PGA Best Practices: Blog

Use Member Reward Programs to Benefit Your Members and Your Golf Shop

Today’s PGAmagazine.com Blog moderator is PGA Professional Chadwick Bain. Chadwick is the PGA head professional at Findlay (Ohio) Country Club, was the Northern Ohio PGA Section’s Toledo Chapter Golf Professional of the Year in 2004, and was the Toledo Chapter president from 2004–06, during which time he sat on the Northern Ohio PGA Board of Directors.

When I became the PGA head professional at Findlay in 2005, I launched the Member Rewards Program. The program has been very successful at generating revenue early in the season, maintaining a healthy profit margin and, most importantly, providing the best possible service to my members.  Recently it has even provided the added bonus of allowing me to forecast my sales during challenging economic times.

In 2009, the Member Rewards program consisted of:

• Par Level – The member pre-purchases a $100 gift certificate early in the season and is entitled to a 10-percent discount on all purchases made that season
• Birdie Level – The member pre-purchases a $500 gift certificate and is entitled to a 15-percent discount on all purchases made that season, as well as a complimentary clubfitting or equipment analysis, a $100 value
• Eagle Level – The member pre-purchases a $1,000 gift certificate early in the season and is entitled to a 25-percent discount on all purchases made that season, as well as a complimentary clubfitting or equipment analysis using our VectorPro launch monitor, a $150 value

I have 250 members; about 40 percent of them participate in the program, which generates about $75,000 in March of every year.  This year may have been down 30 percent, but it was still great for cash flow early in the year.  Apart from allowing me to be much more competitive with my pricing, the program lets me focus on those members who are active golfers and spending money in the shop.

As a seasonal operation, I find that after a long winter, people are very excited about the upcoming season.  I attempt to capture that interest and it is important to get that member to sign up early.  The end of March is typically the deadline for joining the Member Rewards Program, and the discounts and gift certificates are valid until Thanksgiving Day.  The member’s discounts can be added to any other sale offers throughout the season.

The program certainly helps me with my initial cash flow, generating a lot of money up front and allowing me to take advantage of all the discounts possible on the merchandise I bring into my store.

This year, more than any year in the past, the program has made it possible to indicate who my customers will be.  Our shop is no different than most other shops at private clubs, where 20 percent of the members account for 80 percent of sales.  My members’ level of participation is telling me “I am committing to spend this much,” and that has allowed me to forecast what I am going to sell.  Other golf professionals might say, “It’s going to be a tough year, but sales may be up.”  Member participation in this program pretty much dictates what my sales will be.  So when I call a rep and scale back an order by 30 percent, and the rep asks why, I can say, “I can tell you what my sales will be because my members have already told me.”

The program also identifies my customer base.  I’ve got a couple of members who wear XXXL golf shirts.  But if they don’t even sign up at the Par Level early in the year, I know not to even stock any XXXL golf shirts.  To take that further, we maintain a database with the members who enroll – sizes, brand preferences, etc. – allowing us to better predict what we need in stock.  It’s not just the member’s $1,000 gift certificate and 25-percent discount. If the member spends over $1,000, they still get the discount.  And I have members who spend $3,000 or more, and they do that because of their discount.

All of these things allow me to maintain my profit margin, minimize the amount of merchandise I need to carry, and provide the best possible service to those members who use our golf shop.

Clubfitting and Set Makeup

Today’s PGAmagazine.com Blog moderator is PGA Professional Dennis Johnsen. Dennis is the 2008 Illinois PGA Section Merchandiser of the Year for Public Facilities, and is the PGA general manager at Pine Meadow Golf Club in Mundelein, Ill.

Much has been written in regards to the importance of clubfitting, but set makeup and its relation to the fitting process is not as widely discussed.  What is surprising is the fact that so many serious players have not spent much time considering the makeup of their new set.

At Pine Meadow Golf Club, almost as much time is spent determining the makeup of the set as is spent on fitting the clubs.  While going through the fitting process we often discuss where the golfer plays and the lengths that concern him or her, and especially the lengths of the par 3s that the golfer normally plays.

Once the fit is determined, we transition to set makeup, using what the golfer has told us about those lengths. We start with a discussion of how far the golfer hits the driver, and then talk about the longest iron the individual is comfortable hitting. We then zero in on the yardage gap between these two clubs.  We do the same at the other end of the set as well, where we find out the loft of the golfer’s pitching wedge and how far he can comfortably hit that pitching wedge.

