Come up with ideas to survive
Selling land or developing attractive real estate along the fairways is the obvious way for financially distressed clubs to stop going under.
For example, I know a club which sold off its practice fairway in order to survive financial ruin.
Poorly executed development deals, or joint ventures, have left clubs on the point of collapse and rarely does a week go by where another golf club’s long-term viability is in question.
Selling an asset for its greatest return requires planning.
Rather than just selling off some land, and although it’s a painful procedure, rezoning and obtaining an approved DA (Development Application) is an essential recipe ingredient for maximising income.
More and more golf clubs are realising that they can’t survive solely on golf income.
Time is money and you need to have a good grip on how long you can hold out, if you see any risk in your club’s long-term profitability, so plan well ahead.
The money doesn’t just keep rolling in as others will copy and do better.
Don’t try and discount in an attempt to get business back, as this option is not recommended.
You must stay competitive and come up with new ideas if you wish to survive the ever-changing golf market.
Whether you are selling cream buns, golf club memberships or green-fees — if you don’t understand your target market and come up with new initiatives, you’ll find yourself on a death spiral, as the only way a rational-thinking person can differentiate between identical products will be based on price.
Out of Bounds: Just a few years ago, many would have thought that the guy who received a cheque for US$100,000 after completing his fourth round is the winner. But last week in the Hero World Challenge, it was for coming last. Hideki Matsuyama must have said to himself “thank you very much” as he headed to the practice range. Don’t let the point systems used in evaluating players’ standings fool you — there’s an awful lot of money out there now for those playing on the main tours.