALL retailers (DEMA members or not)
in the US are listed, and the customer can search for a store by zip code. DEMA
members are given preferential listings, and their website URL, phone number and
distance from the zip are provided to consumers in alpha order under the Retail Store
Locator. Non members receive an alpha listing as well, below the DEMA members store
listing.
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In 2009 DEMA introduced the Matching Funds, Co-Op Advertising Program. This
program matched television advertising dollars supplied by DEMA member retailers, or
matched combined advertising funds put up by any combination of DEMA member
retailers manufacturers, training agencies and destinations, for the purpose of conducting
television advertising using the Be A Diver TV commercial.
The program impacted more than 60 retail dive centers around the US in 2009, and in
total DEMA has provided funding that reached millions of potential consumers,
providing almost $200,000 in matching advertising funds. Combined with membersupplied funds, advertising campaigns saw about $400,000 in total television ads run
regionally through member dive retailers, using both cable and broadcast TV.
In addition to the :30 second television commercial, which is designed so that the last :07
seconds can be used to point to the retail store’s contact information, DEMA has
provided members with professionally designed advertising materials; radio
commercials, print ad templates in various sizes, poster templates, yellow pages ads, web
banners and much more.
To supplement the effort, DEMA has also provided assistance and information to help
retail stores and others make the most of their advertising dollars using the Be A Diver
materials. Several “How To” Guides are available to any interested diving professional,
including a Regional Cable Television Advertising Buying Guide, Direct Mail Guide, and
Be A Diver Promotional Guide (which includes a catalog of available advertising
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materials). In addition, Dave Reidenbach (aka “Big Wave Dave”) has been trained in the
use of several database tools that help member retailers locate customers, and map the
area around the retail store for the best customer potential. The data from Dave’s
individual store analysis can save money by avoiding non-productive target
neighborhoods, and can even be used to plan the best areas for cable TV and radio ad
coverage.
Clever retailers realize that the Be A Diver ad campaign drives consumers to the
BeADiver.com Retail Locator, but that the member retailer’s website must have a “call to
action” to get the customer to act, once the store is selected from the listing on Be A
Diver.com. The first place to which you should turn for help with the call to action is
your training organization, manufacturer and other vendors and partners that often have
first-class materials to help promote your diving and your business.
Co-op Ads for 2010
DEMA recognizes the extreme value of having DEMA members participate in the Be A
Diver campaign. In fact, without that additional participation, the Be A Diver campaign
cannot possibly touch enough of YOUR customers. The DEMA Board recognizes that
the best return on the association members’ funds is to use them for television and radio
advertising.
Pending budget approval to do so by the Board, the opportunity to receive matching
funds is available to all DEMA member segments, when any segment uses the funds to
purchase television or radio air time for advertising as part of a retailer support
campaign. For example, manufacturers may contribute money toward the media
purchase for their retail dealers; training organizations may contribute money for their
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retailer members; destinations may contribute money for retailers that sell their
destination; and money may be combined by local retailer associations to purchase air
time in a media buy that covers an appropriate marketing area for all participating retail
stores. For purposes of the co-op program, DEMA defines “retail dive store” as DEMA
member retailers which meet all of the following criteria:
1. Teach scuba diving
2. Sell scuba diving equipment
3. Provide diving equipment service
4. Have a retail store front
5. Have regular retail business hours
6. Be zoned for business where such business zoning is required
7. Provide air fills
8. Provide DEMA with a copy of the government-issued business license which permits
the business to operate
Like any good promotional campaign, to be successful, all of the promotional materials
in the Be A Diver campaign must be used together. These sophisticated components
allow DEMA member retailers to produce a comprehensive “promotional mix” that
includes direct mail, print ads for newspaper, local/regional magazines, website banners,
and even movie theater promotions. All of the Be A Diver components are available for
DEMA members to use FREE OF CHARGE to help capture the attention of the target
customer.
The promotional mix should also include more than just advertising. The components of
a good promotional mix include:
•
•
•
•
Advertising – such as radio, television and print ads through various media.
Sales Promotions – Sales promotions involve the use of media and non-media
pressure applied for a pre-determined, limited period of time at the consumer,
with the objective of stimulating trial or increasing consumer demand, or to
improve product visibility and availability.
Publicity (PR) – The classic definition of “Publicity” or “PR” states that it is nonpaid-for communications of information about the company or product, generally
in some media form.” While the actual appearance of the product or service in
the media may be considered “free,” most publicity activities do have a cost
associated with them. PR firms charge for follow up, “stunts” cost money to
create, and even writing press releases can have a cost. Still, these can be very
effective when used in conjunction with other promotional activities and getting
the attention of the media can provide a store with far more visibility than not
having it. The Be A Diver Pool is a form of publicity.
Personal Selling – Diving is a relationship business, and not withstanding the
sales that take place on the web, getting people to come to a store and purchase
equipment or learn to dive is still largely dependent on the face-to-face selling
skills employed by dive store staff. All employees should be versed in selling
techniques and willing to participate in the sales process. Given that more than
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60% of all divers look to their diving instructor for guidance on what they should
buy, this is especially important for the instructional staff.
Television Advertising:
For television advertising purchases, it is HIGHLY RECOMMENDED that the media
purchase involve no more than two or three television networks or channels, and that the
purchase involve cable television to attain the greatest concentration of commercial runs
for the money, while reaching the highest concentration of viewers and potential
customers. It is also HIGHLY RECOMMENDED that the media buy be designed using
the data gathered by DEMA’s Media Research Inc (MRI) reports regarding the target
audience.
The retailer should customize the basic Be A Diver® television commercial using their
own appropriate logo and website address.
Radio Advertising:
For radio advertising purchases, it is HIGHLY RECOMMENDED that the media
purchase involve no more than two or three radio stations to prevent “dilution” of the
funds needed to effectively reach the target customer. It is also HIGHLY
RECOMMENDED that the media buy be designed using the data gathered by DEMA’s
Media Research Inc (MRI) reports regarding the target audience.
In addition to the above, the program particulars are as follows:
•
•
•
The media purchase (radio, television or both) must involve one or more DEMA
member retail stores. Additional DEMA members may also match funds to
increase the number of participants.
Pending the approved budget to do so, DEMA will match the media purchase
made up to $5,000 per DEMA member retail store, per calendar year, with a
maximum of $25,000 in matching funds available per media buy.