Once we have these distances, we go to work on the gaps.  This is where the process gets interesting, because different golfers have different preferences: some players like fairway woods; some prefer hybrids. Some players like to carry only one extra wedge, while others prefer more wedges and fewer long clubs. In our experience, the course that the golfer plays most often is the most important factor in determining the best makeup, and we go to the point of making sure that the golfer has the correct clubs to play each of the par 3s on that course.

But out of all the things we do when it comes to set makeup, perhaps the most important is merely bringing the subject up during the fitting process, causing golfers to think about what clubs they need. We have found that after a couple of weeks, a golfer will actually return to the shop and order extra clubs so that he has the capability to change the set makeup when playing other courses.

Adding Value: Sometimes, it’s the Thought That Counts

Today’s PGAmagazine.com Blog moderator is PGA Professional Dave Harner. Dave is the PGA director of golf at French Lick Resort in French Lick, Ind. He has held that position for over 20 years, and has worked at French Lick since 1976. He is the winner of the 2004 Indiana PGA Section Merchandiser of the Year for Resort Facilities, and is also the coach of the Springs Valley High School Golf Team.

There is no way that any of us, as business people, will supply added value items, such as arrival gifts, that are of greater value than the fee the guest is paying. And none of our guests really expect that from us. However, by putting some thought into the type of gift that not only enhances the experience, but also creates conversation, you move your facility up the list of potential places to play in the minds of all golfers.

Just two weeks ago we opened the new Pete Dye Course at French Lick. We have adopted a concept for that course that is original and untried in our region. It is a high-end golf experience with a $350 price tag, plus caddie fee. The course is gated and very private, open only to resort guests. To enter the gate you must have a tee time. We wanted to find an arrival gift that would be unique to the area and that a guest would appreciate. We picked a small cigar company in Kentucky called Kentucky Gentleman Cigars and went to work. They did a custom cedar box (cedar is native to our area) and in the box we placed four of their premium cigars, four logoed shot glasses, a logoed cigar cutter, logo matches, and a bottle of Blanton’s Bourbon; a high-end, 101-proof Kentucky Bourbon. So far, the reaction to the gift is overwhelming and so in character with our region. We have even had some cigar magazines call us to get the scoop and run a feature on the concept!

Since our resort is in a remote area of southern Indiana, and the major portion of our drive-in business was from Louisville, Ky. (65 miles), Indianapolis, Ind. (100 miles), or Evansville, Ind. (85 miles), we found it difficult to attract those who will drive here to play golf on a regular basis. To combat this situation, we started promoting a 36-hole, all-day rate, that included a lunch coupon. Since we are a Resort, with Casino, the round of golf has grown into a one-day mini-vacation where the players can golf, eat, golf again, do some gaming and still be within driving distance of home. This promotion has gained our courses thousands of additional rounds per year, as well as food and beverage revenue. Our price was based on 18-hole rate, plus lunch and no charge for the second round.

It's U.S. Open Week at Bethpage Black

Today’s PGAmagazine.com Blog moderator is PGA Professional Joseph Rehor. Joseph, the 2002 Metropolitan PGA Section Merchandiser of the Year for  Public Facilities, is the PGA head professional at Bethpage State Park Golf Course in Farmingdale, N.Y.

What players can expect heading into this year’s U.S. Open at Bethpage:

Like most past U.S. Opens, I foresee even-par being the score to beat. In 2002, which was the last Open we hosted, Tiger was the only player under par at 2-under-par; this year I can visualize a winning score of over par. It is probably going to be the most demanding course setup ever for the Open. 

The patrons who come to Bethpage wanting to play the Black Course from the tips, the way it’s set up during the Open:

U.S. Open, or no U.S. Open, we get people coming in all the time wanting to play the Black Course from the tips. People love to beat themselves up, what can I tell you? I’m 63 years old – you know where I want to play it from? I want to play from the ladies’ tees. But we get that every day; everyone wants to be a great player and to be able to say they shot 85 from the tips, with 10 mulligans.

How the U.S. Open affects Bethpage merchandise sales and the merchandise sales of other golf professionals in the region:

We’ve been selling USGA/U.S. Open merchandise for the past five years. It has definitely increased sales, and I would say that we’ve sold thousands of shirts with the U.S. Open logo. I would assume that our sale of Open merchandise has indeed adversely affected sales at clubs around me. I’ve seen members from surrounding clubs come here and purchase six to eight shirts at a time. For me the Open has been very beneficial, as it can be for any golf professional who is able to host a major championship. As PGA Professionals, we should all take advantage of PGA Championship merchandise in our golf shops. How do some of you out there who are not in a position to host a major leverage the merchandising opportunities that they provide?

