The DIVERT Story - Part 3 - No Pain, No Gain
Let’s start off by saying, there are apparent issues facing the Action Sports industry, but there are obviously solutions on the horizon. We know that only once we gain mass acceptance of these pain points, will we also gain mass support to resolve them. The best way to convey the severity of the problem that we are dealing with is two fold. First is to personalize it to anyone and everyone reading this article. The second is to provide some shocking facts and figures that help the reader to better understand how large this market pain point really is, and in turn, how large the potential Gain point from solving the market pain is. Ready? Set? Let’s drop in!
Personalize the Pain Point
Let’s start by personalizing the problem for just about every person reading this article. No matter your income level, no matter if you have had the good fortune to participate or not, never having met you, I bet we at DIVERT can guess a reason that you have decided not to participate in Action Sports when you otherwise wanted to. Get ready to play the star of this scenario.
Let’s say you are sitting at home reading this article, and the inspiration hits you to go snowboarding. Ok great, step 1, inspiration, CHECK! Now let’s put that inspiration into action. First, do you have the equipment necessary to go snowboarding right now? If the answer is no (which it probably is for 99% of you), well then that inspiration to go participate quickly fades, you go on with your day and you move on from trying to participate.
Let’s say you are part of the 1% that have the gear readily available, GREAT! Now let’s pack all that gear up and get ready to drive to where you can actually participate in snowboarding. For 99% of the 1% that have made it this far, this will likely require 4-10 hours of travel time (there and back) in addition to the time you actually want to be snowboarding. It would even most likely require a flight for a vast majority of people. So once inspiration to participate hits, and you have the gear, do you have 4-10+ hours to spare? Probably not. The desire and ability to participate diminishes even more.
Let’s say that you are part of the 1% of the 1% that live within striking distance of a mountain, and you have all the equipment readily available. CONGRATS ON MAKING IT THIS FAR! You go online in order to buy a lift ticket anddddd Holy Sh*!, to ride for one day is going to cost me $250?? No matter what your income level is, that hurts. Yet again, you run into another stop point and instead of acting on your inspiration to participate, you give up and go on with the rest of your day. The more this scenario takes place, the less likely inspiration is to hit the next time.
Running through that scenario, can you feel the pain points that are currently present in the marketplace? Do you understand the barriers a little bit better? I know when we run through that exercise, we take two major things away from it. We are actually surprised that anyone participates in these sports at all with all those barriers in the way, and in fact, it actually shows exactly how engaging these sports are that anyone is willing to do all that to participate for a few hours. And two, your desire to participate is valid, and your inability to do so, is just as valid.
The good news??? All these problems are solved if there is a DIVERT in your community!
Let’s say a DIVERT exists in your city. You are reading this article and inspiration hits to go snowboard. Don’t have gear? No problem, all gear is included in your session fee. Only have an hour or two before your next commitment? No problem, you can buy an hour session, drive there in 10-30 mins, have your snowboard session and be back in time for the rest of your day. You go online and look to purchase an hour, “$25, I can afford that.” You buy your ticket hop in the car and now acting on that inspiration is not that difficult at all.
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The Pain Point By the Numbers
Let’s take the scenario above as an example and look to base those pain points in actual numbers. At DIVERT we have done extensive research on the pain points that exist above and performed an internal study to shows how the current state of the industry and lack of infrastructure cause the social inequities in Action Sports. The summary results of our study are below (and the full study is LINKED HERE).
The purpose of the study was to show the drive time and financial investment that it takes for people in 6 major markets across the country to participate in surfing or skiing/snowboarding. We included most major factors to their investment including equipment purchase, travel expenses, and participation expenses (lift tickets etc.). We left out the expense associated with lessons because those are an optional expense. The table below summarizes the financial results.
The conclusions of the accessibility study go like this. If you live in a place like Chicago it will cost you $5,500 to participate 10 times in surfing. If there is a DIVERT in your city, it will only run you $520. The results are just as staggering for skiing/snowboarding. If you live in a place like Los Angeles and you would like to go skiing/snowboarding 10 times, it will cost you $4,884 just to get into the sport.
