Shortsightedness Winning Again

I don’t know Robert Vasilak personally, but I’ve just become a fan of his work. While he certainly put a positive spin on his most recent Golf, Inc. article, even entitling it “Let the Good Times Roll”, I couldn't help but sense an early warning. The standout sentence in the article, in my opinion, wasn't the revelation that Shadow Creek now costs $1250, Pebble Beach $625, and TPC Sawgrass $650 (or the fact that private clubs are asking for initiation fees ranging from $500K to over $1 million). There will always be those with deep pockets. However, it was the line that stated, “the majority of golfers can’t afford… those clubs. But even where they do play, $60 is the new $35”. This couldn’t be more accurate. At my local public course, $50 rounds now cost $79.

So, what does that mean? Instead of playing weekly, I now go every other week and spend more time at the driving range (unless one of our wonderful new or prospective clients invites us out, in which case, it's just business!). With a background in marketing, I understand one of the biggest pitfalls is pretending you represent the customer when you don’t. But in this case, I am certainly the typical customer!

I understand the “why” behind Robert's point about the increase in costs - investment into the venue. That’s natural, and I'm a big fan of anything that improves the customer experience. However, what seems to be missing is the underlying risk that appears to be ignored. There's an over-optimism that patrons will always come, will always be there, and will always want to play, even at an increased price. The assumption is that the lack of supply versus increased demand will always win out. But what if demand decreases? Forecasts get blown up, courses shut down, or become neglected, and our already stressed-out General Managers face the risk of getting replaced.

In addition to significant capital expenditure investments, operational efficiency is another way to enhance the customer experience without the huge upfront risk. It also helps General Managers manage the influx of demand now, and more importantly, prevent that demand from dropping off as prices rise.

I’m all for courses maximizing their revenue. But like anything, there's a natural price sensitivity curve, and CourseIQ can help these venues extend the peak further down the price axis without requiring millions in literal ground-breaking investments. General Managers, let us help you make your job easier and set you up for success well before any drop-off in participation inevitably occurs.

See you on the tee box (just maybe not as frequently?)!