Range Use Rebounds in 2003
The number of alternative participants (exclusive short course or practice range users) increased 14 percent to 5 million in 2003, according to the National Golf Foundations recently released "Golf Participation in the U.S., 2004 edition." Though this was an increase from 2002, it remains below the 6.9 million alternative users reported in 2001. The number of core golfers grew for the second straight year, from 12.6 million in 2002 to 13.2 million in 2003. Core golfers, who on average play 37 rounds per year, are defined as adults (ages 18-plus) who play a minimum of eight rounds per year.
Looking at other golf participation segments, occasional golfers (one to seven rounds per year) increased 4 percent to 14.2 million in 2003, and juniors decreased 10 percent to 5.5 million. Total golf participants (comprised of core and occasional golfers, alternative participants and juniors) increased 3.3 percent to 37.9 million in 2003, an all-time high, according to NGF.
NGF attributes most gains in participation to females and juniors, groups that are seen as having good potential for future growth. The number of female participants has increased by 1.4 million since 2000 while the number of juniors is 1.5 million higher. These numbers (which overlap somewhat) include many occasional golfers and those who go exclusively to practice ranges or short courses. For a complete look at golf participation in 2003, contact NGF (e-mail) for a copy of the full report.
AstroTurf Maker Closes Shop
Southwest Recreational Industries, the Leander, Texas-based manufacturer of AstroTurf, filed for Chapter 11 bankruptcy in February. According to news reports, the company plans to sell two smaller divisions that manufacture sports flooring and equipment for volleyball, gymnastics and basketball, and it will shut down its operations for football and baseball turf and running tracks. Plans for SRIs golf division were unavailable at press time. In court documents, SRI reported debt of $88.1 million and assets of $101.9 million.
Golf 20/20 Releases Annual Industry Report
Golf 20/20, the World Golf Foundations initiative focused on the growth of the game, has published its third annual industry report. Using information on facility development, rounds played, interest and participation, the report looks at the state of the game at the conclusion of 2003.
Among the reports findings:
The decrease in rounds played from 2002 to 2003 was 1.5 percent, just half the decrease from 2001 to 2002, indicating that as the economy rebounds, rounds played can be expected to rebound also.
There were 37.9 million participants in 2003 and 27.4 million golfers, both all-time high numbers. ("Participants" includes junior golfers and those who use only short courses or golf ranges.)
The pace of golf course development has slowed in reaction to the marketplace. Fewer golf courses are being planned and opened than at any time in the past 16 years.
The number of occasional, core and avid golfers increased in 2003, but core and avid totals remain short of all-time high levels.
Both research and recent trends indicate that women participants in the sport represent the most significant opportunity for future growth, and that golf must focus on reaching ethnic minorities, where interest has grown tremendously over the past seven years.
"In 2003 we began to see some positive signs that have continued through the first quarter of 2004, so we are optimistic that golf is trending in the right direction," said Ruffin Beckwith, Golf 20/20s executive director. "But as we continue to work together as an industry to ensure golfs long-term vitality, we have to do a better job in two primary areas. We have to meet the needs of our current players in ways that encourage them to play more. And we have to reach out to previously underserved demographic segments of our society, which remain our most abundant source of new players."
For the complete findings, download "The Golf 20/20 Industry Report for 2003" (PDF).
Program Develops Golfers One Bucket at a Time Dicks Divot Driving Range in Eau Claire, Wis., is offering a Bucket-a-Day program in hopes of developing young, aspiring Chippewa Valley golfers. Through the program, children age 5 to 15 receive an official "Bucket-a-Day" card that entitles them to a free bucket of balls every day through Sept. 1; no other purchases are necessary. Children younger than 12 must be accompanied by an adult and only the card-bearer can hit the free bucket of balls.
Perform a Midyear Checkup to Boost Year-End Sales
Half the year has passed, and most operators are still in the prime part of their season. So, hows it going? Are you hitting your numbers? Are sales and expenses playing out as planned? It wont be long before the kids go back to school, the golf clubs get stored in the garage and football season starts. Make adjustments now while there is still some good money to be made.
Hard as it may seem to do, now is the time to take a quick check on progress and make adjustments to maximize your profits. Most facilities are really hopping, so the thought of dropping things to do a little analysis sounds impossible. But investing the time to do this will be well worth it. At this point, you can still make changes that will affect profits for the rest of the prime golfing season. If you wait until after Labor Day, when things slow down, it will be too late.
Track Your Progress Your first task is to update your annual sales projections; this is more effective if youve made sales projections going into the year. The critical question is, "How are you doing in comparison to your projections/budget?"
If sales and cash flow are on target, then theres less work to do. If sales are below budget, figure out why.
Is it the weather?
Are fewer people coming? (Look at your number of daily transactions.)
Are customers spending less? (Look at average dollars per transaction or visitor.)
If you know why sales are lagging, then you can develop plans to boost them.
Essential to this exercise is being able to evaluate the effectiveness of your marketing tactics. You should be tracking the results of your programs. If something is not working as planned, nows the time to drop it and try something different. Dont throw good money after bad.