Participating stores must provide DEMA with a report within 30 days of
completion of the co-op advertising program, to include:
o Testimonial
o Metrics from Google Analytics for website traffic
o For broadcast TV, dates, times and channels of commercial runs, and
where possible, programming description
o For cable TV, dayparts and networks for all commercial runs
o For radio, dates, times and stations of commercial runs, and where
possible, programming description
Retailers should customize the basic Be A Diver® radio commercial using the appropriate
store name and website address.
Radio Example:
One DEMA-member retailer wishes to take part in a co-op ad campaign using local radio
and the Be A Diver commercial and materials. The retailer has $800 to spend on the
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media purchase. In order to increase the number of commercial airings over the desired
time, the retailer wishes to participate with DEMA’s co-op matching funds advertising
program.
In addition to the single retailer, another DEMA member business can be involved so as
to qualify for the co-op ad dollars from DEMA. In this case the retailer contacts a Hawaii
resort to create the following media buy budget:
Retailer Destination Total Budget -
$800
$800
$1,600
In this instance DEMA will match the total member media buy budget for 1,600 with an
additional $1,600. The total media buy budget is now $3,200.
Television Example 1:
One DEMA-member retailer wishes to take part in a co-op ad campaign using cable
television and the Be A Diver commercial and materials. The retailer has $1,000 to
spend on the media purchase. In order to increase the number of commercial airings over
the desired time, the retailer wishes to participate with DEMA’s co-op matching funds
advertising program.
In addition to the single retailer, another DEMA member business can be involved so as
to qualify for the co-op ad dollars from DEMA. In this case the retailer contacts a
destination in the Caribbean to create the following media buy budget:
One retailer Destination Total Budget -
$1,000
$2,000
$3,000
In this instance DEMA will match the total member media buy budget for 3,000 with an
additional $3,000. The total media buy budget is now $6,000.
DEMA members retailers are all eligible to participate with this program. The dates
during which DEMA will help fund the co-op opportunity are flexible, recognizing that
each area of the country has different needs.
During 2009, additional Be A Diver full-page ads appeared in Latitudes Magazine
(American Eagle Airlines), with a per issue circulation of 400,000, running in January,
February, March and April.
Editorial Exposure for Diving
DEMA members also benefit through a media exposure program. DEMA has arranged
to train different journalists from publications, blogs and other media that are seen/read
by the target audience, creating opportunities for additional diving exposure. With the
help of member retailers and diving destinations, DEMA has made sure that these
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journalists have a positive training and diving experience, and are willing to write about
their experiences in their publications. These articles will result in millions of consumers
receiving exposure to diving through the editorial pages of these publications.
BeADiver.com – DEMA’s Customer Landing Website
In 2008 DEMA’s campaign ads appeared in select print publications and a variety of
cable television networks known to be seen by the target audience. All ads generated
from DEMA have one thing in common – they are intended to drive the intended
audience to www.BeADiver.com. Combined with member use of the logo, the Be A
Diver pool, and other sources, the website remains active as a means of driving potential
customers to retail dive stores.
The Be A Diver website lists all retailer stores in the US, with DEMA member stores
being given additional prominence on the website. DEMA member stores receive a
DEMA logo as well as being listed first in alpha order in the search engine.
While DEMA did continue advertising in the early months of 2009 through airline
magazines, the DEMA Board determined that the money would be best used as co-op
advertising funds that impacted the retailer directly, and on a regional/local level.
DEMA Members Using the Be A Diver Campaign
DEMA members continue to use the Be A Diver logo and URL on their own promotional
materials. This helps to keep the logo visible and in the case of destinations and resorts,
encourages non-divers to consider learning to dive as part of (or even prior to) their resort
experience.
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Retail Marketing Assistance
One of the most exciting benefits of the Be A Diver campaign for DEMA members will
continue; DEMA is providing access to a “geo-demographic” program that helps retailers
find more potential customers that match the profile of the most active diving customers
near by to their stores. “Big Wave” Dave Reidenbach has already worked directly with
more than 60 DEMA member stores to help them use this program and “map” the
locations of their customers.
There are two primary advantages to using this program; it provides an understanding of
where the customers are generally located, making it possible to focus television and
radio marketing efforts; and it also makes it possible to purchase the addresses of these
potential customers using zip codes and household data to determine where to find the
greatest concentrations of potential customers.
DEMA has also negotiated a very inexpensive rate through the Association for acquiring
potential customer mailing lists with a high (greater than 90%) accuracy rate, which is
targeted and more affordable than most mailing list vendors.
As noted in the Promotions Committee Report for 2009, mailing lists are typically priced
per thousand names (CPM), and in a typical mailing list house stores will pay anywhere
from $0.12 to $0.25 or more per name, per use ($120 - $250 per thousand), depending on
the number of filters chosen. DEMA has arranged for multiple uses over 12 months of
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the target customer mailing starting at $30 per thousand* (a 75% discount on the mailing
lists). (*price subject to change without notification).
By traveling to several of the consumer dive shows, working through phone and
computer, and visiting stores on site, DEMA and Big Wave Dave have delivered
hundreds of thousands of names and addresses to which retailers could promote.
If purchased from other sources, the data provided by this sophisticated customer location
system has a value of up to $7,000, but is being made available absolutely free to DEMA
members!
