| |
The most serious economic downturn since the Great Depression has created
very difficult conditions for golf courses all over the country and in particular,
hard hit areas such as Florida, Arizona, and Nevada. In these three
states, tourism has slowed significantly and the consequences could be devastating.
These states depend on the winter travel season for a major portion of their
yearly revenue. Unless new and innovative ways are found to generate more
participation in the game of golf, many courses could fail.
One of the biggest hurdles for course management to overcome is the
inability to accept change. Its very natural to get into a comfort zone and
maintain the mind-set that things will eventually get better once the economy
turns around, but this time it may be a long wait. Sometimes
old habits die hard, but in order to survive, in what many are
calling the second Great Depression, management must think outside the box
and create more incentives for participation in the game. Remaining
lethargic can lead to bankruptcy in the present state of the economy.
The key to success, especially in this kind of economic environment, is a much
more aggressive approach in the way of doing business. Course management
should recognize that it isn't enough just to keep a golf course in good playing
condition, players should be given more than one good reason to play the course.
One of those reasons, especially in a poor economy, is less expensive greens fees.
With the real rate of unemployment at nearly 18%, unless management recognizes
that $100 to $300 greens fees (in areas like Las Vegas and Phoenix) are too high,
revenues will continue to slide.
Besides lower greens fees, new methods must be initiated to create more interest
in the game, such as: lower lesson fees, more amateur tournaments, reduced
club membership dues, more competitive equipment prices, enhanced web-sites,
discounted golf packages, better customer service and more creative promotions to
attract new business.
PGA Golf Instructors can promote class lessons at reduced rates. Many
new players are intimidated by one-on-one golf lessons and may be more
inclined to participate in group lessons. There is a major need for more flexibility
in rates and golf programs.
Many private clubs have opened their courses to the general public. The
change may not go over well with club members but in order to remain solvent,
the change of policy may necessary. Once again, more flexibility is required.
There needs to be more amateur tournaments for amateurs. There
aren't enough club sponsored scrambles or skins games. Courses have become
too income oriented, not placing enough emphasis on the needs of the average
golfer.
Very few courses have membership fees that are financially within reach.
Membership fees in general, have long been to the point that only the wealthy
can afford to be club members. These fees need to be readjusted so that they are
within the reach of John Q Public.
Equipment in most pro shops is priced at full retail, prices are not competitive.
Why should a consumer pay full retail in a club pro shop when they could easily
purchase the same product at a discount on the internet or discount outlet . Prices for
equipment in pro shops need to be reduced in order to generate more revenue.
Here once again, old habits die hard.
Finally, golf courses need to promote not only their own course, but the game
of golf in general. In todays climate, new customers (golfers) cannot be left to chance.
Courses have to go after potential players and make believers out of them. They have
to create enthusiasm, not only among newcomers but also with seasoned players.
In order to remain profitable and move forward in a very sluggish economy,
course management must make necessary and positive changes in the way
their business is conducted. These changes will not only benefit the course,
they will benefit consumers and most importantly, the game of golf itself. |
|
