No perfect science to pricing beer

With Geoff Tait, President

19th hole 2

For those of you that have gotten to know me over the years, you are probably aware that the 19th has always been my favourite hole!

With Triple Bogey expanding across Canada this year, we are very excited to work with all our old friends from the Quagmire days, as well as make a ton of new ones.

One of the most common questions we get is: “What price are other courses selling beer for?”

While there is no perfect science to pricing beer, we always say that what a course charges varies based on green fees, calibre of the course, target audience, and what brands it is carrying.

It’s no secret that sadly, there is a bit of BYOB happening at golf courses (which is highly illegal and could result in the loss of the operator’s liquor license, so keep your eyes peeled).

I always say price beer according to what you are able to get for green fees. If you are getting $200 a head just to play the course, then those folks are more apt to pay $8-10 a beer. If you are a low to moderately priced course, then we find $5-$7 seems to be the sweet spot.

It also depends on how much you are buying the beer for from the supplier. Many of the domestic corporate companies are selling cans for the same price as us. If you venture into the craft or import world, you will be paying a bit of a premium, which usually means having to charge more to your customers to reach that target margin.

Don’t get me wrong, variety in selection is very important – especially to attract the younger crowd. So, be wary of the exclusive deals with the big boys because they don’t give good variety and usually aren’t worth what they are offering.  Give your guests a good selection and they will likely stick around for one at the 19th.

There has also been a lot of talk about raising beer prices because of the rise in minimum wage. While we are a little biased, we don’t think this is a great idea. Our advice is to spread that increase across the board and people won’t even notice.

Raising beer prices from $7.00 to $8.00 won’t go unnoticed, and you better believe those BYOB guys will bring even more. With a price increase, casual drinkers are more likely to just head home after the round to have a cold one on their own deck. Instead, we recommend a slight raise in green fees, on that hot dog at the turn, and on the beer price. This will be more easily accepted and only your bottom line will notice.

I’m always amazed at how many courses don’t put enough emphasis on the F&B part of the business. You have a captive audience looking to spend money.  Why not give them the opportunity to do just that and keep them at your course instead of them heading out to their local pub.

Variety, marketing and service are three important keys to success and we will talk about those later.

See you at the 19th hole.

http://www.triplebogey.com/

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