Pitney Bowes MapInfo®
PSYTE US Advantage Profile Report
60 mile Ring
Atlanta, GA (DMA-9)
September, 2008
PSYTE Code
Cluster Name
HH Count in
region
% of total
HH in
region
Base Count of
Cluster in US
% of Total
US HH
Regional
Penetration
of Total US
Cluster HH
Index
Low Density Suburban 1
LDS1_03
Nouveau Manors
78,853
3.86%
958,236
0.83%
8.23%
463.81
LDS1_09
Suburban Wave
184,387
9.03%
2,337,607
2.03%
7.89%
444.59
LDS1_22
Kids, Dogs, Vans
174,958
8.57%
2,525,670
2.19%
6.93%
390.44
LDS1_06
Balancing Acts
68,650
3.36%
1,698,427
1.48%
4.04%
227.82
LDS1_02
Executive Domain
92,875
4.55%
2,471,005
2.15%
3.76%
211.85
LDS1_13
Sierra Snuggle
50,516
2.47%
2,775,999
2.41%
1.82%
102.57
LDS1_07
Equestrian Heights
16,660
0.82%
1,368,272
1.19%
1.22%
68.63
LDS1_01
Tuxedo Trails
7,445
0.36%
862,273
0.75%
0.86%
48.67
LDS1_20
Empty Nest East
5,331
0.26%
1,540,993
1.34%
0.35%
19.50
LDS1_16
Frontier Towns
0
0.00%
857,073
0.74%
0.00%
0.00
679,675
33.28%
17,395,555
15.11%
3.91%
220.22
Total Low Density Suburban 1
* Shaded areas are DEMA Target Clusters
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From Retail Stores around the country:
Dave,
I just wanted to thank you for helping us through the Be A Diver Campaign Process. We
had a very tough year last year (2008 revenue was down $100K from 2007 and 2007 was
down $80K from 2006). Fortunately, we were able to make it through this last winter
and are very encouraged about 2009. Getting hit by a tornado in 2007 added to the
tough times. Fortunately, the folks at DEMA and DAN helped us out and provided much
needed support. Tom Ingram contacted me personally and was very supportive.
At the DEMA show in Vegas I when I learned that DEMA was introducing the matching
funds for the Be A Diver Campaign, I was pretty excited because I knew it would be
targeted advertising and would allow us to get the advertising we sorely needed. I spent
some time focusing on what type of advertising would work best for us and as you know
we chose Broadcast advertising on a major TV network (NBC). We could never have
done this without DEMA’s support.
I wanted to share with you some of the exciting things that we have seen from the Be a
Diver television ads since they started in Jan:
• So far Jan and Feb of 2009 have been our best Jan and Feb since we opened.
Mar is on track to either beat or be very close to our best Mar ever.
• We have seen a significant increase in our walk in traffic from new customers
who have never been in our store before.
• Many of our old customers have seen the commercials and decided it was time to
get back into diving. This is great because some have brought in the new friends
they made since they stopped diving and have convinced them to enroll in dive
lessons.
• We have also seen a significant increase in the number of regulators that are
being dropped off for service. Service orders are more than triple what we would
normally do this time of year and most are from new customers.
While we know we are not out of the woods yet, we are a lot more hopeful than we were a
few months ago. We can’t wait for this summer to roll around if we are seeing this type
of demand already in the first quarter. We are working on an ambitious schedule for the
summer.
Thanks for everything,
Joshua Blair
Chattahoochee Scuba
706-507-2573
**********
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Hi Dave.
I just wanted to get a note off to you so you know what a help the ad campaign has been.
We are a small PADI 5 Star IDC Dive Center in up state New York. Our major employer
has had a very tough year so far with major government contract cancellations. Despite
the this challenge we had been able to sustain our revenues for 2009 at the same level as
we saw last year for the first 5 months. I contribute this very positive business result to
our ad campaign utilizing the DEMA co-op dollars and the Be a Diver support.
Thank you Dave & DEMA for your faith and commitment to us, the dive center. Without
your help we would not have the outreach we have been able to enjoy this year.
Good Diving,
Mike Elsner
Blue Ocean Divers, LLC
**********
Hello Dave:
Thank you so much for all the hard work you, your staff, and DEMA does on the Be A
Diver Pool Tour and Advertising campaigns.
We participate in each BeADiver Pool Tour in the Chicago area because we get business
from them. While the goal of DEMA is to get new people into the sport of scuba diving,
we find we get so much more than
that. In addition to new divers, we get people who want to get
continuing education, purchase gear, have their gear serviced and travel with us.
It is being in front of people who have an interest in scuba diving,
that helps us so much. For those people to have the opportunity to
try scuba diving on the spot at no charge is a real bonus. Especially
in these challenging times when people really need to be certain they like scuba diving
before making the money and time investment .
At the Adventure Travel Show in Chicago recently, we signed up a father/daughter pair
for scuba classes. They got their course materials at the show, paid for their class in full
and went home
smiling. They have upgraded their class to a private class and have
purchased regulators, BC's, computers and wetsuits for both. So far, this buddy team has
spent $7200 with us. And there is more to come.
They will soon be heading to the Florida Keys where they will complete their open water
training dives.
If they had not been able to discover the world of scuba diving and pay for their class at
the show, perhaps they might not have become our customers. Maybe they would not
have become divers.
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Following the BeADiver pool experience at Our World-Underwater this year, we have
gotten 5 new students.
These shows are consistently good for us in terms of bringing in new business.
The BeADiver cooperative advertising campaign in the Chicago area has had a positive
impact on our business. Income from classes in
February and March 2009 are up 23% compared to the same time in 2008.
Our website hits are up 9% for February 2009 compared to January 2009.
And in March, hits are up 20% compared to February. We have seen a
spike in website hits that correlate to the times the commercials air.
We have used the BeADiver advertising artwork in our successful print advertising. And
we sent BeADiver postcards to targeted addresses that you supplied us with.
So the bottom line is this: the BeADiver pool tour, advertising, and marketing campaigns
work!
Thank you very much! We look forward to continuing to work with you to help grow the
business of diving.
Nancy Boucha
Dive Travel Manager
Scuba Systems
The Be A Diver Pool Tour
One of DEMA’s main objectives is to promote recreational diving, and the Association
has provided significant amounts of media attention to the Industry over the last several
years. The Be A Diver Pool, an 18,000 gallon, 4’deep Be A Diver pool is set-up and
supervised by Be A Diver pool coordinator Jeff Mohr and is staffed with volunteer
instructors from DEMA member retail stores who take advantage of the unique
opportunity to display their banners, distribute informative materials and promote their
location to a new customer base. Potential consumers are also provided the chance to
have unique face to face contact with their neighborhood dive professional and all of their
scuba diving questions immediately answered. The grass-roots interactive opportunity
continues to prove to be a valuable resource to participating DEMA member retailers as
they continue to get new business as a direct result of their involvement.
The Be A Diver Pool has received tremendous exposure, and to make it more appealing
to companies outside of the diving industry, DEMA has been working with an
independent auditing company since 2005 to audit all media coverage of DEMA
promotional projects, such as the Pool. This is the only objective way to determine the
amount of exposure and the value of the promotional projects to the Association. To date
for 2008 and 2009, the independently audited results of this exposure have been:
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Media Category
Broadcast Exposure
Print
On line
TOTAL
Media Impressions*
10,755,331
7,642,783
252,657,282
271,055,396
Dollar Value*
$2,624,202
$51,700
Not audited
$2,675,902 + on line
DEMA’s highly visual Be A Diver Pool Tour is seen on television, various forms of print
media, and on the web. The Pool Tour has also been successful in generating significant
sales in the diving industry – around $1.3 million dollars annually during each of the last
five years.
