Memo to Pro Shops
When was the last time you were excited to make a purchase at a golf course? What, no interest in being overcharged for sleeves of balls, gatorades and last year’s golf shirts? I’m guessing you didn’t buy your last set of irons from the pro shop either. Exactly when and why did this business model go so wrong?
I will have to check the Harvard Business Review for the exact origin, but it is clear that too many pro shops still utilize the same business model employed by airport kiosks. Like every other weary traveller, I do in fact end up paying for a $9 coffee at the airport Starbucks (and cursing them) but I will do everything in my power not to buy a $17 sleeve of golf balls from a clubhouse. Honestly, why do pro shops think they can so blatantly screw us over? Perhaps it’s because that is what they have been doing since the beginning of time and they are now just plain lazy merchandisers.
This is the business model Pro Shops are copying
Here is a hint: try acting like a company that wants to help its customers and actually promote return business. I know, crazy right? So what is the solution? This would be my plan.
1) Don’t put your Club logo on everything:
Remember back in the day when you played a fancy golf course and felt obligated to buy a shirt from the clubhouse as proof of your conquest? Making it a double win was the fact that a logo golf shirt was an acceptable and fashionable option. Well, my friends, that Members Only ship has sailed. The problem is that nobody sent the memo to golf course clubhouses.
Clearly there are some exceptions to this rule and courses steeped in history or featured on TV can somewhat get a pass on this issue. However, for the other 99% of golf courses, please realize that you cannot expect to simply take an adidas, Nike or TaylorMade shirt, throw a logo on it, mark it up 30% and watch it fly off the shelves. It’s just not gonna happen. Aside from the fact that most shirts sold in pro shops can be purchased online for a lot less (and we know it), we are no longer particularly interested in being your personal billboard.
Hotcakes
2) Sell more designer and lesser know brands
In the days before the inter-web and big box stores it probably made sense to offer just the big brands. Now, however, people have wide exposure to these products and have little reason to purchase them at a pro shop (especially at premium prices). The solution, therefore, is to sell high end brands with lesser name recognition. The advantage of this approach is twofold. 1) When customers scan the apparel racks they will actually notice the shirts because they will be unique and unlike what they see in Golf Galaxy and 2) they will not have a mental price comparison. Now, maybe pro shops will have a fighting chance to get me to drop a few extra bucks because they have provided me with a unique buying experience.
While I have seen some movement in this area with higher end shops selling the likes of Peter Millar and Travis Mathew, there is still opportunity to go even deeper with companies like Lyle & Scott, QED Style, Cross Golf, In Fiamme, Sligo and Criquet just to name a few.
3) Sell commodity items at fair market value.
Everyone knows how much a sleeve of balls or a golf glove costs, so why are you squeezing me? I would love to support my local club and buy all of my balls, tees and gloves there, but not if they are marked up 40%. Bottom line, charge a fair price and you will make it up in volume, I promise.
Ok, one dozen Top Flights, that will be $35.
This goes for prices on drinks too. $3.50 for a Gatorade is a joke and I will continue to buy them on my way to the course until you stop this nonsense. Again, I am happy to give you my business, but let’s be fair about it. Oh, and don’t go checking my bag because I definitely do NOT have a 12 pack hidden in the side pocket.
4) Get rid of all of the equipment
In all of your life have you ever known anyone to buy a putter or driver from a clubhouse? If so, were they drunk? Sure, if you offer fitting then by all means have equipment, but if you are simply providing me a way to kill time while you spend ten minutes ringing me up, take the putters away and make room for something useful.
Definitely buying some of these.
5) Go back to dumb registers
Yea, I know corporate wants to know where every single penny was spent so the cool guys in accounting can make big spreadsheets, but it honestly takes 4 minutes to ring up a hotdog, chips and a beer. I have watched the guys push no less than 15 buttons to complete this task. How about this for an idea: $2 plus $5 = $7. Let me pay and be on my way to the 10th tee?
And finally . . .
6) Be friendly
First off, there are lots of golf courses that have nailed this (and we love you). For the others, I understand that you are only making $8 an hour behind the counter, and that sucks, but don’t take it out on me. Look, we just showed up for a 5 hour day of glory and a respite from our equally shitty job, so why not help us get this thing started and show some teeth. Smile, tell us to have a great day, maybe throw in a small bucket for us. We will tell everyone we know how awesome the staff is and we will come back!
