Is Scoopon good for golf?

May 15, 2013   //   by Mike   //   Latest News  //  Comments Off on Is Scoopon good for golf?

The recent craze of promoting limited availability “daily specials” (such as Scoopon), that seems to be happening around the country, has now come onto the shores of the golf industry here in Australia. It is understandable why they are becoming so overly popular in this economy.

A great story was written recently by Richard Fellner at Inside Golf asking the question “is it good for golf?”

Inside Golf – “If you’re not familiar with it, Scoopon.com.au is a website that sells online vouchers with heavy discounts on products and services. A direct copy of the successful Groupon model in the US, Scoopon offers daily deals on things like dinners, massages, car service packs…you name it. In golf, an example could be 2 rounds of golf, plus 2 lunches, plus 2 beers, plus a couple of golf balls…all for a crazy price like $49 – of which the club pockets 50 per cent.”

In my opinion these types of products can be great tools to be used to promote distressed inventory, but be careful if you think it will solve all your problems.

Watch this informative video on the subject. The Downside of Price Promotions (video)

You must fully understand what your overall outcome is to be and translate this to  a revenue management plan. This plan subsequently is reflected in your marketing plan, which dictates which marketing medium or tool you should use. These type of distressed inventory opportunity should only be used as the last, last resort.

Instead of taking the easy way out and giving your power and margins away to the salesman that called you about “how great a program this is”. Why don’t you spend more of your valuable time focusing on servicing your members, building group business or creating a better golfing experience for customers so they see the real value in what you are charging. Focus on building your corporate and event business which generally has much greater returns  for the money you put into managing. Spend some money in improving your service standards and quality of facility. The basics of any golf business.

If you’re doing a special and you also have to give a high percentage of the revenue to the company doing the marketing, your creating even a bigger discount to your cash flow, that will eventually catch up to you.

So it is worth it? 

It is if you have thought out your overall pricing strategy, identified your KPI’s, and set up as part of a longer term campaign. How do your members and regular clients perceive the rate? Are they as loyal to you now as they were before? Finally run a cost analysis after any promotion such as this, it will give you the true answer.

Inside Golf – “Will golf courses eventually go the way of airlines and hotels? Will green fees change on an hourly basis? Will we soon wonder if the guy sitting in the cart next to us has paid a better price for his 18 holes?”.

Yes some good operators have already adopted this approach. This is already occurring at the resort style courses in the country, though there is not enough demand currently to necessitate changing rates hourly. We do see daily and weekly changes as the norm now,

Golf Industry Central specialises in revenue and yield management strategies for the golf industry. Please drop me a line anytime if you would like more information on how these results driven services work. It’s not rocket science,but it can be hard to know what to do. It is all in the planning and prioritising your individual revenue streams, so please let us help.

Written by Mike Orloff – Golf Operations and Marketing Specialist. Contact Mike Orloff at morloff@golfindustrycentral.com.au or (61) 0415 682 259

Click here for full story at Inside Golf