Okay, so those greedy Wall St. types brought down that comfortable little world we once knew. But let’s give credit where it’s due. It’s sure a lot easier – and cheaper – to get a tee time. The doors are open and the deals are flying, even at clubs where it once seemed that the only times ever available were 7 a.m. or 5 p.m.

It’s the same story on the private front. Clubs that previously didn’t take kindly to strangers have opened the ivy-covered gates to their exclusive little kingdoms. One can enjoy the private experience at a relatively bargain-basement price.

None of this, of course, is good news for the golf industry. Discounts and improved access mean more people are playing less or leaving the game for good. We’ve gone from growing the game to trying to save it.

Have we pulled a Y2K and left it too late? Will the cloud of uncertainty burst and drive the game into a prolonged rain delay? Do we simply have a fixer-upper on our hands or are we talking about building Rome in a day?

One thing seems certain – the golf business likely won’t return to the halcyon days it once enjoyed. The consensus is that it will remain flat at best. But even to maintain that status, it will need to change its ways.

A club’s success is built on the basics – knowing your customers and satisfying them, utilizing tee times, focusing on the bottom-line, etc. Lose sight of those basics and the struggles begin. It’s why consultants are a lot busier than course architects these days.

One, Global Golf Advisors of Phoenix, Arizona, and Markham, Ontario, helps clubs get back to the basics. At the core should be a pricing strategy, said company principals Henry DeLozier and Stephen Johnston at the PGA Merchandise Show in Orlando. It’s critical to appropriately price fees and services, with a focus on those that contribute most to the bottom-line – green fees, membership dues and the driving range.

To do that, course operators need to get a clear picture of demand at their course. They need to estimate market support in their area, know their customers and their expectations, and determine whether those expectations are being met. “Measure what matters,” said DeLozier, who puts customer satisfaction at the top of the list, followed by key performance indicators, market demand, dues and fees, labour and cost of sales.

Practice makes perfect

Other best practices recommended by Global Golf Advisors:

· Be open with competitors to find out what and how they’re doing.

· Grow membership counts and balance the demand for tee times.

· Always give people a reason to come back (e.g. play 10 rounds, get one free)

· Offer packages (e.g. golf and lunch) or “bring a best friend” promotions.

· Upgrade, not downgrade, operations during tough times

· Ask people for their business – it works!

It all boils down to meeting customers’ needs, the lifeline for any organization. Ensuring that customers receive what they expect is fundamental to any pricing decision. The good news is that in this current economic climate, customers will expect to only receive what they pay for.

In recent years most operators have gone out of their way to create service levels in excess of the price paid. But delivering more than what customers expect can be as tough on the bottom-line as not delivering enough.

Getting to know customers’ expectations is a little easier when most of those customers are members. The Westfield Golf and Country Club in Grand Bay, New Brunswick, has over 700 members who account for 85 per cent of play. But to keep those members it’s important to deliver what they expect for the dues they pay.

“When setting all prices we’re not looking to get fancy,” says associate golf professional Steve Leblanc. “We look at what is standard for our area and courses of equal value, and set our rates appropriately.

Leblanc feels that all clubs should strive to fill their course with as many members as possible. “Members tend to be great ambassadors for their own course,” says Leblanc, adding that satisfying their needs is the best way to keep them. “We need to stay up to date with the newest technologies and be constantly changing. We have to be sure that we are providing a product that can attract them and make them feel like joining our course and playing it is a wise investment of their money.”

At the Cambridge Golf Club, a public facility in Cambridge, Ontario, Director of Golf Chris Miranda admits that they’re probably not doing enough to monitor customer expectations. But he does feel that their fee structure is in line with not only what the local market will bear, but also with the experience they deliver and what customers expect to receive for those fees.

“We allow the market threshold to determine green-fee prices,” says Miranda. “All other pricing follows suit. You can’t stock $150 shirts and serve $30 steaks if green fees are $40. That type of customer isn’t the regular player or member.”

The club is doing many of the right things to maintain a share of a pie that, according to Global Golf Advisors, hasn’t changed and likely won’t. For example, while the number of rounds played annually at Cambridge in the last three years hasn’t changed, the club wants to keep it that way. So to make sure tee times are utilized during quiet times, they’re partnering with 39 area courses to offer reciprocal playing privileges for reduced fees.

Reducing operating costs is also a priority, though not at the expense of quality. To do that, Miranda says, they focus on “better practices, staffing, online payments to reduce bank fees, job sharing to ensure quality staff maintains hours, and sourcing products more effectively.”

Leblanc says Westfield has found ways to reduce costs without sacrificing member satisfaction. “Getting both CPGA pros to work the shop a few shifts a week will help reduce some expenses. We also went with electric power carts. The cost of fuel was becoming way too high over the past few years.”

It’s all part of doing the right things right, which is critical, says Global Golf Advisors, along with putting customers first, knowing and measuring what matters, and monitoring customer response daily.

And “think differently,” says DeLozier. “For example, a club in Phoenix had absolutely no rounds on Mondays. They decided to offer free golf and let customers pay whatever they thought it was worth. And you now what? Mondays actually became more profitable than Saturdays.”

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