golfrewind.com

Hey everyone,

I posted on here a few weeks ago about my business class and how our project was starting a golf shop and driving range...after talking to some people who own golf courses, they said that ranges generally do not make much money, as they require a good amount of upkeep and the expenses for running it are high (not to mention the land is expensive....also, i should have mentioned we were trying to make a range look like fairways to give golfers something to aim at, rather than a big field, you may have remembered this post from a while ago).....

anyways, the plan has pretty much gone down to just a golf store, but i don't really know how much money those places can make by themselves...what would draw you to a certain local golf store over another? basic amenities are just allowing people to rent clubs to demo, having 4 or more simulators available for rent, possibly a mobile simulator to take to amateur tournaments and so forth, as well as renting simulators to clubs if they want to keep it for just the rainy season or winter months, etc....so what i really would like to hear from the golf enthusiasts here is why would you choose one golf store over another? what services would you like to see (they have to be financially feasible, of course, which is what makes this project so hard...im sure there are a lot of ideas that would cost a lot but we can't really put those into our business plan)

remember, its just a class, so throw out all thoughts, be brutally honest...thanks for taking the time to read the rambling above, i really appreciate it!


ss

Have a friendly and knowledgeable staff that know golf and golf equipment. I've overheard a lot of bad advice in some of the big box golf stores.

If a customer purchases a driver or set of irons give the customer a free ball fitting.

Offer reward points for customers on everything they purchase and then at the end of the year mail them a get a gift certificate based on how much they spent.

Don't push the latest and greatest. Give they golfer what the need, not necessarily what they want. If someone comes in and picks up a Nike Sumo 5900, ask him if he, or she, would like to demo it first.

Work with local golf courses and perhaps offer discount coupons to their golf courses.

Offer putting clinics in your store, and perhaps basic club repair classes (changing grips, shafts, etc).

Good luck!

In setting up your business model determine what your drawing card is. What the customer can expect in service and where your best dollar comes from. Do you want to provide services or equipment (or how do you balance the two).

Look at the location.

Is there a pro that wants to share expenses for to use the store as a way to get business? His or her reputation can enhance your positioning in the local market.

Invest in a fitting system 3 to 5 k will get a swing, club analysis system that can be setup in a shop situation. Have club making and adjustment equipment and look at Golfsmiths or other training. There are dollars to be made in new grips, shafts, and adjusting clubs.

Customer service is a big draw in specialized markets. Word of mouth at the course will bring in business. Most courses have their own pro shop, but see if they need fitting services and see if you can work a deal.

Schedule demo days with OEM dealers, they may even chip in on the cost offer discounts or provide a van for on site repairs to their equipment.

Find a charity you like and build an event around golf. We had a local radio station have a closest to the pin contest that brought several businesses together, shared advertising dollars and gave back to the community,


Contact the major OEM's and see what they recommend, incentive, coop dollars, and inventory requirements.

Set up a web page and look into online sales. This can be for unloading tradins, consignment, or building your brand (company exposure).

I am just brainstorming so some of these thoughts may be rejected without hurting my feelings.
Have fun.

I've worked (possibly not doing it this season) at a pro shop for years, part time helping a friend. Here's my 2 cents.

#1 - You don't need 4 sims. Get one or two good ones that provide good launch data should suffice.

#2 - Advertising brings people in to a Pro Shop, but inventory versatility sells equipment. Some people don't mind ordering clubs, but lots of people are looking for what they want right away. If you don't stock clubs to suit a variety of people, you'll lose sales. The old way of carrying 10.5* drivers with regular shafts and 9.5* drivers with stiff shafts (and special ordering everything else) is going to have your customers going elsewhere. Stock some ladies clubs, stock some high lofted drivers, even stock some stuff for the guys who mash the ball.

#3 - Unless you're selling super-high high volume, it's not cost-effective to carry EVERY brand on the market. Manufacturers sell at price breaks by volume, so if you're not as big as Dicks or Golfsmith, key on manufacturers that will sell the most... thus you'll make higher margins of profit on those companies' merchandise.

#4 - Staffing is a big problem. Golf shops can't afford to pay salaries that feed families. If an owner isn't going to put time into the store, it gets really tough. Do you want part-time high school kids running a store with a few hundred thousand dollars of merchandise in house? I've seen my share of part timers of all ages that worked our store for the purpose of making clubs disappear (because the $10/hour they made working just didn't cut it). Staffing is tough, period. Try keying on semi-retired guys or college students who are equipment freaks because they'd be more apt to be working for the love of the game. Having a knowledgable sales person (who can fit someone) is a huge advantage.

Are you going to have a " brick and mortar" facility and a "click and mortar" facility?