In order to utilize the Be A Diver Pool Tour in the most effective and efficient way
possible, and to take advantage of the media attention the Pool Tour generates, DEMA
began instituting a number of changes to this most visible program during 2007.
Location selection, size and compatibility of the media markets, the steps taken while
operating with consumer dive shows, and the direction of our public relations efforts, all
played a role in acquiring the PR value of the pool. This effort continued in 2009.
In addition to inviting the media to these Be A Diver Pool Tour events, DEMA can
provide “b roll” (generic diving and Be A Diver Pool Tour footage) and other
promotional tools to promote diving in the local media. DEMA also uses the Be A Diver
Pool to support a career fair program in concert with the local school system and other
activities.
21
In Flight Media Associates and Delta Airlines
In October 2009 the diving industry made it into the air! In Flight Media Associates
planned and proposed a diving-related in-flight video, and invited many companies from
the diving industry to participate. Using Be A Diver.com, DEMA joined with a
destination (Cayman Islands), two training organizations (DAN and PADI), a
manufacturer (Sherwood) and a hotel (Sunset House), and all agreed that to benefit the
entire diving industry, the main call to action for viewers would be, Be A Diver.com.
The In-Flight Media Associates productions exposed more than 2.6 million travelers on
Delta Airlines to recreational diving for the entire month of October 2009.
22
Show Committee – Neal Watson, Chair
Beginning well before DEMA Show 2003, DEMA has been working to determine the
needs of the Industry with regard to the DEMA trade show. Working directly with the
members of the Board of Directors, members of the Industry at large, and DEMA Staff,
the Show Committee determined the best overall time of year and locations for
conducting the Show. Since 2005, the DEMA Show has been on a venue rotation
between Las Vegas, Nevada and Orlando, Florida. The Show will continue to be held in
the fall, and the Orlando/Las Vegas rotation will continue through at least 2011.
DEMA staff and Board members are always looking for ways to maintain and increase
the value of exhibiting at and attending DEMA Show. Since 2003 additional benefits
have been developed for members to attend the show including significant discounts for
exhibits-only and seminar entrance.
Exhibitor programs include the DEMA Retailer Resource Center, and the returning
Image Resource Center which focuses on the photography and video industries. This area
showcases companies that are in a unique position to help the entire Diving Industry
acquire more customers. Companies specializing in photography and video are
exhibiting in this area, and almost all are providing FREE seminars on digital
photography, video and ways for all businesses to use this popular activity to turn more
people into divers.
For several years DEMA has also operated a “Host/Guest” exhibitor program to help
exhibitors work together during periods of business consolidation, and at the request of
exhibitors and attendees, DEMA tightened the requirements for entry of professionals in
the Show and strictly prohibits “suit casing” or aisle selling by exhibitors, as well as
companies that are not currently exhibiting.
During 2009 DEMA conducted surveys regarding the possibility of allowing consumers
to enter DEMA Show, and held a Manufacturer’s Forum to discuss issues with the Show
and with the Association itself. From that forum came a number of ideas, all of which
are being discussed and some of which are being implemented as soon as possible.
DEMA is conducting two additional Member Forums at DEMA Show 2009, and all are
invited to attend to discuss the trade show and suggestions for the association:
Thursday, November 5, 2009
5:00pm to 6:00pm
Retailer Resource Center Booth #1601 - Mini Seminar Area
Saturday, November 7, 2009
10:00am to 11:00am
Retailer Resource Center Booth #1601 - Mini Seminar Area
DEMA Show Among Top 200 Shows!
23
In 2008 DEMA Show was again recognized as being one of the top 200 tradeshows by
Trade Show Week Magazine. This ranking is due to the support of exhibitors and
attendees, and because of the support of organizations that participate in the DEMA Hotel
Block during the trade show. The Show Committee thanks all who participate in DEMA
Show!
Site Selection and Timing of DEMA Show
Site selection and timing of DEMA Show are based on the benefits to exhibitors and attendees, including
hotel room pricing and proximity to the convention center, exhibitor rates for labor, and other factors.
DEMA Show Attendees and Exhibitors have indicated through surveys and stakeholder meetings that Las
Vegas and Orlando were among the best cities for them in which to attend and exhibit at DEMA Show.
Establishing a location rotation with Las Vegas and Orlando is a reflection of DEMA customer’s needs. As a
result, DEMA Shows will be held in the following rotation:
2008: Las Vegas, Nevada
2009: Orlando, Florida
2010: Las Vegas, Nevada
2011: Orlando, Florida
In addition to these customer-selected venues, surveys and stakeholder meetings clearly indicate that there
is a variation in timing preference; one that is dependent on the stakeholder and their business cycle, as well
as their particular geographic location. Information gathered from retailers and others that have participated
in DEMA’s stakeholder meetings, surveys, and other sessions, have indicated that there are two keys to
encourage DEMA Show participation: hold the Show at a time when there is as little direct interference as
possible with the varied stakeholders’ businesses, and make sure that the Show is conducive to conducting
business.
DEMA has continually focused on augmenting the benefits to attending the Show. Initiatives have included
the tightening of buyer registration procedures and the production of solid educational opportunities that
provide opportunities for attendees and exhibitors to learn new methods to grow their business. These
benefits are in addition to the buying and selling opportunities and the chance to see new equipment as well
as network on a face to face basis, all of which have been and will continue to be the hallmark of DEMA
Show.
Timing the Show to meet the varied geographic and business cycle needs for our industry has proved
challenging. Conducting the Show in early to mid-October causes conflicts with many retail businesses, and
the former late-January timing of DEMA Show in its first 25 years caused just as many conflicts with other
types of businesses in different parts of the country and world. Through surveys and stakeholder meetings it
became clear that the timing for DEMA Show that produced the least amount of business interference for
both exhibitors and attendees is in the period from the end of October through the first several weeks in
November (just prior to Thanksgiving). The Shows have now been booked as close to this time frame as
possible for the venues requested by DEMA exhibitors and attendees.