Getting the Most Out of the PGA Trade-In Network

Today’s PGAmagazine.com Blog moderator is PGA Professional Joe Wisocki IV. Joe is a PGA Certified Professional in General Management, is the 2006 Minnesota PGA Section Merchandiser of the Year for Resort Facilities and is now the PGA general manager at Ridge Creek Dinuba Golf Club in Dinuba, Calif.

I’m sure many of us PGA Professionals try to use the PGA Trade-In Network as a tool to increase hard good sales and add value to our golf shops by providing this service to our members and customers. 

My big question to my fellow professionals is: How do you maximize the effectiveness of the PGA Trade-In Network when most of our players have such an inflated view of the values of those clubs they purchased just a few seasons ago when that $400 driver only fetches them a $70 trade-in towards that new $399 driver?

Is this causing a disservice to our golfers or any negative feelings among them when our hopes were to help and to become more valuable to those same customers?

On the bright side, it seems that most putters hold their values better, so trading in putters for a new putter seems to yield a better and more positive result in the consumer’s eyes. 

We have had little success with in-shop pop materials, newsletter announcements and e-mail blasts to our database when it comes to promoting this service.  So I’m looking for some best practices other PGA Professionals out there are using to be successful in the trade-in business.

Any suggestions?

Demo Day Dividends – Establishing new goals

Today’s PGAmagazine.com Blog moderator is PGA Professional Brian A. Crowell. Brian is the PGA Head Professional at GlenArbor Golf Club in Bedford, N.Y., secretary of the Metropolitan PGA Section, and won the 2003 Metropolitan PGA Horton Smith Award. Brian is also an analyst/announcer for NBC Sports, hosts his own radio show “The Clubhouse,” and is the author of “Teach Yourself Visually, Golf.” He is also the web host and an advisory board member of SportsMD.

As PGA Professionals who strive to improve and add value to our facilities, we need to remember that goal-setting is one sure way to secure our jobs for the future. Although no two positions are exactly alike, golf professionals in every Section of The PGA of America likely share the following four general goals:

1. FIND creative ways to keep your members, customers and guests interested and anxious to visit your facility.
2. EXPAND your audience and attract new customers.
3. BUILD a better relationship with your vendors and sales representatives.
4. GENERATE additional sales and increase your revenue.

Luckily, each of the above objectives can be achieved with a single concept … a demo day. But NOT the typical demo day that features one manufacturer, and is scheduled on only one day during the busiest time of the season. By thinking bigger, you can create a very different and exciting event at your club. Here are some valuable tips for producing a successful demo day experience:

• Not everyone will be able to attend on a single day. Dedicate an entire weekend to your event.
• Try conducting your demo days early in the season, when golfers are anxious to break out their clubs for the first time. Some facilities have even had great success scheduling a demo day before their course opens for the season. When not competing with the golf course, demo day can be the “main event” … a great reason for customers to visit the club and “kick-start” the season.
• Invite as many different major manufacturers as your space will allow. Be sure they know how inclusive your event will be, and secure an early commitment from them.
• Advertise your demo days aggressively and “pull out all the stops” to spread the word through all appropriate channels. In addition to your normal list, be sure to invite dignitaries from local associations, local school golf teams and coaches, local media, etc.
• If possible, offer a fitness/stretching/nutrition/wellness component.
• If you don’t own a launch monitor, and no vendors are bringing one, consider renting one for the event.
• Run clinics and contests to spice up the event.
• Offer discounts on purchases made during the demo days.
• Spend equal time with all vendors. Although many PGA Professionals are “on-staff” with a particular company, go out of your way to spend time with each sales rep/technician, try their products, and openly encourage customers to try everything.
• Afraid to take the plunge? Combine forces with other local PGA Professionals and invite their customers to join in! Rotate hosting duties annually from one club to the next.
• Consider options such as a tented area or rain dates in the case of bad weather.

These are just a few of many suggestions that can help you turn a good idea into a great one. It takes a little risk and a lot of commitment, but the rewards of setting higher goals and providing a serious demo day experience can be well worth the investment.