Increasing the Average Spend of Your Golfers
May 8, 2017
Matt Flory, GM at TPC San Antonio, provides insight to finding the perfect balance of providing a great golfer experience while getting them to spend more.
Golf course operators throughout the country continue to work to find the correct balance between providing guests with the perfect value equation while delivering a healthier bottom line. An effort to increase the average spend, therefore increasing profits, can be performed through a simple three step process.
Studying Your Trends
Whether it is year to date, month to date, or a rolling twelve, having a solid grasp on your historical numbers is critical to creating a path for future growth in category spends. Every category can be assigned, and certainly is most often assigned, a dollar per round contribution, from Green Fee/Cart Fee to Merchandise to Food and Beverage. Once you are famliar with the actualized spend per customer, you can take the next step, which is a two-parter.
Where Do We Need to Go? Will the Market Purchase Our Product?
Beginning with the end in mind is an important next step in determining how much additional revenue you would like to experience from your customers, on an average spend standpoint. In most cases, operators often know the bottom line expectations they need to achieve beyond their current performance. For example, if the revenue portion of your EBITDA was $500,000 one year and the next fiscal year calls for $750,000, you can back into the number of customers you need multiplied by the average spend per category you need from them, to reach your final revenue goal. Perhaps your merchandise dollar per round is at $23.56 and taking that number to $25.50 at a specific rounds count will help you get closer to that $750,000. Performing that process through every product mix will help guide your efforts to your overall number.
Now to the sequal in this category, will your customer purchase your product? Just becuse you set your average spend per product at a specific level does not mean the market will bear this. This brings us back to our opening statement, finding a dollar per round that assists in your financial goals while presenting a price that the customer finds value in, and ultimately continues to buy what you are selling. If you can do that, you are well on your way. This can often be accomplished by understanding the industry via competitive market studies.
Time to Go Tell Our Story
The trilogy is almost complete. After knowing your actuals and now understanding your new goals, ones that the marketing will bear, the final step is continued marketing. From point of purchase signage, to testimonials, to simply having passionate employees that believe in the product, a higher spend per customer comes complete by enhanced marketing and sales efforts. It may be as elementary as the server selling the tasty chocolate cake versus the customer skipping dessert, but what a difference those efforts can make in translating from real time to the profit and loss statement.