The Pellucid Perspective - March 2024 - 5

questions revolve around price adjustments and how much upside
may still exist in their market. That Center Ring of inflationary
lions and tigers has them thinking about what happened to
Siegfried & Roy. The Private Equity people are also more than a
little interested in upside potential, too.
The Pellucid Golf Local Market Analyzer gives us a myriad of
data pinpointed to the local geography:
* Base Demographics and growth history with future
projections
*
Golf specific Participation and Frequency
* Age, Income and Ethnicity adjustments
* Rounds Demand and Golfer Base History
* Golf Course Supply, Price segmentation and weather
adjusted utilization
The GLMA battery of reports provides basic baseline data
to determine market share for Rounds and number of golfers. It
also can be used to estimate " upside " in terms of how much unused
inventory may be in a given market. To our knowledge, the
GLMA is the only single source for obtaining this compilation
of data in one place.
It really doesn't matter whether our base diagnosis is positive
or negative. Whether it's fixing underperformance or unlocking
upside potential, the next step is Treatment. Your primary care
physician would either prescribe some medication (if it's a common
problem) or bring in a specialist to further address the situation
(e.g. knee surgery after you tried pickleball and found out
why the orthopedists in Naples are all smiling).
The specialist(s) may mean some new appointments - will
improving our conditions help? Can we raise prices or should
we consider Dynamic Pricing? Are we seeing any shifts in play
patterns? Can we adjust our current discount structure (season
passes, senior rates, etc.)? Do we spend more marketing dollars?
Can we improve our customer communications?
Whatever treatment options you select; the next step is folwww.PellucidcorP.com
lowing
up. For that, you're going to need comparative reporting.
This is where it gets a little tricky. Your Tee Sheet/POS/PMS systems
do a generally poor job of providing comparative data - particularly
in Day of Week and Hourly Revenue. See graphic above.
We had a great example this month. One of our long time
academic clients provides advisory services to a variety of courses
in multiple markets. They were able to assess the success of course
condition improvements made at some courses and determined
that healthy local market dynamics rewarded them with better
than market improved performance while courses with poor
market dynamics showed little benefit from the spending to enhance
course conditions.
We have other recent and current projects with similar components.
Adjusting prices to pay for needed improvements, specific
expense issues and the addition of enhanced amenities all
share the common thread of needing to assess the potential that
the changes will boost revenues and/or help maintain current
profit margins.
The other major component is the ability to track your customer
levels. Are they continuing to show up as your pricing
decisions take effect? Are your transaction numbers and values
increasing in tandem with your adjustments?
We are adding those customer analytics into our GMRC/
Metolius arsenal of metrics. The goal is to integrate that data
with a communication methodology with a prescribed set of basic
proactive steps. There are some proven things you can do to
protect the health of your customer franchise.
" I am an acrobat, walking a tightrope of fortune and fame "
(Counting Crows, " Mrs. Potter's Lullaby " ). In light of our current
prosperity tempered with pricings dilemmas brought on by
increasing expense pressures; the real question will be if the golfer
stays involved at the present day circus level of " activity and interest " .
How will you find the balance between pricing, consumer
engagement and profitable operations? If you don't have the
proper web of comparative metrics; you may find yourself working
without a net.
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The Pellucid PersPecTive
5
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The Pellucid Perspective - March 2024

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