24
Bringing in Young Professionals
In addition to bringing in young consumers, DEMA also recognizes the importance of
encouraging early participation in the industry by younger diving professionals.
Many instructors and professionally-certified diving leaders do not fully engage in the
industry until some time after first becoming certified at the professional level. Many
may not see the full extent or professionalism of the industry until they come to their first
DEMA Show. Since individuals certified at the professional level (ie: instructors,
divemasters, dive control specialists, and assistant instructors and others with
professional credentials) have long been permitted to attend the trade-only event, DEMA
developed a pilot education program for DEMA Show 2007, continuing in 2008 and
2009, to encourage these typically-younger professionals to attend.
CREDENTIALS AND DOCUMENTATION
ATTENDEE NON-BUYER OPTION 1 (Dive Store Staff, Travel Industry Professional, NonExhibiting Manufacturer or Other Industry Professional
The Following Credentials are Required:
•
Valid printed business card to include name of business under which the attendee
registers, attendee name and position
AND ONE of the following:
•
•
•
•
Tax ID # for the dive-industry business under which the attendee registers.
Copy of current (last 12 months) business license with name of business under which the
attendee registers. Please note: If current license was sent in with your 2009 DEMA
Membership payment you may skip this step. If unsure, please send in a copy.
Paycheck stub issued to attendee by company under which attendee registers. Must
include company name and attendee name and be dated within 90 days of DEMA Show
2009
International Identification - business registry information used in the country of origin or
which permits buying in the US
ATTENDEE NON-BUYER OPTION 2 (Instructor, Assistant Instructor or Dive Master/Con, Etc.)
The Following Credential is Required to Register:
•
Training Agency-issued certification card including name and level of professional
certification achieved
Instructors, Assistant Instructors, Dive Control Specialists and Dive Masters are NOT
automatically qualified to receive a “Buyer” designation and are therefore ineligible to receive
pricing information unless they can produce “Buyer” documentation.
DEMA hopes to continue encouraging recently-certified professionals to attend DEMA show for
the future. As with all who register for DEMA Show, these pros are required to provide
appropriate documentation before entry is permitted, and they are provided only with Show
credentials that are appropriate for their level of certification and qualifications.
25
The “Immersion Program” consists of a one-day pass to DEMA Show, offered at a lower
registration price and good only for Saturday, November 7.
As with everyone attending DEMA Show, professionals obtaining the Saturday-only
Immersion Pass are required to present a photo ID on site (such as a driver's license or
photo diving certification card or similar) when picking up badge holders and/or badges.
In addition, the following credentials are required for entry to DEMA Show 2009:
Magnet Exhibitor Program – Pilot Program
This program places interested DEMA-member exhibitors in strategic, pre-determined
locations around the DEMA Show floor, using incentives to encourage exhibitors to
participate. The pilot program takes advantage of the fact that trade show sales floors
function in a manner similar to “shopping malls” which place magnet stores (in this case,
magnet exhibitors) in specified areas, helping to direct the flow of attendee traffic, for the
benefit of all exhibitors.
The Magnet Exhibitor Program is designed:
1. To help insure that major exhibitors exhibit at DEMA show, in turn helping to
attract more and better qualified show attendees
2. To assist all exhibiting companies by helping direct attendee traffic throughout
the show floor
3. To provide additional return on investment to companies investing in DEMA
Show through exhibit space purchases of 800 net square feet or more.
Any DEMA-member exhibitor, exhibiting at DEMA Show 2009 is eligible to participate
in this pilot program for DEMA Show 2010. Selection is based on magnet space
availability and their seniority space selection points.
There are three separate Magnet “zones” on the DEMA Show 2010 floor plan.
Exhibitors that select at least 800 net square feet in exhibit space within these zones are
eligible for the promotional pricing. In total there are more than 600 10x10 exhibit
spaces within these three Magnet Zones.
There are several benefits to all exhibitors:
1. By creating “zones” on the show floor in which “Magnet Exhibitors” are placed,
attendee traffic is directed throughout the show floor to each of the zones. Traffic
direction maximizes the exposure received by the other exhibitors in the path of
and near the magnet zones.
2. Changing the flow of traffic allows all exhibitors to have a greater opportunity for
“face time” with potential and current customers. Especially when exhibits are
designed to attract these customers, get them to dwell longer, and provide more
time and interaction with them, the result is a better show for all.
3. Exhibitors that recognize the value in this program also help attract professionals
to attend the show. This means more attendees will be engaged in educational
programs and more will be excited about buying new products and services from
multiple vendors at the show.
26
For Magnet Exhibitors there continue to be essential benefits of exhibiting at DEMA
Show, including:
• “Face time” with customers and potential customers
• Attracting new persons to the industry and retailing (remember, more than 30% of
all DEMA Show attendees are “first time attendees” EACH YEAR)
• Support of current retailers through seminars and other contact opportunities
• Show Only Sales
• Future sales/sales orders
• Enhanced brand image
Evidence shows that a majority of retailers/attendees come to DEMA Show because they
want to see new products and services from all their vendors, and they expect these
vendors to support them at the show. However, in recent years some companies have
altered their sales cycle and process by using a field sales force to introduce products and
services to their professional customers prior to DEMA Show. While it is understandable
that the marketplace has changed in the last few years, the result is that some major
exhibiting companies do less selling at DEMA show, which impacts their dollar ROI.
This program changes the cost/sales equation for exhibitors that wish to purchase
substantial exhibit space at DEMA Show.
The program provides more opportunities for exhibitors to select their space in close
proximity to a major exhibitor. This helps to increase visibility for all exhibitors, as more
attendees will be directed around the show floor.
Magnet zones are designed to attract attendees to various areas of the show floor, and as
such are not placed directly near the front show entrance. This means that additional
space is available for non-magnet exhibitors near the entrance, and in locations near areas
of interest, such as the demonstration pool, retailer resource center, image resource
center, etc.
27
28
Legislative Committee – Jim Byrem, Chair
2009 brought many legislative and economic changes on the national level, and on the
local level in several bellwether states.
