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INDUSTRY INSIGHT |
TOM'S TAKE | As outing golf business follows the trend of the national economy, course managers and event planners have the option of either accepting the hit they are taking, or working smarter and harder to stay in business. When the economy is good, the emphasis may be on incremental rounds and revenue; in bad times, it's time to focus on short-term, highly visible results. If every course and event in your market is down 20 percent or more, it's up to the event directors and planners to get more than their fair share through three key steps: pricing, promotion and prospecting.
Pricing
Pricing is extremely critical in a down economy. Does you course or organization know what your competition is up to? Call them to see what they are doing to offset price resistance for golf rounds and outings. Check their web sites to see if they are offering discounts, frequent-player privileges, off-peak pricing and other programs. Build a file of your competition, and evaluate what they may be doing that might make sense for your club or group.
Based on your competitive survey, you may want to consider the following:
- Add an afternoon or twilight price point; some courses even offer a 9-hole or 6-hole "Happy Hour" package.
- Develop a frequent-golfers discount program.
- Add a "Member-Guest Price Point"—for every guest that a member brings, they receive a discount or value-added item.
- Add a "Family and Friends" rate, similar to the Member-Guest, again to offer a discount for incremental rounds; a senior and junior price point is also effective.
- Offer a day-play or event package, where one fee includes golf, cart, bag handling, a box lunch, two drink tickets and all taxes. Show how the package represents a substantial discount from these items if added separately. While you won't make your normal margins, you'll increase rounds to offset the discount.
Many courses and organizations may have some of these steps in place, but haven't focused on making them successful. In a tight economy, event directors and planners who develop the best plans and drive them consistently will see results.
Set deadlines for rolling out your pricing. Regularly review your efforts to see what is, and is not, working. Once you've determined your pricing plan, it's time to promote it to get the maximum return on the investment.
Promotion
Promotion is the next step to see how you may increase rounds, members and golfers. Again, it's good to review your competition to see what they are doing. You may consider adding the following to your efforts:
- Feature your specials on your web site. Some web sites have the specials in four-point type on the bottom—put yours on the front page, in a hot link to an e-mail or a secure transaction reservation.
- Make sure the web site specials match whatever advertisements you are running, and have a designated telephone number for the specials, so you can track results.
- On any web site promotion, include your phone number, e-mail and fax to allow a customer to contact you in any way he prefers.
- Develop a brochure highlighting all the price-point specials. Distribute this to golfers as they finish their rounds. Keep it simple, with the emphasis on calling the course for more information.
- Have your bag and pro shop staffers consistently offer a replay coupon for the day of play, or a discount for a return round.
- Contact every high school, college, senior organization and church in your area, offering your course as its official practice and outing course.
- Collect business cards at the pro shop for a drawing for a free foursome or other prize; enter these into an e-mail database.
- Host the chamber of commerce outing, the area hotel sales managers and convention bureau outing and contact large employers to make your course their "official golf course."
Prospecting
Prospecting is an area that most courses and groups would prefer to avoid, but it is more critical than ever in a tough economy. In a crowded field of e-mails, advertising and price-point specials an introductory call makes your course or organization stand out.
How critical is prospecting to introduce and invite groups to your course? In a one-week prospecting effort, Golf Event Managers Association's three-man calling team generated more than 5,000 rounds of outing golf.
Several steps here would include:
- Call all current and past members and planners, to see if they have heard of the pricing and promotional materials and see if they would like to schedule an outing. Invite them over for a round.
- Make sure everyone in the pro shop knows the specials and can take a call and book an outing on the first call. Many sales are lost just because the wrong person answered the phone, or did not return a call.
- Call and visit the front desk, bell desk and concierge of any hotels in the area, offering a promotional price to their guests, and include a commission back to the staffer who sends you golfers.
- Before you call, be sure to write a friendly, upbeat call script, have the ability to check tee-times and pricing and collect credit cards for deposits, and you'll see results.
In tight times, golf may be the first item cut from an individual or corporate budget, so it's important to have every part of the series: pricing, promotion and prospecting to secure immediate results. Working on long-term relationships with prospective members, golfers and guests may apply in a good economy, but when things get tight, directing a focused, aggressive effort to drive results will keep you in business while your competition struggles and makes excuses.
As the golf industry evolves, many event directors and outing planners have seen the ebb and flow of the business cycle, and know that eventually things will turn around. The real winners take matters in their own hands and drive results, even in the worst of times.
Effective marketing in a tough economy helps the directors and planners show results when the market is soft, and positions them for a dramatic comeback when things improve.
Tom Pasha is executive director of the Golf Event Managers Association. GEMA focuses on marketing programs to help event planners maximize membership, attendance and sponsorships and works with golf facilities and merchandisers to increase contacts and business in the tournament golf market. For more information visit www.golfeventmanagers.com or e-mail info@golfeventmanagers.com. |