There is always a market for both...If you do have both make sure both are in line with each other...for example, if someone wants to return an item they can easily come by the brick and mortar facility if bought via online.

Another thing you can consider is to have a "component section" for clubmakers and hobbyists and an "assembled club section". Hire quality club makers and club fitters as well as teachers...

p.s. as far as driving ranges are considered, you cannot make it on seeling golf balls alone...you must be creative. I have seen some ranges have both a paintball area and golf range area. Food and beverage and arcade and playgrounds for Families: kids and adults.

I really like all the ideas you have given me. I didn't think about opening a website, but that shouldn't be too much work extra. I like to order everything online for in-store pickup, I'm not sure why but it just makes sense. I see what you mean about the driving range, Bang-Golf. I really wanted to open a driving range, but I think it's just not feasible in terms of space and cost of the land. In Tampa, the only place with a lot of land for sale is kind of out of the way. I like the component idea too, that adds something different. Is franchising the way to go when opening a store? Like Golf Etc, Pro Golf Discount or something? I'm not really sure how else to contact OEM retailers, it doesn't seem like they would talk to a random person opening a store. How much space is needed for a respectably sized golf store? 3-4000 square feet? I really appreciate all the stuff that you guys have come up with, I really am going to try to incorporate a good amount of these ideas into project. Also, I was wondering what types of partnerships can stores form with golf courses? Most have their own (generally overpriced) golf shops, but would they really be willing to "outsource" fitting services? Again, I really appreciate all the ideas and keep them coming if you have them! I want to make this idea as unique and different as possible, and all your ideas trump mine quite a bit...Thanks!

SS

Staying in business with a retail golf store probably isn't easy. They come and go here. In fact, one location was three different golf shops in just a few years.

For a relatively large city we have very few retail golf stores. The two big ones are Golf Galaxy and Uinta Golf. I have never been in a Uinta Golf store and I have lived here over 10 years. I live very close to the Golf Galaxy, "which is nice".

I am an avid golfer and I have only purchased three sets of irons in the 30+ years I have been playing. I am considering buying a new set this season, though.

When I do buy clubs, I like to try them out on the simulator at Golf Galaxy. They also have a net, but that doesn't interest me as much.

They give lessons there with video analysis in another area, but I prefer to be at a range for swing lessons.

They have a nice putting area with tons of putters, but I have never bought a putter there. It is fun to hit some putts and search for a putter I like, though. I have had an Odyssey Tri Hot #2 putter for most of the ten years I have lived here.

More often than not, I use my men's leagues pro shop credit for balls, gloves, clothes, shoes, bags, etc. instead of buying from a retail golf store. I have to spend the money there and usually don't wait to buy larger items.

I used to trade in a driver each season just for the new toy factor, but didn't do that last season. New drivers and driver trade ins could be a good source of profit. Some drivers are priced so high it's just silly. Trade in value is low even if it is just a month later.

I usually trade in wedges each season for new grooves and grips, although I used pro shop credit last year for new wedges and haven't done anything with the old wedges yet.

Last year, I probably spent thousands of dollars on golf. Most of it went to greens fees, men's league events, and state tournament fees. I traded in a hybrid for a new hybrid at Golf Galaxy and maybe bought a few dozen balls and glove or two from them. The courses and course pro shops got most of my golf money.

For this season, I already have new shoes, balls, tees, towel, cap, etc. ready to go from spending the last of my men's leagues credit.

I play regularly with the owner of one of the biggest and most successful golf shops in the Washington, DC area. He also has a successful store in the Philadelphia area. He said his internet business now exceeds his bricks & mortar retail ops. Part of your plan should include a significant internet presence, particularly for used clubs you take in trade.

To combine a range and shop is a great idea, BUT, finding reasonably priced land in a major metro area is very difficult. A unique example in our area is called Powerline Golf. Why? Because it's right under big transmission power lines. There was really no other developmental use for the land. They have a reasonably nice but fairly small shop. They do have fitting carts from the major OEM brands so people can come and hit lots of different clubs on the range. The owner is also an experienced club fitter. (I took my wife down there for a fitting and we ended up buying her a new set of Pings (he happened to have a set in stock that fit her) and a new bag.

Another unique operation in our area is called the Mid-Atlantic Tour Trailer. They have a truck that travels to driving ranges and courses/clubs in the area and they have fitting carts from every big OEM. They charge for fittings but credit that to purchases. They also opened a fixed facility at a public/resort course in the area. They built a shop right on the driving range with two indoor hitting stations and all he latest fitting analysis equipment. A good buddy of mine went to the fixed facility for a fitting and ended up spending $2k+ on new stuff, and this is a guy who has built his own clubs from component parts in the past.

To summarize:

For the range, you need to find reasonably priced land, and that means land that basically has no other potential use.

