Today, more people are getting more interested in sports business, one of them is Golf. Golf is where you can spend time, enjoy and competitively play with your family and friends.
But just like any other businesses, Golf Course management also has factors that can affect the way they operate the business, how they earn revenues and how they deal with problems the business encounters.
Understanding these factors is important because it enables all
Here are some factors to consider when running not just a sport business but all business in general.
Revenue Factors
For all kinds of Businesses as well, creating an opportunity to increase their revenue is one of the things that should be in the top of the list.
RM or research done in Revenue Management has addressed the practical and theoretical problems that face other industries like hotels and airlines. Which is also true to other businesses and the potential revenue that it can make. The way RM do this is by calculating the revenue per available time-based inventory unit.
One example is Tee Time Interval, it is where they look at to see how much money a course can make in a day. The are also the same for restaurants and other shops that are open only during a specific time. They use this to know which time of the day is it good to open their business, would more people come if they open it 24hrs or on a specific hr or day only.
The difference in every industry is that precise availability is not as evident as other industries. The uncontrollable factors may include the length of average round per game, number in a part playing, hours of daylight, and so on. Varying on the quality of the business, demand and the amenities available should all be taken into consideration.
It is very important to know all these factors so that you’ll be able to identify which one can affect the revenue stream of your business in a good and bad way, and from there you can create a plan on how to limit your risks in a way that it won’t hit your business that hard.
Maximizing Revenue
In order to maximize your revenue, one choice or one alternative will not be enough. You have to have at least other ways you can maximize your revenue.
Now, let’s say that the price for a round of golf does not cut the cover charge of maintaining the course, increasing the price of other amenities is recommended. Range balls offer a wonderful means of revenue with putting out little to no funds for upkeep. Another economical approach could be to have free mats to hit the
Customized memberships can also play a huge part to maximize your revenue. As this will encourage people to come back for more. Whether it is in using other amenities at the course, unlimited range balls, or discounted golf rounds, people like to feel a part of the exclusive elite. For example, many courses run by Hampton Golf, a company specializing in golf and country club management, offer access to private restaurants and events not available to those without a membership. These membership prices don’t have to be affordable, as the targeted audience are those who are willing to pay the extra dollar for better treatment.
By creating a means that will encourage customers to pay for something because it’s more convenient to use them while they’re using amenities. This will shift your revenue dependency from your main amenity to your add-ons.
Diversification
Offering youth workshops and training also helps bring in more possibility of revenue. Many people are willing to pay good money to get their kids on to the golf course. Bi-annual tournaments for the youth can also increase the number of new golfers to buy a membership. The more a golf course offers, the more people will feel compelled to spend their money there.
Don’t get stuck in providing one service when you can have multi-functioning service. Know what you have and expand from that. Take a look at what Starbucks and other cafe have done. They don’t just sell coffee, they offer other items or food as well that can compliment their coffee.
Conclusion
It is a known fact that those who golf have the financial means to play the game. The sport is not cheap to play, and so business within the game can be plentiful with the right business mindset. As long as the prices are creating a surplus income while at the same time enticing customers to come back, the course management plan created is doing the job it’s meant to do.
