Tue Jun 28 2011Golf 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
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Action Steps |
Ownership |
By When |
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1. Review past tee sheets to identify soft times to be targeted with Bundled Specials. |
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2. Review your rate structure and decide on what to bundle into a package that guests would perceive as a value. |
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3. Create the appropriate tracking mechanism for the packages that are sold. This is very important! |
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4. Set a commission plan or incentive structure for your front-line team. |
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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. |
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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. |
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7. Review results daily and provide feedback – either praise or make adjustments. |
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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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Multi-course operators like ClubCorp and American Golf have access to a pool of shared knowledge and expertise. This results in cost-effective policies and procedures that can make all the difference to an individual club's success. Now Mike is offering the experience, knowledge and tools he has gathered over almost two decades in the USA and Australia to stand-alone clubs throughout Australia, New Zealand and South-East Asia. The programs and systems Mike helped develop for Australian golf facilities over the past several years have resulted in positive outcomes for properties he managed including: Lakelands Golf Club, Robina Woods and The Colonial on the Gold Coast; North Lakes in Brisbane; Horizons Golf Resort on the NSW Central Coast; and Club Pelican on the Sunshine Coast. Currently Mike lectures for the PGA International Golf Institute and writes articles on golf operations and other industry topics for Inside Golf, Golf Inc, Asian Golf Business, PGA Magazine and various other publications around the world. (Click to see Mike’s Resume) Contact Mike or (+61) 415 682 259 Articles by Mike Orloff
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Mike Orloff is an Operations and Marketing Specialist with current US and Australian PGA Membership status. He has 20 years of experience with two of the biggest international golf management companies - To read the new Golf Industry Central online magazine look below and click on it to enjoy it in full size.
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