Bonus Tip: Throw in small bucket for foursomes
I know courses make money on range balls and that is fine. But, if you are a high-end course, why are you jacking me another $5 for a small bucket? One of two things happen here: 1) one guy gets stuck getting balls for everyone to share, or 2) everyone cheaps out and takes breakfast balls instead. Look, we just want to hit 7 balls each. It will help speed of play to not have us suck so bad for the first few holes, and really, can you spare a dime brother? We will love you forever.
This is spot on ! Good job.
Great article and I completely agree with your points. Most pro shops are overpriced and sell older models as well, neither of which I’m interested in. If you’re in New England you should try Joe and Leighs at Pine Oaks GC. They sell the most current models at really competitive prices too. Can’t understand why other shops can’t do this as well. Maybe banding together to form a collective buying group similar to smaller appliance stores so they can compete with the big box stores.
I agree with every comment that you have made. I would play at the golf course that did 3/4’s of what you addressed.
I agree totally and would add another.
– don’t say members won’t buy it, how do you know if you haven’t tried? Be opened minded, it could bet you more.
Question- would a private golf shop make more money if the charged cost plus 10%, or charged an inflated price?
I’m at a private course and I hear that our head pro makes a commission. I would imagine it’s not much because we have the same boring sh$t. Can’t make much when you don’t sell much.
Clifton,
Yup, I hear the “my members are too old” excuse all of the time. Fact is, some of the members are not too old and what gear that it more youthful. Clubs need to also pay attention to that crowd.
In terms of pricing, I totally believe clubs can make up less profit margin with increased volume if it was widely known that prices were at market value and not at inflated rates. Pros are mis-guided in thinking that their “service” and “convenience” gives them the right to mark up product 25-50% over other stores.
I agree with all that and also believe they could make up the profit margin. This kind of thinking could kill private clubs. I just got myself voted onto the board and that makes 3 out of 5 of us under the age of 40 let’s see what we can do.
Spot on each point. Great article.
Not our golf shop – we still have all the equipment and will beat any of the big store prices – we’re friendly (or at least we better be!)- we still have a “dumb register” – we NEVER overcharge for a commodity – nonetheless your points are well taken! How can our shop overcome this stigma that most golfer have? …love your blog
God bless ya! I am not sure the best way to overcome the stigma as you have a lot of clubs working against you. As for commodities, I would make the prices very clear as I think most golfers assume things like balls and tees would be jacked up in price. Clear signage might help that. One other thing I should have mentioned that is relevant to semi-private clubs…when a member brings three guest, show him some love. He just brought 3 paying customers so how about a free bucket of balls, cart fee or a gatorade for the effort. It will go a long way.
Always about a little somepin somepin on the side.
Personally for higher end courses I can understand the logo/name brand and the mark-up but I always hit the mark-downs rack.
It’s been a habit of mine to buy my wife a golf shirt on the way out. Would be nice if these were a little more inexpensive. I tend to spend more for the little woman than for myself anyways.
As for equipment and consumables (like balls) yes I totally agree. But you’re they are really targeting the unprepared not the seasoned golfer.
As for a dumb register, I have to disagree there. All they have to do is simplify their register process. Those smart kiosks are smart so long as they are programmed correctly. Have you seen McDonalds? They have over 120 items on their menus how can they turn so many meals and have a kid with the education of a high schooler still manage to get your order right, give change and assemble your order properly? It’s all about the process and simplifying it. The managers have to get off their haunches and fine tune their order process simple as that.
I will agree you are right on a couple of points in your article. Especially customer service being nice to people should be easy to do. However lets talk about pricing. First 40% markup is in a pro shop or any other shop is fair markup. The local club may buy say 100 items from distributer at lets say $10 per item and then mark it up 40%. The Dicks Sporting Goods, Golfsmith etc buy 10000 of the same item at $5 per item keystone the price, that’s 100% markup, and then 2 months later put it on sale for 25% off and their still selling making more money than the club. Now who is being unfair? Neither. The number one reason to go into business is to make a profit, period! A Pro Shop now says are selling items as a convince to their members or guest. We as consumers have the choice to purchase as we wish. Pro Shops are not taking advantage or selling at unfair markups. They make very little in merchandise on their counters.
Stick to your municipal course. You clearly have no idea how country club pro shops are run. Opinion based on – what?
Fair enough. I am not a member of a high end private course. My opinions are based on my experience with public courses that run from muni to places like Pebble.
I agree with everything stated above. But your last rant about the angry guy at the register Then the grump of a starter really strikes a nerv3. I value my 4 hrs with my buddies every weekend and nothing is worse starting the day with angry employees.