Tue Jan 26 2010

Golf operators can learn alot from McDonalds

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

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.

Please CONTACT Golf Industry Central if you would like help in devising your own Up Selling and Bundling green fee strategy for your course.

Copyright 2008 Golf Industry Central

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