Currently only individuals that make over $100k/year are able to even consider participation in these sports and even then, they would need to be willing to spend about 5% of their annual income on a single hobby. The median income on the United States is around $50,000. This means that for the average person to participate in these sports as they currently exist, they would have to spend 10% of their annual income which is simply just not reasonable or feasible. Now let’s look at how much it would cost to participate the same amount of times if there was a DIVERT in your city.
It goes without saying that this cost of participation at DIVERT is much more feasible. We included the same costs as above, gear, travel and participation expenses in the analysis. What this does is open up the market to people that make $30,000+/year in household income,. Rather than it costing the interested participant with median income of $50,000, 10+% of their income,if a DIVERT facility existed in their City it would only cost them about 1% of their annual income ($570/$50,000), a much more feasible number for a family or individual with much less disposable income.
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THE PAIN POINT & THE GAIN POINT
While the masses love action sports, many are shut out from participating because the sports are inaccessible, unaffordable, intimidating and unwelcoming as they exist today. Based on an additional market study run through Facebook insights, we looked to determine the disparate nature between interest in Action Sports and participation in Action Sports. We hoped to validate our findings from the accessibility study, and the results did not disappoint.
We found that in the U.S. alone 66 million people currently show interest and engage with Action Sports brands, content and events which is one in every 5 Americans (this figure is primed to sky rocket after skateboarding and surfing make their Olympic debut in the summer of 2021). Compared to the total population, only 5% of the population participates in these sports. What this shows is a massive opportunity to capitalize on the difference between interest in these sports and the ability to participate in them.
To drive the point home, let’s look at the Los Angeles/Orange County specific markets that affect this DIVERTsessions Pop-Up in Spring of 2021. In the Los Angeles/Orange County area there are 1,227,603 homes with household incomes over $100,000. If you take that number and compare it to the number of household incomes of $50,000- $100,000 we discover the new market that we are able to create for people to participate in these sports. In Los Angeles/Orange County alone, there are 1,622,047 households that fit that 50,000-100,000 income criteria that will now be able to participate in these sports that were not able to before (that’s 4,055,117 people in Los Angeles and Orange County alone that can participate in Surfing and Snowboarding that we’re unable to before.).
DIVERT will undoubtedly have a massive impact on bringing social equality to Action Sports participation and giving these opportunities to populations, races and genders previously shut out from Action Sports. It solves for all major pain points facing the industry, and allows for those that have the inspiration to participate in action sports (which is more than ever before) to easily, affordably, safely and conveniently act on that inspiration.
IT SOUNDS GREAT, CAN I GET INVOLVED?
We know we have been sitting at home, sometimes stumped or overwhelmed by how to make a difference and combat the apparent social issues that have been brought forward throughout 2020. So we decided to provide a platform that could be built by the community, for the community. The DIVERTsessions Equity Crowdfund was born in order to give our community an opportunity to go beyond donating to a cause they care about, all the way to owning a part of a company that is on a mission to make a long term difference, financially and socially. If this sounds like a company that you would like to be a part of, have a say in how we do good in our community and be a part of the financial and social success we create together, you can find out more via the link below.
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If you really love the cause, and are proud to support it, share our campaign page on your social channels! https://wefunder.com/divert.
WHAT ARE PEOPLE SAYING ABOUT DIVERT?
"DIVERT is packaging experiences in a new and compelling way like iFly and TopGolf but with more cultural and social impact.”
- Peter Ruppe, Former VP at Nike
“DIVERT is creating a great new experience”
- Joe Pine, Author “The Experience Economy”
"DIVERT has the potential, matching LBE franchises like TopGolf."
- Matt Palmer, Former SVP Marketing at Disney Channel
"Someone is going to build a massive business here and I think DIVERT has the best chance!"
- Ed Wilson, Anthos Capital
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INTERESTED, BUT HAVE A QUESTION?
Don’t hesitate to reach out to our Founders directly: