Marketing a golf course, event or your own abilities doesn’t have to be difficult, but many people make mistakes along the way. This can result in decreased rounds, poor participation in tournaments or a stagnant career. Though there are many mistakes that can be made, listed below are the 10 most frequent errors. Avoid these traps, and success should be easier to come by.
No. 10
Doing nothing
A college marketing professor insisted that doing nothing be one consideration for any marketing solution. His point was to not fix something that wasn’t broken. It’s good advice, but most golf course marketing problems aren’t temporary. They require research and action. Procrastination only makes problems more difficult and expensive to solve.
No. 9
No hard data
Marketing demands collecting and analyzing data to spot trends and measure what is or isn’t working. Numbers also must relate to action.
Recently, I had several meals at a golf course where the food portions were huge. So, I asked the general manager about his cost of food sales. He had the data – slightly more than 70 percent. But he wasn’t in control of food and beverage. We both knew food costs should be closer to 45 to 50 percent. But the course developer (and owner) didn’t understand food or golf course economics, yet insisted food be an experience. There are profitable ways to achieve a food-and-beverage experience.
No. 8
No target cost per round
Profitable pricing means estimating all input and overhead costs, then adding your intended profit. In golf, you can then divide this annual dollar volume by your estimated number of rounds (based on past years) to arrive at an average cost per round necessary to cover all costs and deliver a profit. This computation must include other revenue sources and costs, such as for food service or a practice range.
No. 7
Not knowing your true market
An issue with No. 8 is that the target cost per round might not be feasible for a course in your market. If you need to charge $15 more per round than the going rate for courses like yours in your market, then you know you have a problem to address. (See No. 10.) You would need to change the equation – cut costs, add new sources of revenue or attract more or different golfers or something else.
The key is to know your true market. Recently, I consulted with a course that’s charging $40 to $45 per round in a market that’s averaging only $25 to $30. Research showed local golfers would play this course only if given discounts. But golfers from a resort area 20 to 25 miles away were willing to pay the higher rack rate because the resort courses they normally played were crowded. This course needs a marketing plan to attract more of those golfers.
No. 6
Not hiring the right people
People drive effective marketing. It starts with the general manager, moves down to the management team and then to the staff. The top manager doesn’t have to be a marketing expert, but he needs to know enough to make marketing contribute to the success of the course.
Also recognize the need to hire the outside talent that you need when you need it. If a consultant contributes more to the bottom line than his fees, then he hasn’t really cost you anything.
No. 5
Using quick-fix solutions
There are many ways to generate short-term play. However, gimmicks aren’t long-term solutions, and they can damage your reputation and brand position. If you’re going to use coupons, specials or contests, know when and why you’re doing so.
No. 4
Being something you’re not
The classic example of this is the home developer who likes golf and decides to build a development around a golf course. Generally, any new course will attract some attention, but when the honeymoon period ends, the huge question is whether the course is viable in the long term. A golf course can help sell homes, but homes don’t necessarily make for a successful golf course.
No. 3
No marketing plan
If you don’t know where you’re going, then you don’t know if you can get there. A marketing plan needs to be in writing, have a timeline and be measurable.
For example, identify all business targets that represent opportunities for extra play – fund-raising events, corporate outings, golf leagues and social events, which are all group business. Next, prioritize them by revenue potential and create a plan to solicit each to have its event at your course. Being proactive gives you a better chance to schedule events because you can give the coordinator possible dates of the events early enough to accommodate your course’s schedule. When you’ve finished your marketing plan, you will likely have a dozen or more business targets included.
No. 2
Decisions based on emotions
It’s amazing how smart people can invest millions of dollars in a golf course without research when they would never dream of doing the same for any other type of investment. Passion is essential to success in golf, but emotion clouds sound judgment. When you’re building a course based on what you want, be prepared to fund it for an undetermined number of years. Only build a course is in a market that will support it, research shows.
No. 1
No dedicated salesperson
Do you know of any multimillion-dollar business that doesn’t have a dedicated sales force? I can name one – golf, for the most part. In any business, someone has to drive growth. Your general manager, director of golf and other managers have full-time jobs, so if you ask them to sell, don’t expect success. Owners can identify sources of profitable business easily, but who’s going to make it happen? Treat your course like the multimillion-dollar business it is … or can be. Hire and train a dedicated person for marketing and sales. GCN
Jack Brennan founded Paladin Golf Marketing in Plant City, Fla., to assist golf course owners and managers with successful marketing. He can be reached at Jackbrennan@tampabay.rr.com.
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