TopGolf Opens First U.S. Game Center
TopGolf USA has acquired Mid-Atlantic Golf Center-Kingstowne and is opening its first game center on the Alexandria, Va., site.
 Created by British company World Golf Systems, TopGolf is a point-scoring game that uses golf balls fitted with microchips. From the tee line, players aim at 11 sensor-equipped target greens situated 25 to 240 yards out, and distances and scores achieved by each shot are instantly relayed to a screen in each player’s bay.
More than $3.75 million will be invested to convert the Kingstowne driving range into a TopGolf Game Centre, which will open this spring with 78 heated and covered bays on two levels, a café-bar area, conference room, retail outlet and a TopGolf Academy.
Plans for additional TopGolf centers in Chicago, Atlanta and Dallas are in the works.
PGA Publishes Beginner Manuals in Spanish
The PGA of America’s First Swing Program manual, First Swing for Juniors, is now available in Spanish. The organization also will distribute a Spanish text of Summary of the Rules of Golf. Making these introductory materials available in Spanish supports industrywide initiatives to attract and retain more golfers in the bourgeoning U.S. Hispanic population, PGA reports.
The publications are available at www.pga.com.
Report Shows Rounds Up in 2004
Rounds played finished in positive territory in 2004 for the first time in three years, as reported by the National Golf Foundation and the National Golf Course Owners Association. Although the gains were slight (0.7 percent nationally), they represent welcome relief to the declines of the prior two years.
The Florida hurricanes left the Gulf Coast region in a lurch (down nearly 5 percent), but an otherwise strong season enabled the Central/South Florida region to finish the year up about 1 percent. The Mid-Atlantic region posted the highest gain for the year (9 percent), primarily because the region’s rounds were down 13 percent in 2003 because of record precipitation levels.
For the full fourth-quarter report, visit www.ngf.org or www.ngcoa.org.
Pricing Strategies: Are You Leaving Money on the Table?
Finding the right price point to optimize profits from range ball sales is one of the hardest decisions a golf range owner makes. But it doesn’t have to be so difficult. When the pricing strategy is sound, the decision becomes more clear and easier to make.
Beyond the Competition
The standard approach to pricing at ranges, as with many businesses, is to set price based on what the competition is selling buckets of balls for. Competition is a consideration, but it should not be the sole determining factor. By setting your prices to meet or beat the competition, you may be missing out on extra sales and profits.
The first factor to consider is your demographics. How would you describe your customers? Are they well-to-do, or price sensitive? Do they appreciate good service, better-looking range balls and green grass tees? If so, they are probably willing to pay more for those niceties. The profit margin on these types of sales is better than on lower priced, higher volume sales.
It’s usually a good strategy to position your facility as the premium range in the market (the best range). Of course, if you’re going to lead the market with the highest prices, then you have to deliver on the services and products that match what you charge.
Volume Discounts
“The more you buy, the more you save” is another common pricing practice. There’s a reason this tactic is popular—it works! Some range owners just cannot get themselves to charge less than the single bucket price, their maximum price. These owners fail to grasp the concept of customer loyalty—locking in customers and getting them to come back.
But how far do you take your volume discounts? At what discount level do you sell your cheapest bucket or token? It generally takes a savings of 15 percent or more to get people to move from one purchase level to the next. For example, if you sell one bucket (or token) for $5, you would likely have to sell two buckets for no more than $8.50 total to get customers to upgrade from one to two. And then, you need to discount from the two-bucket price to get them to move to four or five buckets at a similar discount level (i.e., 15 percent off the two-bucket price). This results in a five-bucket price point of $18, or $3.61 a bucket. So now you’re at a 28 percent discount versus the single bucket price.
You can see how volume discounts can quickly bring down net sales, so be careful not have too many different price tiers that increase the discount too quickly. As a general rule, you should never offer volume discounts at any more than 50 percent of the single bucket price. And the volume purchase at this high discount level should be very, very high—like 100 buckets. This price point is intended to capture your heavy users who are much more price sensitive. So give ’em a deal, but make them buy a lot at that price.
Numerous price tiers also make it difficult for customers to make a decision. If they have to work too hard to make the comparisons and do the math, then they’ll choose the safer, easier option and end up buying less that day. Make it easy for your customers: Include a savings statement on your menu board that shows how much money they’ll save by buying more. This comparison should be made against buying the same number of buckets at the single bucket price, which makes the strongest savings statement.
Breaking the Slump
Give sluggish batting cage sales a needed boost by implementing marketing strategies that get families, youth and teams out swinging. Read the March/April issue of Golf Range Times to discover what industry veterans say works best.
Be sure to check out these other features in the
January-February issue: |
The Only Directory You'll Ever Need
The 2005 edition of the Golf Range Times Buyers’ Guide and Directory is hot off the presses. It’s the only directory published exclusively for the golf range industry, and the one resource you’ll refer to all year long as you make important purchasing decisions. More than 180 alphabetical company listings are cross-referenced by product category, making it easy to find the equipment and services you need. In addition, the directory includes information on purchasing large equipment such as pickers and washers and what various suppliers offer, as well as a checklist outlining smaller equipment needs. All Golf Range Times subscribers receive a complimentary copy of the directory. To purchase additional copies for $35 each, download an order form here.
Sell Used Equipment Fast
Golf Range Times introduces Range Exchange: a new classifieds service for readers. Got pickers, washers, balls, mats or tee dividers taking up space? Convert them to cash with a classified ad. Special low rate for range owners: $50. Plus, we'll help you extend your reach by posting your ad online at www.golfrangetimes.com-for free! Contact Sally Schall, advertising representative, to place your ad in the May/June issue. Classifieds are sold on a prepaid basis only.
Back Issues Available
Missing an earlier issue of Golf Range Times? Or looking for reference articles on adding amenities, insuring your facility or hiring qualified and committed staff? Click through all back issues of the magazine to find these topics and more here.
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.
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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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