For the shop, you must have the latest/greatest fitting equipment and knowledgeable staff. Having one or more good teachers on staff is also a good idea.

Another important part of a shop is clothing, it's a big money-maker if done right. You'll need to have a really good merchandiser who can run that side of the business.

Last, but most important, is that you need to have enough start-up money to get the business going. The number one reason for business failures is a lack of capital.

I've been looking everywhere for initial investments. I can't find anything, but I assume for the golf shop by itself the loans will come out to at least $300,000-$400,000. I am just taking a stab at the number though, and this is without the driving range attached. The problem is that initial investments for the store alone are going to be so expensive that it wouldn't be feasible to say that we could get a loan for $1 mm, or however much the land would cost to buy and clear. Also, I have no experience with how much a loan payment is each month, so does anyone know how much a loan payment (just a range) would be? Assuming a $350,000 loan. If these numbers are off forgive me, I'm not a business major, I just took this class because it sounded like it could be interesting, and it's completely different than anything I ever study. Thanks a lot for all your help, I really appreciate all the replies, I wouldn't have thought of a lot of this stuff, so luckily you all don't mind helping me out. Thanks again!

SS

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This is just from a personal perspective:

First off location, not only location in your city, but where is your city, what courses are in the area? Location will be very important for your shop. With location comes square footage costs, your want the best spots, you will pay for it. SKIP THE MALLS, you pay a perecntage of your profits, in addition to rent, in a Mall. Do better, they want more, sick isn't it?

Customer Service. This is almost more important as price and selection. If you don't have out going, passionate people, who love their job, the game of golf, you will fail. One bad sales person will ruin your store, and it's rep.

Internet sales, you must run at the same time, a smooth, polished web site with a cart feature and have someone work the site daily. This might even generate 60% of your business.

Some personal ideas:

I like the idea of of golf packages, to not only promote your store, but golf in your area. Myrtle Beach is a golf packagers heaven, so I would look at some of their operations on how to run one, but on a smaller, tighter scale. I would go to all the local golf courses and present a business plan, including numbers on how you are going to fill up their tee times, the increase in revenue they will make, and work at a 30-25% discount off of their normal tee time prices. You must also seek out 3-5 local lodging options, using the same business model and project revenue increases, and try to work upon the same discount structure. In an area with a decent amount of courses, you could maybe even approach the local/city government, about tourism and see if they want to offer anything, since you are bringing people and revenue into the area. Outside of Myrtle Beach, I think this is an often missed business oppertunity. The reason everyone isn't doing one in every area, is that you can run it locally as stand along business, but incorporate it into your store, and I think you have another source of steady income. You also can go out, with a camera, rate, review, and photo the local courses, making sure to bring out their strong points, not their weaknesses. (they may frown upon you, pull their discounted tickets if you review it and call them a dog track) THERE IS NO TRIP/PACKAGE PLANNER who goes out and takes the time, the photos and shows off a course.

Perks:

Memberships, e-mail blasts of sales (ala Golf Galaxy), Demo Days, local Tourneys (you can really bring people in, spread the word about your store). I like the idea of a huge leader board with a mini ( Your Store Name ) Sponsored Tour. I think you can grow your store not only into a store, but a meeting and gathering place for local golfers. The Gift Card as a prize is a proven winner, no one spends the exact amount of a gift card, they always buy more, it could be that day, or a week down the road, but give a person something free from the store, they are a customer for life.

I have lots and lots of marketing ideas, to many to list

We could give ideas but you'll have to figure out if they'll work for you in your situation.
Bottom line is the only thing any start off business needs to be concerned with, because more than 70% of the start up business failed within the first year.
Here are the reasons why I visit some of the local store than the other; (1) inventory, current and discounted, and I don't mean those that locked up either by the wall mounted brackets or encased in glass windows. Us golfers like to handle the golf clubs besides just looking at it.
Here is an issue of store security which you'll need to think it over of the pros and cons.
(2) friendly staff, I could care less if everyone in the store knows answers to my questions, or I probably know what I want to see already, but if the staff is pushing for sale and not friendly, I'll take my pennies somewhere else to spend. (3) My favorite golf store has a regular sized driving range, my friends will drive more than 30 minutes to the location to demo a bunch of clubs before the purchase, normally they'll narrow down to 3-5 choices before hands and make purchase on the spot after the demo if the asking price is not outrageous. We'll pay a little extra for able to physically demo all the choices.
Out of the 3, I think the importance are ranked (2) (1) (3) in that order.
Hope this help.

In addition to all of the good suggestions already given, I go to Golfsmith over Golf Galaxy for one reason; they have a left handed section. Golf Galaxy just throws the few lefty clubs they stock in with the rest, and it's too much of a pain to look through them. One row just for lefties is well worth the space.