Legislative efforts can be complex and require much time for monitoring, developing
position statements and sometimes testifying before lawmakers and others. DEMA has
devoted resources to these efforts because they benefit all members through the
promotion of recreational diving, protecting diver access to diving locations, and by
protecting the underwater environment. Some of the topics addressed during 2009
include:
•
•
•
•
•
•
Parental Releases Allowing Minors to Participate in Recreational Activities in Florida
Ships to Reefs in Florida – the sinking of the Vandenberg
Supporting “Listening Session” on Human/Manatee Interactions
DEMA Meets Federal Legislators on Capitol Hill To Advance Small Business Health
Insurance Initiative And Support The Convention Industry
Be A Diver- Florida Lobster Season Public Service Announcement
Comprehensive Ocean Management - Letter to the Editor
Parental Releases Allowing Minors to Participate in Recreational Activities in Florida
In December 2008 the Florida Supreme Court ruled that releases signed by parents for
minors cannot be used to bar legal action.
In a decision that could have an impact on all specialty activities, including recreational
diving and snorkeling, the Florida Supreme Court ruled on Thursday December 11, 2008
that parents cannot sign away their minor child’s right to sue a business. Specifically the
Court held, “…[We] find that public policy concerns cannot allow parents to execute
pre-injury releases on behalf of minor children.”
Prior to this ruling, parents or guardians of minor children in the state of Florida could
assume and acknowledge the risk for their children’s participation in recreational diving,
and acknowledge such assumption of the risk by signing a “Release of Liability” (also
called “Waiver,” “Assumption of Risk” and various other names). Acknowledging the
risks provided a statutory measure of legal protection for dive operators when a minor
child was injured.
This Supreme Court ruling permits parents in Florida to bring suit against dive operators
with regard to minor children even when a form is signed and the risk of participation has
been acknowledged by a parent or guardian. However this ruling DOES NOT change the
law in Florida in regard to releases executed by adults (18 years of age and older). Those
releases effectively ban lawsuits by adults who assume the risk for their own
participation.
DEMA organized a campaign to alert retailers, charters and other dive operations,
instructors, and other dive operations in Florida and all states should continue to provide
29
excellent education and service and make sure that participants are aware of the risks
involved with participation.
Operators should continue the requirement that participants sign an appropriate written
“release” document. This applies to participating adults and to parents/guardians of
participating minor children. In the event of an accident or law suit, having participants
sign the “release” helps to prove that they are aware of the risks prior to participation.
Having participants sign the “release” is also most likely required by your affiliated
training organization and insurance company.
All Florida-based diving businesses were advised to discuss this ruling with their counsel,
review their insurance requirements and coverage, and determine the best course of
action for their individual business.
This ruling has now generated the introduction of several bills to assist in reinstating the
ability to have minors participate in recreational diving and snorkeling. DEMA will
continue to advise members of the situation as we learn more.
Ships to Reefs Legislation in Florida - USNS General Hoyt S. Vandenberg
The culmination of last year’s DEMA-sponsored Ships to Reefs legislation, signed into
law in June, 2008, was the sinking of the USNS General Hoyt S. Vandenberg off of Key
West, Florida in May 2009.
Funds to sink the Vandenberg came in part from the Ships to Reefs bill which was first
proposed in November 2006 by Al Hornsby, Sr. Vice President of the Professional
Association of Diving Instructors (PADI Worldwide) and President of the DEMA Board
of Directors, and by attorney Bob Harris under the auspices of PADI. In January 2007,
DEMA was asked to take the lead in securing passage of the legislation and retained Bob
Harris as a lobbyist in Tallahassee, Florida.
In conjunction with the sinking of the Vandenberg, DEMA offered an education session
for Florida legislators and others, presenting information on the economic and
environmental benefits of sinking ships as artificial reefs. These education sessions
offered were similar to those presented by DEMA over the last five years in conjunction
with consumer dive shows, DEMA Show, and others.
According to one study, artificial reef sites based on sunken ships generate an average of
$3.4 million in gross revenues annually. Estimates from the sinking of the USS Oriskany,
sunk as an artificial reef in Pensacola in May of 2006, are more than $220 per person per
day. The return on investment is more than $131 for every $1 dollar of local and state
investment. Similar returns are expected from the sinking of the Vandenberg.
DEMA hopes that our effort and success in getting a bill passed in Florida to help fund
the sinking of these artificial reefs will inspire other states to create and pass similar bills.
The Ships to Reefs bill not only provides opportunities for additional coastal marine
habitat, but will also generate substantial revenue for the Florida tourism industry,
30
including over 250 Florida-based retail dive centers, additional fishing businesses, hotels,
restaurants, marinas and others serving the thousands of visitors who choose Florida to
scuba dive on the artificial reef trail.
Listening Session on Human / Manatee Interactions in Crystal River
DEMA contacted retail dive stores to encourage their attendance at the Florida Fish and
Wildlife Conservation Commission Listening Session, held in conjunction with the
United States Fish and Wildlife Service, to gather information on human / manatee
interactions in the Crystal River area and to review harassment laws as they apply to
these interactions.
DEMA’s involvement was to monitor and comment on the possible outcomes of such a
Session, including gathering ideas on ways to better manage human / manatee
interactions. Among the topics covered were
A.
Manatee use and mortality within the Crystal River area
B.
State and federal laws and regulations pertaining to manatee harassment
C.
Update on protection efforts related to manatee / human interaction
D.
Public comment regarding manatee / human interaction
DEMA Meets Federal Legislators on Capitol Hill To Advance Small Business Health
Insurance Initiative And Support The Convention Industry
Tom Ingram, Executive Director met with members of the US House and Senate and
their staffs in Washington DC on April 1, to discuss the role of associations in the current
economy, the value of conventions such as DEMA Show, and how associations like
DEMA can assist with providing affordable health insurance options for small businesses
members.
Ingram came to Washington DC as part of a national delegation of association
executives, and was sponsored by the American Society of Association Executives
(ASAE), and the California Society of Association Executives (CalSAE). Ingram serves
on the Board of Directors for CalSAE.
As Ingram explained to members of the House and their staffs, “Associations provide a
means of researching the businesses they represent, provide their members with
education, networking opportunities, marketing information and assistance, and help
advance businesses of all sizes, contributing their survival and success.” Knowing that
elected officials are not necessarily familiar with the effort made by associations to
ensure their members’ continued existence, these meetings gave this national group of
association professionals an opportunity to make it clear that associations do help to
advance business.
Ingram also explained the value of conventions and meetings such as DEMA Show.
