Beyond the Tee Box: Promoting Municipal Golf in Today s Marketplace
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1 Beyond the Tee Box: Promoting Municipal Golf in Today s Marketplace Greg A. Weitzel, Director, Division of Parks and Recreation Tim Reinke, Manager of Golf Operations City of Idaho Falls, Idaho
2 Changing Times Require a Change in Strategy
3 Today s Presentation National State of Municipal Golf Idaho Falls Golf Operations Five Year Business Plan Future Recommendations
4 The Image Problem Golf has a systemic image problem to the most important segment of the population - those who don t play the game. It s unwelcoming to beginners, intimidating to non-golfers and not women-friendly. The industry needs to view re-packaging golf as if it were a new product; one with no history. Peter Hill, CEO of Billy Casper Golf Management
5 Barriers to Golf Participation Expensive Time to Play Frustrating Health Exclusionary Tradition
6 National State of Municipal Golf
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8 Participant Gains Vs.Losses Gained Lost Participants (MM) Recessionary effect Source: NGF golf participation study
9 Participants (MM) Long-Term Participation Trend Occasional 10.0 Core Source: NGF G O Lgolf F Oparticipation P E R AT I Ostudy N S F I- V1990 E - Yis Ea Acalculated R B U S I Naverage E S S P Lof A1989 N and 1991
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15 U.S. Course Closings 18-hole equivalents Closures: PUBLIC: (90%) Daily Fee: (84%) Municipal: 8.5 (6%) PRIVATE: 15.5 (10%) REAL ESTATE: 34.5 (22%, incl. both public and private) Source: NGF Facility Tracking
16 NGF Municipal Golf Survey 67% Cover Operating Expenses 39% of Municipal Golf Courses Have Debt Only 40% of Municipal Golf Courses Cover Debt Service 73% Are Deferring Capital Improvements 39% Lowering Maintenance Standards
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19 Pop.58,292 Metro 136,108
20 Sand Creek also has a six hole short course designed for youth and beginner golfers.
21 Idaho Falls Golf Mission & Vision MISSION Provide a high quality golfing experience for players of all ages and abilities VISION Be recognized locally and nationally Deliver exceptional customer service Provide competitively priced golf while remaining financially sustainable Enhanced conditions and excellent playability Use best practices and innovative technology
22 City of Idaho Falls Golf Operations Five-Year Business Plan
23 Public Input The Golf Operations Five-Year Business Plan was the culmination of lots of hard work by many dedicated people and the input of more than 300 golfers. Golf Advisory Board Key Person Interviews Suggestion Boxes Customer Satisfaction Surveys Staff Recommendations
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25 We Did A Survey! Liked Affordable, Variety and Quality of Courses Friendly Staff Disliked Pace of Play, Food & Beverage, On- Course Service Tee Time Scheduling
26 Golf Operations Five Year Business Plan Goals & Objectives Create Sustainable Funding Mechanism Implement Innovative Technology Improve Marketing and Advertising Improve Customer Service
27 Idaho Falls Rounds Summary Sand Creek Average Rounds 43,500; Short Course 6,344 Pinecrest 39,865; Sage Lakes 34,242 National Golf Foundation U.S. Average 33,000 All Three Courses are Exceeding the National Average Capacity 45,000 to 50,000 Rounds
28 Season Pass Holders Five-Year Average of 1,583 13% Decline in Season Passes Sold from % Decline in Junior Passes Sold National Trend on Season Passes and Memberships
29 Revenue Summary Average Revenue of $1,551,212 from ; $2,560,000 Resident and Non-Resident Season Pass Holders = 55% Resident and Non-Resident Green Fees Players = 45%
30 Average Price Per Round Average Price Per Round $20.00 $18.00 $16.00 $17.44 $19.41 $14.00 $12.00 $10.00 $8.00 $6.00 $5.02 $7.46 $9.65 $4.00 $2.00 $0.00 Junior Pass Rounds Senior Pass Rounds Adult Pass Rounds Punch Pass Rounds Green Fee Rounds
31 Average Revenue Per Round Total Average Revenue Earned Per Round = $12.56 Excluding Carts, Merchandise, Food & Beverages National Golf Foundation U.S. Average for Public Courses = $22.58 $2.43 Per Round in Merchandise $5.88 Per Round in Food & Beverages
32 Fee Structure Fair and Balanced Approach to Increasing Fees More Than 20 Different Options Were Reviewed and Analyzed Average Increase for Resident Green Fees = $2.50 Resident Season Pass Increase = $31.00 / Average $17.50 Implemented $1 per round fee for all Season Pass Holders
33 Staffing Comparisons Current Staffing Levels Below National and State Averages No Industry Standards to Determine the Appropriate Staffing Levels Depends on Budget, Course Conditions, Weather
34 Future Recommendations
35 Revenue Centers Current operational structure was not conducive to maintaining profitability due to critical revenue centers being shared, outsourced or not priced appropriately.
36 Retail Pro Shops The plan recommended transferring the operations of the three retail pro shops under the Division of Parks and Recreation and budgeting $300,000 in inventory and $410,000 in sales for , for an approximate profit margin of 30%, or $110,000 in additional revenue per year.
37 Capital Improvement Plan An Addition of a Permanent Structural Improvement or Restoration Total CIP Plan = $3,178,000 Special Event Tournament Tent or Pavilions One item that is growing in popularity at public golf courses are covered outdoor tents or pavilions for use by tournaments or other large special events like weddings or business gatherings. The areas should comfortably seat 150 to 300 patrons with portable folding tables and chairs.
38 Capital Improvement Plan Driving Ranges As Sand Creek and Sage Lakes driving ranges are only open seasonally during daylight hours, a feasibility study will be conducted for a lighted, enclosed and heated year-round driving range.
39 Technological Advancements Point of Sale System New Updated Website On-line Tee Times Smart Phone App Social Media Marketing E-Club Development
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41 Technological Advancements
42 Marketing & Advertising
43 Marketing & Advertising Update the billboards at Pinecrest and investigate installing billboards at Sand Creek and Sage Lakes and change out messages four (4) times a year based on significant promotions. Use our professionals!
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49 Leagues and Associations
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51 Ideas for Welcoming Women Staff a female golf professional or female PGM intern, female coaches Establish Ladies Golf leagues Working Women Offer Merchandising and Equipment for Women Golf exercises for women (Ex. Yoga, Women programs for golf fitness) Women s Golf Instruction Get Golf Ready USGA s Girls Golf
52 Marketing and Advertising Prime the Idea Pump Arnie Biondo Offer some freebies Include a ball (.42 cents) and tees with every greens fee Offer to replace a players ball if lost in the water or out of bounds Charge by the hour, not by the round When and how? Experiment Have one fee, regardless of the number of holes played Offer Family Golf Nights-Fridays or Saturdays Offer Date Night at the Driving Range
53 Marketing and Advertising
54 Marketing and Advertising Prime the Idea Pump Provide decent loaner clubs at no charge $ sets on hand Well executed promotional campaign Partner with local fitness clubs Host morning jogs before opening Fitness instructors conduct conditioning classes for players Launch fast golf program jogging course w/ only 5-iron and putter
55 Marketing and Advertising Adopt a liberal interpretation of the rules, or write your own house rules Change the rules to remove frustration, lower the expense and reduce time Remove sand traps and obstacles It s Okay to Play Golf for Fun Scoring is optional Gym shoes okay Moving ball to better lay okay Pulling ball out of trap permitted
56 Marketing and Advertising Prime the Idea Pump Build par-3 within your regulation course Build new tee boxes or just put markers out around 100 yards and call it the par-3 start Promote 9 hole outings and more unique tournaments Reduce time and expense Check out Tee it Forward (PGA) Check out GolfCross or Goalf FootGolf 200+ courses offering in 40 different states
57 Check out HackGolf Website
58 Food and Beverage Services Average 4% of Gross Revenue = $11,443 in 2012 / $2.12 Per Round National Golf Foundation, the Average Public Golf Course in the U.S. Produces Approximately $5.88 per Round in Food and Beverage.
59 Food & Beverage Recommendations New Beverage Cart-Required Services During all Weekends and Tournaments
60 Marketing Your Menu Screens within Golf Carts displaying ad s Phone s on key Holes Menu s on seat and drivers wheel Pre-sale menu packages before teeing off Staff announce specials of the day during greeting on the phone QR-Coding menu s and ordering systems Develop winning packages that include food Garden billboard/restate signs Coupons with check-in Engineering Your Menu For Success
61 Food Vouchers Work Voucher Example Results City of Fremont- 30% return estimated on sales $60K Beaver Creak Golf Course on off season went from $11k to 30K in sales Santa Maria Golf Course on off season went from $120K to $160k Chesapeake Beach Township $226k sales to $334K
62 Conservation & Sustainability Efficient Water & Energy Use Complete Energy Audit at all facilities Pollution Prevention Water Quality Protection Wildlife and Habitat Management Chemical Use Reduction and Safety
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64 Customer Service Quality customer service is the best marketing tool possible. Recommendations Develop training programs and set clear expectations for staff. Etiquette, Dealing with distractions and complaints Remembering names, clubs, details use POS Conduct yearly evaluation of staff and survey of golfers. Implement and require staff uniforms and name tags at each facility.
65 Conclusions Local market conditions will have much more to do with individual course performance. Estimates are that between 500-1,000 public courses will close in the next five years primarily those with negative cash flow, debt and low return on investment At the end of the decade, the average number of golfers per golf course may only rise by 150 to 200 golfers. Rounds may increase due to the aging of the population, particularly the baby boomers. Attracting beginners and fringe and/or casual golfers will become even more important for success
66 Conclusions Successful public operators will need to show a higher degree of good management behaviors A focus on customer service Monitoring customer sentiment and feedback Maintain customer databases Strategic planning Player and league development Identifying new revenue sources Improving the golf experience Committed to and social marketing and target marketing communications
67 Changing Times Require a Change in Strategy
68 Beyond the Tee Box: Promoting Municipal Golf in Today s Marketplace Greg A. Weitzel, Director, Division of Parks and Recreation Tim Reinke, Manager of Golf Operations City of Idaho Falls, Idaho
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