PGA General
Manager Dennis
Johnsen has
increased
programs for
juniors and women,
creating new
revenue at Pine
Meadow Golf Club
in Mundelein, Ill.
the bottom line. If you can show that you are
implementing new programs and thinking of ways
to add to the bottom line, then you become
extremely valuable to the club and those making
financial decisions.
“Members want to support their own club and
keep their dollars there. Just give them a viable reason to do so.”
Joe Steranka, The PGA’s chief executive officer,
believes recreationalists still want to play golf and
will frequent golf facilities if barriers such as time,
cost and comfortable programs can be addressed.
Growing Revenues Best Practices
A sampling of ideas, as suggested by the PGA Professionals quoted in this story:
● Make sure your outings are spread out so there is ● Utilize traditionally slow times on your tee sheet
guaranteed income every month. to offer special guest rates or outings.
● Let employees know they need to make
● Open your club to host weddings, receptions,
themselves more valuable by directly
bridal shows and/or business meetings.
contributing to revenue-producing programs.
● Host concerts or other fun activities at your club
● Set benchmarks for your staff that can include
to generate traffic and encourage spending.
sales, lessons, clientele building, personal growth
or progress towards PGA ● Host activities that go along with large sporting
membership/Certification. events such as the Super Bowl or a major
● Conduct clinics to appeal to all member
championship.
categories – beginners, juniors, seniors, families
● Distribute complimentary items such as hot
and couples.
coffee when it’s cold, or bottled water and ice
● Stay flexible in order to respond to the changing
towels when it’s warm.
needs of your customers.
● Host an event for your local Chamber of
● Offer short-course options where
Commerce.
members/customers can play three, five or seven
holes at a lowered rate.
● Host a family golf program where juniors play
with their parents.
● Organize trips to domestic and international golf
destinations for you and your members. ● Offer package rates that include clubs, shoes,
● Offer an All Day Play promotion.
gloves and balls.
● Extend incentives to members who help to recruit ● Reevaluate your product mix so you can make
new members. similar margins from lower price point items.
Steranka also believes PGA Professionals have the training and
experience to lead the charge in
generating revenue in a turbulent
economy.
“All of our studies indicate that
people are still motivated to play
golf,” explains Steranka. “They
may not be spending as much as
they once did on shirts and other
golf merchandise, but they want
to play golf. That’s why programs
such as Play Golf America and the
new Get Golf Ready program are
so important.
“We are working diligently to
hold on to our existing players,
while also introducing programs
to bring new players into the
game. Using the many PGA-branded programs available can
help PGA Professionals grow
their revenues by tailoring those
programs to meet the needs of
each particular facility.”
While the economic gloom and doom receives
much of the attention, Steranka shared some interesting numbers to suggest that all is not bleak for
the golf industry. “Rounds have been relatively
steady the past few quarters,” says Steranka. “In
fact, golf revenues were up two percent in the final
quarter of 2008, but merchandise revenue was
down 2. 8 percent. We saw markets in Texas and
Oregon that had a 6 to 7 percent increase in rounds
played, but the Myrtle Beach area was down.
“The fact is, we are going to face various challenges associated with the economy the next few
years, but The PGA of America and the allied
associations have prepared by introducing several
programs to help PGA Professionals grow revenues
and succeed in this challenging environment.”
The Revenue Generation Process
Jim Koppenhaver, president and founder of
Pellucid Corp., which specializes in tracking golf-industry statistical trends and providing business
solutions for golf facilities, believes generating
revenue is linked to establishing customer relationships. His years of marketing experience with
Kraft Foods and his long association with the golf
industry has helped Koppenhaver develop a proven
four-step process for growing revenues.
Step 1, according to Koppenhaver, is awareness.
Simply stated, this means if you’re going to grow
rounds and revenue, consumers must be aware that
your facility exists. “We conducted 24 local golfer
surveys last year to determine barriers that might
be preventing golfers from playing our clients’
courses,” says Koppenhaver. “The last question on
the survey asks golfers if they knew this golf course
existed. We finished a survey at a well-run facility
outside Chicago, and almost 50 percent of the
