WHY DO GOLF COURSE OWNERS SPEND SO MUCH TIME AND ENERGY CHASING 10-CENT DOLLARS?
Let me make it simple: When a person hands the clerk $60.00 to play a round of golf the only exchange in inventory is the pencil and score card. All the preparation is done - golf course maintenance, etc.
If a person spends $10.00 in the grill room for a beer, burger and fries, the cost of that sale including ingredients, preparation and serving, plus support infrastructure will be at least $9.00. So here's my simple math:
Collect $60.00 for a green fee. Net = $60.00
Collect $10.00 for beer and burger. Net $1.00. But wait!
I need to sell 60 cheeseburgers to take in $60.00! So, what's my point?
Concentrate 90% of your total energy into putting golfers on the golf course. Chase those 100-cent dollars - then make the best of the concession 'opportunities' while the customer is on your property.
MY FORMULA: 80-15-5
I believe the revenue formula for a daily fee or semi-private golf club should be 80% from fees, 15% from the grill room, and 5% from merchandise. The closer a golf course business is to my formula, the more likely it will be a successful business.
What is your experience? Write me: mike@golfmak.com
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