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Revenue Growth: The surprizing book of green fees

POSTED ON March 2, 2019 @ 9:51 am

 

Chapter One – The Club Director

Every club director requires their club to be profitable.  Every club director should also hold the view that their club provides something other clubs don’t provide, which is a unique course or clubhouse or both. That’s what members and public are supposed to be attracted to, the experience of that uniqueness.

However when it comes to Green Fees the uniqueness theory is thrown out the window and directors tend to do what every other golf club director does. The Green fee (one of the main assets of a club) is discounted to the nth degree.

This has a negative effect on golfers. There is no real uniqueness to the club or course if the price to play is the same as down the road.  Cost shouldn’t dictate if golfers want to play or be part of the club. And what is the point of going to all that trouble of making your course and club unique if the price that is supposed to reflect the uniqueness is slashed beyond recognition?

Chapter Two – The Club Manager

Every club manager is hired to make their club more profitable, however growing the club profitability can come to a crashing halt right here. A few managers don’t have autonomy to try new ideas without running it past the directors of the club.

Not even a 17% decline in golfers playing courses in some regions is enough to allow managers autonomy to make decisions, and I know because I have asked a few and get the same answer…..”let’s run it by the board”.  Meanwhile in between now and the next board meeting the club Green Fees are still being sold at alarmingly high discounts and the club continues to throw away revenue.

Managers know they are competing for golfers attention, even with driving ranges these days and need autonomy to fight a good fight. They also need the right tools. Using a discount without a reward is like using a knife without a fork. You would need an increase in rounds sold of around 33% to get back the lost revenue from discounts. Or you could let managers use a new tool available which is the reward. A discount and a reward, now that’s a powerful weapon to attract the right type of customers who spend. If a discount works brilliantly with a reward and a knife works better with a fork then Golf Surprize is the fork of a lifetime!

Chapter Three – The Golfer

Every golfer wants a unique experience. Every golfer wants a challenge. Every golfer wants fun. Every golfer wants value. A Green Fee price to a golfer is secondary to the other wants that golfers need. Some golfers would happily pay millions to have a game of golf at Augusta with Tiger Woods. It’s not the price that gets players it’s the perceived value in the experience. Does the price include something unique and fun?

And with golfers for whom price is the determining factor, there is no extra money to spent once they are at your club. They’ll pick up broken tees rather than buy a packet in the pro shop. Sandwiches are made at home. They have the money, make them spend it.

When a course has work going on all over the place, or crowded, or not looking it’s best, then you could give away the round for free and golfers would still complain, so it’s not the price they look at it’s the value of the experience.

Chapter Four – A better Way to Structure Green Fees or Run a Sale

The next green fee you discount or the next time you want to discount an item in the pro shop or club consider the customers thought process remembering that a discount is only half the story. What sounds more appealing to you?

Normally its $100 to play but today it’s 50% off. Sounds great but doesn’t this sound better?

Green Fees are nearly 40% off today and all fees include a chance to be rewarded with up to $500 credit to spend in the club for scoring well, losing a ball and other experiences. We’ll also put you in the draw to win a trip to Ireland worth $20,000 and a Callaway Surprize Pack worth $6,000. Other great surprizes included.

What sounds better to you in a pro shop sale?

A shirt normally valued at $80 is 30% off today OR a shirt valued at $80 is nearly 25% off today and includes a chance to be rewarded with up to $500 credit to spend in the shop after your game.

If you’d like more revenue for your club then our common sense approach works every time. There are no contracts and no out of pocket expenses for the club. All you have to do is be willing to make a decision.

Click here for more info or contact Anthony Robinson on (+61) 0400 600 293 or Anthony@golfsurprize.com

 

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