The Pellucid Perspective - December 2012 - (Page 9)

GOLF COURSE MARKETING Private club wins big with The Ultimate Skybox By Jim Dunlap irtually every new sporting venue built in the past few decades had one thing in common – more private skyboxes than their predecessors. The revenue potential is just too huge to ignore. That got General Manager Eric Jacobsen and his team at the private TPC Stonebrae golf club in Hayward, Calif., to thinking, “Why not golf ?” The result is what the club is calling “The Ultimate Skybox.” The calling card of the program is a 4 ½” wide by 7 ½” long embossed ticket, complete with hologram and, if requested, the purchaser’s corporate logo, sold to corporate clients in lots of 50, 75 or 100 rounds, designated as Par, Birdie or Eagle packages. At TPC Stonebrae, those guest rounds are valued at from $125 to $150 each, depending upon which package the corporate client purchases. We will leave you to do the math, but Jacobsen already has. “We’ve sold 13 packages since April, five of which came from referrals, and we have another two or three in the hopper that should close any day now – we’re entertaining two guys this morning who are interested for their businesses,” said Jacobsen recently “They’re priced at $7,500 for 50 rounds, $10,000 for 75, and $12,500 for 100, and if someone wants to buy more, we can work out a volume discount. Even if you only sell 500 rounds at $125 each, most clubs I know will take that all day long.” Corporate clients receive an individual “Skybox” ticket for each round purchased, and distribute them to their customers or guests to show at the club when they arrive to play. The barcoded ticket is logged into the club’s system, and guests can keep the actual ticket as a souvenir. Skybox guests are assigned a forecaddie and receive a gift package that includes a shoe bag from TaylorMade, a dozen Pro V1s, a $20 pro shop credit, hat and ball marker, and are assigned a day locker and a cart with their names on it. Clients also have the option of purchasing additional food and beverage credits for their guests as part of the package. There are few restrictions with the Skybox package, except that play is restricted to Tuesday through Friday (any time) and weekends after 11 AM, and no more than three groups of a client’s guests can play each day. Jacobsen is well aware that many clubs are leery of accepting that much outside corporate play, but he says that members still come first. “Even though we’re a private club, it doesn’t mean you can’t open up the blinders and think differently these days,” Jacobsen said. “We allow public play by unaccompanied guests because it’s sold only to corporations, but they have a forecaddie who will ensure pace of play and that the club rules are obeyed. If www.PellucidcorP.com Innovative promotion boosts revenues, keeps dues down and adds members V members come up behind, the forecaddie will instruct guests to let the members play through, and we haven’t had any problems.” In addition to the substantial – and welcome – additional revenue, there are other potential benefits to the host club. The club garners phone and email contact information from each guest, and follows up with membership solicitations. Since the promotion began, the club has added two memberships as a direct result of the program. “It becomes an introduction to the club [for Skybox guests], and they get a feel for what the member experience is like here,” Jacobsen said. “We’re a corporate-owned club, which keeps us free of assessments and helps us in the marketplace, but the additional revenue [from the Skybox program] allows us to keep the dues down.” The Ultimate Skybox program was originally budgeted to produce 18 package sales by the club’s fiscal year end on March 31 of 2013, and Jacobsen is confident they will reach that goal, but says, “We’re moderately happy with it so far, but I’m a capitalist at heart, and I’d love to have 24 by then.” All in all, The Ultimate Skybox becomes the ultimate winwin for the club – a potential membership marketing campaign that actually makes money regardless of whether it generates a single new member or not. n P E L LU C I D I S M Don’t confuse the golf “entertainment business” (i.e. the PGA TOUR and TV) with the golf “operational business.” While there is undoubtedly some “halo effect” to the popularity of the TOUR and the TV ratings at any given time, there has been no proven correlation in the modern era between golfers and frequency and the popularity of TV golf. While history suggests that the rise of TV golf and the popular figures of Palmer and Nicklaus advanced the “democratization of golf” in the 70s-80s (which did accompany a meaningful rise in participants and rounds), the post-2000 era has seen a healthy PGA TOUR and TV audience while the industry of golf has contracted and suffered. While the entertainment side of golf creates interest and curiosity, it doesn’t necessarily translate to new bodies or more frequent trips down the fairway. The Pellucid PersPecTive 9 http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - December 2012

The Pellucid Perspective - December 2012
Contents
Current industry issues a target-rich environment
Second time is the charm for Escena
Accelerating Supply/Demand Equilibrium: What Can We Learn From Other Industries?
Private club wins big with The Ultimate Skybox
Let’s make tee times like it’s 1999
November golf weather impact: ‘Tis the season of giving (back)
Columbus puts “premium” on golf, but is the price too low?
Esping’s EFO Financial acquires Colorado Brightwater Club
Anchors (rule) away!

The Pellucid Perspective - December 2012