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E-Newsletter Archive: November 2001

IN THIS ISSUE:

The first research project to analyze alternative golf facilities is under way.
Turn the seasonal slump into a moneymaking opportunity by creating golf gift packages.
Get a first look at what’s inside the November/December issue of Golf Range Times.

Research Project to Analyze Impact of Ranges
Golf 20/20, the growth initiative of the golf industry started early last year, will undertake the first research project to analyze alternative golf facilities in the United States and their impact on traditional golf courses. Golf 20/20 commissioned Sportometrics, a South Carolina-based golf and sports consulting firm, to perform the study.

Alternative golf facilities include par-3 courses, pitch-and-putt courses, executive courses, courses of nontraditional hole configuration and stand-alone golf ranges. Sportometrics will compile a database of all alternative golf facilities, providing summary statistics by state and region. The study will analyze what makes certain facilities successful and use this information to develop a business model.

Additionally, it will analyze the impact of more than 5,000 alternative facilities on more than 10,000 neighboring traditional courses, identifying the characteristics of golf markets where alternative facilities act as suppliers of customers to traditional courses. Using these market characteristics, the study will identify similar markets where alternative golf facilities can and should be introduced to grow golf.

This research project comes on the heels of Golf 20/20's completion of the first phase of a study that looks at segments of golfers and nongolfers. The study confirms that there are more than 35 million golf participants, with 43 million adults interested in taking up the sport.

This preliminary wave of information was gathered from a survey received from 68,000 American households. Of the approximately 35.5 million golf participants identified, there are

--25.5-plus million adult golfers (age 19 and older)
--12 million occasional golfers (1-8 rounds annually)
--7 million core golfers (9-24 rounds annually)
--6.5 million avid golfers (25-plus rounds annually)
--6 million golf range and alternative facility users
--4 million junior golfers (age 5-18)

Early observations from the survey reveal some new and compelling information. For example, the study emphasizes the importance of structured junior golf programs to the growth of the game and the creation of future core and avid golfers. According to the study, six out of every 10 children and youth exposed to golf through a structured program will grow up to be active adult golfers.

Complete results of the segmentation study as well as the alternative facilities research were published and presented at the 2001 Golf 20/20 conference which was held Nov. 11-13 at the World Golf Village in St. Augustine, Fla. Golf Range Times attended the conference and will report back on the findings in the next issue.

Give Yourself a Gift—Extra Sales From Holiday Specials!
Traditionally, November and December are viewed as the "dark months" by golf range operators. This is because most operators are entering the off-season and sales drop off—some owners even close up shop and call it a year.

But with a little effort and creativity, you can add a lot of brightness (meaning BUCKS) to what might normally be a slow time. End the year with a BANG, not a fizzle. The "gift of golf" makes a great treat for the avid player. So, design special golf gifts for your customers.

Too many operators have gotten into the mode of thinking this way: Christmas gifts = gift certificates. Well, that’s OK, and gift certificates should be part of your menu of items. Gift certificates sell well in $10 and $20 increments—you might even sell some for $50. If you stop there, however, you're missing a real opportunity. Think BIG!

Why not put together a package of products that you can sell for $199? We know what you’re thinking, "How can I get someone to pay $199 for range balls?" Well, you probably won't. And that's why you have to think outside the box.

We found a range that puts together packages for $199 and has sold 160 of them in a matter of weeks. Do the math. That adds up to $31,840!

The key to selling these types of gifts is to create a deal that customers can't pass up—it's got to be "too good to be true," such as having a value that is far higher than what they are paying. You can do this by getting other businesses to throw in products and services that add up to a huge value, but cost you NOTHING.

We know this sounds obvious, but we'll say it anyway: The only way you’ll get businesses to throw in something is if they want to reach your customer. The good news: There are LOTS of businesses that are interested in reaching your customers. Here are just some of the freebies they could offer:

--Golf pros – free intro lesson
--Custom club-fitting operations – free fitting session
--Restaurants – free meals, drinks
--Sports bars – free snack foods
--Movie theaters – free tickets, popcorn
--Golf courses – free greens fees for a foursome (get all the local courses to participate)
--Sporting goods stores – gift certificates

You also have to put in a bunch of valuable offers yourself, such as

--100 buckets of range balls at a low, low price
--100 batting cage tokens at a low, low price
--25 games of miniature golf at a low, low price
--Combo "family pack/pass" at a low, low price
--Free golf glove, hat, shirt, golf balls or other low-cost premiums

We think you get the idea. Use what you’ve got at your facility and offer a high-value package. The package we found includes six rounds of golf at local courses, a free golf lesson, 100 buckets of balls and a few other items. The total retail value is more than $850! The customer only pays $199. That's a deal.

OK, you've recruited other businesses to participate and have developed a really great offer. Now, you've got to get the word out. This is not something that you sell by buying TV commercials. You've got to be really targeted with this offer.

The best people to target are those in your current customer base. You've got to put up signs all over your facility so that EVERYONE who walks in the door, goes to the range, goes to the restroom (men's and women's), goes to the front desk and calls on the phone is aware of this great deal that you're offering. AND, you've got reach them at home either by direct mail or e-mail. If you don’t have a customer database with addresses, then you’ll be limited to in-store activities and local print advertising.

So, there you go. Put together a great package of deals that SCREAMS VALUE and you'll be amazed how many you can sell. Everybody loves a great deal.

One final word: Don’t be afraid that you’re giving too much away—that’s almost impossible to do. The challenge is to figure out how much you can give away—not how little.


A Look Ahead
Be sure to check out the November/December issue of Golf Range Times. Inside this issue:

--A product roundup of ball washers and dispensers
--Tips on securing your facility
--Ideas for renovating the range into a complete learning center
--An inside look at how Sept. 11 affected ranges and what happened when PGA canceled its Fall Expo

Plus, industry news, new products available in the marketplace and a case study of The Academy at WaterChase, a Texas facility with a live-in junior program.


About the Golf Range Times e-Newsletter
The Golf Range Times e-Newsletter is a free bimonthly publication sent to range owners and developers who have provided e-mail addresses. You can subscribe online here.

Don't hesitate to forward a copy of this newsletter to friends and associates or to let them know that they can subscribe at www.golfrangetimes.com.

Have a tip or idea?
Contact Marshall Norton Jr., Golf Range Times managing editor, at 804-272-9100, ext. 112, or by e-mail at marshall.norton@douglasmurphy.com.


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