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Golf operators can learn a lot from McDonalds

POSTED ON October 26, 2017 @ 8:00 am

I hate to say it, “golf operators can learn a lot from McDonalds.”

McDonalds is famous for the term ‘Supersize Me’ and the great promotional product ‘Happy Meal’ which your kids insist you buy for them. You can take the same simple business strategies and implement them at your golf facility under the headings of ‘Up selling’ and ‘Bundling’ which could have a tremendous boost to your bottom-line.

‘Up selling’ usually refers to an attempt to get the guest to buy something additional that they were not planning on buying, such as a bag of crisps, bag of tees, or a sleeve of balls.

‘Bundling’ on the other hand refers to the inclusion of additional components with a green fee, such as lunch or merchandise, for a special promotional rate – e.g. $40 for green fee, cart fee and a sandwich. These terms are normally treated as separate strategies, but the paradigm for both these terms shifts if you consider them both as a part of a single process i.e. “Bundling and Up selling.”

The best way to get players to spend more money while they are at your course is to offer ancillary products at a price that has a value to them, either perceived or real.

Instructions:

After reviewing the “Action Steps” to implementing this strategy, enter the name of the person who will be assigned ‘Ownership’ of each step and ‘By When’ it will be completed.  It is very important to delegate appropriately and set realistic dates for completion. When you are done, print this template, sign and date it, and give a copy to each person listed under ownership. Now you have all agreed to hold each other accountable. You should also discuss progress at your regular weekly managers meeting.

Up selling and Bundling Implemetation

Action Steps Ownership By When
1.   Review past tee sheets to identify soft times to be targeted with Bundled Specials.
2.   Review your rate structure and decide on what to bundle into a package that guests would perceive as a value.
3.   Create the appropriate tracking mechanism for the packages that are sold. This is very important!
4.   Set a commission plan or incentive structure for your front-line team.
5.   Meet with your team to explain the program, their roles and the ownership they need to take to make this strategy work, how to ring it in, and what the incentive or contest will be.
6.   Observe employees as they begin up-selling and provide feedback on their technique. Decide each week on what the item to be up-sold will be.
7.   Review results daily and provide feedback – either praise or make adjustments.

 

Without question this is an employee-driven initiative.  They need coaching and focus to ask every guest if they would like the special and be properly rewarded and recognised when they are successful. When training your employees, be sure to demonstrate how they are doing the guest a service by offering the bundled opportunity.

McDonalds receives a lot more ‘no’ than ‘yes’ answers but the ‘yes’ adds up to millions of dollars every year. For instance, if your course is doing 40,000 rounds per year and you simply up-sell a $2 bag of tees to every player (receiving a 20% ‘YES’ rate), this would equate to $16,000 in added revenue.

How are you communicating with your various target markets – including the local market of potential customers and your existing customers? We can help by suggesting ways to improve your communication methods  Click here to contact Mike Orloff

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