Most officials are not aware that typical associations derive greater than 50% of their
revenue from the production of one or more trade shows. DEMA has a similar revenue
31
structure and puts all monies earned back into the industry as well as using these monies
for administration of the programs. DEMA continues to fund such programs as the Be A
Diver marketing campaign, the Be A Diver Pool Tour, the matching funds co-op ad
program, and all industry research, including the DEMA Certification Census.
DEMA, ASAE and CalSAE also discussed the costs of health care to small businesses
with staffers and elected officials. As part of that advocacy DEMA encouraged
legislators to support the Small Business Choice Act, House Bill 859. This bill, which
has bipartisan sponsorship in the House, would allow associations to create insurance
“captives” that pool their small businesses members together in each state for the purpose
of reducing the cost of catastrophic health insurance to these businesses. Under HB 859
associations could form a cooperative among members that would allow associations to
offer catastrophic health insurance to employees of their members. With catastrophic
health care offered under an association umbrella, the risks are spread among a larger
pool of insureds, reducing the cost of both the catastrophic and basic health insurance
coverage. The availability of reduced cost insurance makes it more affordable to
employers. HB 859 also provides for a tax break for employers equivalent to 65% of the
cost of the catastrophic insurance they offer their employees.
Ingram discussed health care with staffers for Senator Diane Feinstein (D, CA) at Ms.
Feinstein’s weekly constituent breakfast, and discussed associations, conventions and HB
859 with the offices of Darryl Issa (R, CA), Duncan Hunter (R, CA), George Miller (D,
CA), Jerry McNerney ( D, CA), Bob Filner (D, CA), Loretta Sanchez (D, CA), Brian
Bilbray (R, CA), and Dana Rohrabacher (R, CA).
DEMA funds legislative efforts that help member businesses. All such support from
DEMA is funded by resources generated through DEMA Show, which supports all of
DEMA’s promotional programs, including DEMA’s Be A Diver® campaign.
Be A Diver Florida Lobster Season Public Service Announcement
DEMA Executive Director Tom Ingram, and Dan Orr of the Diver’s Alert Network
(DAN) joined with officials from the Florida Fish and Wildlife Conservation
Commission (FWC) and the United States Coast Guard (USCG) for a press conference at
the USCG Miami Sector to unveil the first state-wide public service campaign aimed at
increasing awareness of scuba diving safety to reduce or eliminate the number of
incidents of bodily harm during the Florida spiny lobster mini-season.
In advance of the 2009 mini-season, the campaign encouraged scuba divers to check their
equipment and refresh their diving skills at a local retailer, and be mindful of safety
procedures. A :30 Public Service Announcement (PSA) was made available to Florida
TV networks and a 18”x 24” poster were unveiled. The poster was sent to 389 dive
stores and related businesses in Florida and the adjoining coastal counties in Alabama
and Georgia with the goal of reminding divers that prior to lobster season, it’s not too late
to tune up their equipment and refresh their skills before lobster mini-season. The
announcement was made alongside officers of the FWC and Coast Guard, unveiling
Florida Governor Charlie Crist’s proclamation of dive flag awareness week.
32
The video can be seen on YouTube at:
http://www.youtube.com/watch?v=AAYgBadqyJA
Comprehensive Ocean Management - Letter to the Editor
In September, in response to an article in the Tallahassee (Florida) Democrat entitled
Comprehensive Ocean Management is Job One, by Paul Johnson, DEMA explained to
Florida Legislators the importance of being responsible in the legislative process when it
comes to such management of these resources. The letter explains that,
“The diving industry recognizes that when marine sanctuaries and such use “zones” are
designated under the National Marine Sanctuaries Act or other comprehensive
management systems, it is because of specific conservational, recreational, ecological,
historical, research, educational or aesthetic values. During the June 2008 testimony
given by the diving industry before The Committee On Natural Resources, Subcommittee
On Fisheries, Wildlife And Oceans in the U.S. House of Representatives in support of the
reauthorization of the National Marine Sanctuaries Act (NMSA), we indicated that we
prefer that the process for designation of these areas:
1. includes input from all user groups
2. provides for a clear balance between access and use by interested parties, and health
of the resource
3. recognizes that diving and snorkeling are not inherently consumptive activities
4. does not unnecessarily restrict non-consumptive activities
33
While recreational scuba diving and snorkeling are not inherently consumptive in nature,
the diving industry testified before the House Sub-Committee, and maintains today, that
ocean management tools such as the NMSA or other forms of ocean “zoning” should
support such consumptive activities as spear fishing within the boundaries of a given
sanctuary when the following criteria are met:
1. Hook-and-line fishing activities within the sanctuary are allowed and supported by
sound science and sanctuary policy.
2. Sound science exists to support consumptive activities such as spear fishing
3. Sanctuary policy supports such consumptive activities
4. Non-consumptive, low intensity level activities should be allowed to continue, and
should not require permitting.
We also maintain that in the designation of sanctuaries and other management zones
there should consistently be establishment of research areas that include no-take zones
which restrict hook-and–line fishing, spear fishing and other consumptive activities, but
do not exclude non-consumptive activities.
We agree with Mr. Johnson that no “wild west” approach should be considered in
determining the management of vital ocean resources. Hardin’s, “Tragedy of the
Commons,” referenced by Mr. Johnson has been described by some as, “historically
uninformed, sociologically naïve, economically simplistic, and just plain wrong.” Let’s
not make the mistake of succumbing to a flawed view. We can agree that
comprehensive, and responsible management with the above safeguards is the real task
and job one.”
Internet Tax Initiative
During the NJ/Beneath the Sea Retailer meeting one retailer requested that DEMA
review and prepare a position statement regarding the lack of taxes in many states on
Internet-based sales.
Since the Internet became a means of commerce there have been calls by some bricks and
mortar retail stores to require that sales from the Internet be taxed in the same manner as
those done through such bricks and mortar stores. Doing so, it is maintained, allows the
bricks and mortar stores with a physical presence in a given state, to compete fairly with
such stores.
In a 1992 decision, Quill v. North Dakota, the U.S. Supreme Court ruled that retailers are
exempt from collecting sales taxes in states where they have no physical presence, such
as a store, office, or warehouse. (The legal term for this physical presence is "nexus.")
Although the case dealt with a catalog mail-order company, the ruling has subsequently
been applied to all remote sellers, including online retailers. The Court said that requiring
these companies to comply with the varied sales tax rules and regulations of 45 states and
some 7,500 different local taxing jurisdictions would burden interstate commerce.
