If People Play Better, They Will Play More
I started working at a golf course when I was 13 years old in the back shop and have been a member of the PGA of Canada since 1990. I have attended so many conferences and gatherings that they all blend into one another. I have talked to people that run PGA’s, own golf courses, work for management companies, teach the game full time, sell golf equipment and/or clothing, entrepreneurs in the business, etc.. For years now the conversation has been about how the “business” is doing. Is play up or down? Is the weather to blame? Is the new generation going to play golf? Are there just too many other pursuits these days? Are we attracting millennials? Is it just a supply problem (too many golf courses)? Are “private” courses going to survive in their current format?
I participate in these conversations, and we go around and around, but I am always hesitant to say what I really think. Sometimes it is just easier to write them down, so here are some of my thoughts:
The big manufacturers of golf equipment need to be involved in the conversation. They have cash flow and they have a big stake in how much golf is played. As rounds go, so goes the sales of disposables, like golf balls and gloves. Also, the health of the game in general will greatly affect their equipment sales and their bottom line. Right now they seem content to count on the baby boomers and golf nuts to buy their equipment. How long will this business model be profitable? For some, the cracks have already started to appear. It has always puzzled me that no OEM (Original Equipment Manufacture) has brought out a product at a different price point. I understand that they would not want to take sales away from their premier lines, but you would think that they could create a “brand” with a different customer in mind. After all, their marketing departments are pretty good at what they do! In my opinion it will be important to have decent, affordable equipment available to the person just starting out in the game, and for the once a week player who doesn’t want to spend the money on the latest and greatest.
#2. Owners and Instructors. This maybe a contentious issue. There are many people out there making a decent to good living teaching golf. I would argue that their clientele is similar to the OEM’s and will not last forever. The exception would be instructors who are running junior academies who make a living through volume and/or parents who are willing to spend heavily on their kids. Owners provide the facility and the tools (in some cases), and in exchange they usually take a percentage of the take. This is a better deal for the owners than they know. A good instructor brings golfers to the facility, creates new clientele and/or members, generates marketing, and increases food and beverage sales. The intangibles that a good instructor brings to a facility are definitely there. There are many instructors that would love to be on the lesson tee more often, but just can’t justify the time given that they are already working 40-60 hours a week at the course. This usually ends up keeping instruction prices high, as the supply is low, and there is enough demand from current golfers. So, in the end, someone starting out has to pay premium prices for good instruction or be satisfied with books and the internet (an awful way to learn any sport).
I strongly believe that we have enough people starting the game each year. The problem is the drop out rate, which is very high. It would only make sense that if they were able to play better, sooner, than the chances of them staying in the game would go up significantly. The main way to do that is to get them more affordable clubs, lessons and green fees. First, we need an OEM, or some other company, to step up and make decent clubs for a decent price. I think there is money to be made in doing so. Then we need owners/managers to realize that an instructor should be allowed to make a living while introducing the game to people of all ages and abilities. What if the owner entered into a salary plus commission arrangement with someone to have them teach the game full time. What if these lessons were given at a very reasonable cost (maybe a third of what is charged now). Even if the owner showed a loss on paper for this, I truly believe they would make more than enough in other departments to cover this. To take this even further, an OEM could create a “Get into the Game” program and subsidize it, so that people could get equipment and lessons in an “all in one” package. The exposure and sales could be a huge win-win.
I don’t expect any of this to happen soon. As a friend of mine likes to say, “it has to get a lot worse before we will see change”.
I just want to be able to pull this little blog out years from now and say I told you so.
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