Plan Ahead
You know how the first six months went. Now project sales and expenses for the next six. Adjust your plan to deliver a cash flow thats acceptable to you.
Making decisions on how to save money is difficult. Should you cut your marketing, or stretch those range balls a little further and delay a major expenditure? Tough call. Avoid the easiest temptation, which is to cut spending on marketing.
The marketing budget is an easy target because it is usually a fairly large number. But it is also (or should be) an investment that generates more in sales than it costs to implement. Opt for other money-saving choices like deferring maintenance until cash flow improves. You must do major maintenance, but you can defer minor projects.
If you find yourself in a situation where youre forced to cut your marketing budget for the rest of the year, then use these low-cost strategies to increase sales:
Focus on getting more dollars from every customer who walks through the door by training cashiers to upsell.
Provide over-the-top customer service. Retrain and reenergize your staff and make them aware of how important it is for them to serve customers. Provide incentives for employees to achieve your objectives, such as free movie passes or staff bonuses.
Give customers a "bounce back" coupon offering a buy-one-get-one deal or half-price bucket of balls to get them to come back an extra time.
Send an e-mail newsletter to your customer database that includes a golf tip combined with a coupon or reason to visit your facility soon. If you dont have customers e-mail addresses, send postcards, which are less expensive to mail and more likely to be read than a flier stuffed in an envelope.
Take a good look at your business progress to date. Determine whats working, and do more of that. Stop doing things that arent working. This sounds like common sense, but its easy to forget about the basics when youre busy.
PGA Fall Expo Returns to Vegas
Returning to the Las Vegas Convention Center Sept. 20-22, the 2004 PGA Fall Expo will offer an expanded schedule of events:
Attendees in the exhibit hall can visit with more than 300 golf-related exhibitors; try out products at the Equipment Testing Center; preview new apparel in the Fashion Parade; browse through the latest wares in the New Product Center; and relax at the 19th Hole.
A complementing educational conference will offer more than 30 professional development opportunities within six tracks, including advanced retailing, growing the game, marketing and promotion, merchandising, personnel and service, retailing basics and technology.
The evening before the show, Callaway Golf Center will play host to a demo night from 5:30 to 8:30.
Buyers can register and make travel and hotel arrangements online or by calling 800-840-5628.
Fun Expo Offers More to Explore
Riding on the success of last years inaugural Paintball Pavilion, Fun Expo has added two new pavilions for the 2004 show, Sept. 30-Oct. 2 in Las Vegas. The Party Pavilion will group suppliers of party goods and services in a central location and feature live demonstrations. The pavilion will be complemented by party-focused seminars at Fun Academy, which starts Sept. 27 and runs through the show. This years lineup includes beginning and advanced programs from Frank Price, founder of Birthday University, plus "Parties 101," "Entertaining Young Ones" and a special three-hour session, "Party Magic." Laser Tag moves into the limelight with a new Laser Tag Pavilion featuring demonstrations in addition to a preshow Laser Tag Education Day and a 90-minute Fun Academy session.
Exhibits and sessions also will provide information on food and beverage operations, inflatables, play structures, miniature golf, redemption systems, design and construction, computer hardware and software and more.
Fun Expo is sponsored by the International Association for the Leisure and American Amusement Machine Association and will be co-located with the Amusement & Music Operators Association International Expo.
For a complete list of upcoming events in the golf industry, check out the Industry Calendar on Golf Range Times home page.
Designing Natural Grass Tees With Function and Form
As the industry has matured, range developers and owners are finding that more golfers are looking for quality practice facilitiesand are willing to pay for that quality in the form of better range balls, short game practice areas and most of all, grass tees. Read the July/August issue of Golf Range Times for expert advice on constructing and maintaining a high-quality natural grass teeing area that attracts serious golfers.
Be sure to check out these other features in the May - June magazine: |
Call for Entries: 2004 Best New Range Award
This January, one outstanding range will be named Best New Range of 2004 and earn industry-wide recognition when its story is told in Golf Range Times. Enter your range in the 10th annual Best New Range Award contest to be considered. Ranges that opened or underwent major renovations after Sept. 1, 2003, and that operate as the primary business (revenue generator) of the facility are eligible to enter the 2004 competition. All candidates must complete an entry form and submit photographs and other materials to illustrate the achievements of the new facility. The winner and runners-up will be announced in the January/February 2005 issue of Golf Range Times and on www.golfrangetimes.com. Deadline for entries is Oct. 5.
The Only Directory Youll Ever Need
The 2004 edition of the Golf Range Times Buyers Guide and Directory is now available. Its the only directory published exclusively for the golf range industry, and the one resource youll refer to all year long as you make purchasing decisions. Alphabetical company listings cross-referenced by product category make it easy to find the equipment and services you need. All Golf Range Times subscribers receive a complimentary copy of the directory. Additional copies are $35 and can be ordered online here.
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.
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.
© Copyright 2006 Golf Range Times
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