34
In its ruling, the Court specifically noted that Congress has the authority to change this
policy and could enact legislation requiring all retailers to collect sales taxes without
running afoul of the Constitution. "Congress," the Court declared, "is … free to decide
whether, when, and to what extent the States may burden interstate mail-order concerns
with a duty to collect use taxes."
Today, software has largely eliminated the difficulty of calculating and remitting sales
taxes for the country's many state and local jurisdictions. Indeed, Amazon.com, which
opposes extending sales tax to online retailers on the grounds that it would be
"horrendously complicated," collects sales taxes nationwide for Target as part of its
management of the chain's online business.
It is important to note that, while remote sellers are not required to collect sales taxes, the
tax is still owed by the individual who made the purchase. Individuals are supposed to
keep track of these purchases and pay an amount equivalent to the sales tax as a "use" tax
on their state tax returns. Few people do, however, and the use tax is almost impossible
to enforce, which effectively exempts these purchases.
After discussion and research, it is clear sufficient funding is not available through the
diving industry to have a significant impact on this issue at this time.
Research
DEMA continues to conduct various ongoing research projects. Research can typically
be broken down into primary (conducted directly by DEMA) and secondary (research
conducted by another source). For some projects DEMA has relied on member-owned
research which has proven to be dependable for projects within the diving community
itself. For projects that require additional corroboration of results, DEMA has sponsored
primary research that provides data which can be confirmed by a third party.
Certification Census
Thanks to the certification organizations data has been made readily available regarding
the number of divers certified each year. Starting in 2003, DEMA began gathering the
data on Open Water level diver certifications (as defined by the Recreational Scuba
Training Council –RSTC) as a measure of growth for the Industry at large. This is an
important statistic for the Industry, especially at the level of entry certifications as it is
indicative of the health of the sport.
The cooperative effort between all of the reporting certification agencies includes
reporting their certification information to an independent, third party auditing firm. The
numbers are reported to DEMA only in total after the third party auditing firm does a
thorough review of the data and removes any duplications that appear across agencies.
This process is designed to make the Census totally anonymous with regard to training
agencies and to produce an accurate accounting of the totals within the US. Neither the
DEMA Office nor the DEMA Board ever sees the individual agency totals, only the
35
aggregate total. Updated certification census data is available at www.dema.org and
state by state data is available to DEMA members.
Certification Census for 2008*
60000
60000
54286
50000
42653
50000
40000
40000
30000
28282
28049
30000
20000
56532
44939
10000
20000
30542
28236
0
10000
2008
0
1Q
Q1 2QQ2
Q3
Q43Q
4Q
Manufacturer’s Econometric Business Index (MEBI)
For more than 20 years DEMA has gathered and reported data on sales at the
manufacturing level. The data is reported by those manufacturers that voluntarily
participate in the program and is gathered by a third party administrator on a monthly and
quarterly basis. The individual manufacturer’s information is kept confidential and only
the aggregate is reported to participating companies.
Data from the ongoing MEBI research program is used by manufacturers to compare
their sales with those in the Industry, to help understand market share information, and to
help determine trends.
Domestic 2007-2008-2009 To Date
16,000
14,000
2009 to
Date
10,000
2008
8,000
6,000
2007
4,000
2,000
U
SE
S
T
PT
EM
B
ER
O
C
TO
B
ER
N
O
V
EM
BE
D
R
EC
EM
BE
R
LY
JU
UG
A
NE
JU
M
A
Y
A
PR
IL
0
JA
N
U
AR
FE
Y
B
R
UA
R
Y
M
A
R
CH
Shipments
12,000
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Customer Research
In 2006 DEMA first introduced the idea of Lifestyle or “Psychographic” data to the
diving industry as a means of understanding more about the potential diving customer.
Data was gathered from the customer data bases belonging to training organizations,
manufacturers, retailers, destinations and the media to understand more about the most
active or “alpha” diving customer – the one that spent the most on the sport and was most
regularly involved in recreational diving. More than 308,000 customers were viewed in
this study.
The data gathered in 2006 revealed the picture of the most active diver having the
following profile:
• Age – Between 38 & 53 years old – Mean: 45 Median: 46
• 76% are male
• Household Income – 56% make between $75,000 and $100,000
• Occupation – 80% are White-Collar/ Professional/ Technical/ Management
• Home ownership – 93% own their own home
• Home mortgage median amount – $148,000
• Marital Status – 71% married
• Presence and age of children – 17% have kids under 18
DEMA uses a well known database (AnySite and PSYTE) depicting
psychographics/lifestyle. The most desirable potential customers fit the following
descriptions:
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In 2009 DEMA participated with a follow up research program using manufacturers only.
Most retailers count heavily on the sale of equipment to be profitable, and the need to
understand the equipment-buying consumer is critical as part of the on-going
understanding of the diving industry.
Results are preliminary at this writing, but based on around 100,000 diving consumers
that have bought equipment between 2006 and 2009, the following lifestyle groups are
emerging as equipment buying consumers (in quantity order):
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1. Executive Domain
2. Sierra Snuggle
3. Suburban Wave
4. Active Seniors
5. Changing Places
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Meetings and Other Activities
During 2009 DEMA conducted several meetings around the country, to discuss ideas to
cope with the economic situation and its impact on the Diving Industry. In addition to
discussing the issues if staying visible to get through the recession, saving money through
the use of Be A Diver pre-prepared advertising materials and other strategies, DEMA
also brought in representatives from the Small Business Administration and local lending
institutions to discuss how the federal stimulus package may impact the diving retailer
and others.
This was also an opportunity for retailers and others to discuss other DEMA business,
including the trade show and the association’s overall strategy to help the industry
survive in this economy.
Meetings were held in conjunction with some of the regional consumer dive shows such
as Beneath the Sea, The Long Beach Scuba Show and the WA Dive and Travel Show and
others. Thanks to all those show organizers for allowing DEMA to bring the retailers
together to discuss these important issues!
DEMA also conducted a Manufacturer’s Forum, and in addition to the General Member
Update, is conducting a Board Listening Session just prior to DEMA Show 2009, as well
as two Member Forums during the show itself. The goals is to provide the best
opportunities for all to provide input for the direction of the show, as well as the direction
of the association.
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