Free coaching ‘will stop the downturn’

Alistair Dunsmuir
By Alistair Dunsmuir October 11, 2012 05:40

The manager of a London golf club has said that venues are struggling more now than ever before, and that those that don’t offer free coaching are likely to go under.

Neil Sjoberg, manager of Epping Golf Course, said that a mixture of the gloomy economic situation and a summer of heavy rain has meant that golf clubs have been hit hard.

“At the moment, the golf club business is almost freewheeling downhill. Clubs are diving into a very difficult time, much more than before,” he said. “I am getting this message from all around me.

“For the first time, at our new members’ evening, only 40 per cent of the expected new recruits turned up – usually we have more come than were invited.”

Despite this current downturn, Epping Golf Club has bucked the economic trends and performed well over the past five years, and Sjoberg is adamant why.

“I cannot imagine how any club can think for one second that they can survive, let alone grow, without a very active free lesson programme that is a big part of creating new golfers for their club,” he said.

“Any club without a weekly proactive section recruiting and training new golfers straight off the streets should be put out of their misery now!

“This is far more effective than marketing to golfers on others’ books with special offers.

“If every club in the UK trained just 10 new golfers this year the picture would be so much brighter.”

 

Alistair Dunsmuir
By Alistair Dunsmuir October 11, 2012 05:40
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5 Comments

  1. Sean Mysel October 13, 15:45

    Great article Al!

    I don’t think doing one particular thing will right the ship. That said, the power of zero or in this case free is huge. I did research on comparing adding free to a product vs discounting it…..adding value always wins. To give you an example, at my course in Northern California we ran a special for $45 on weekend afternoons that included golf, cart, and a small meal, we also allowed children 12 and under to come free.

    Result? We added $5000 in additional revenue per month. What was fascinating is people chose this over other courses in the area that discounted their rates.

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  2. Karl Hayler October 11, 20:49

    No doubt more people who learn can only be good for the game and clubs.
    However if some clubs don’t adapt and become more friendly and welcoming
    to beginners then potential members are surely lost.
    UK clubs face a dichotomy – Move with the times
    or stagnate its that simple!
    After all, golf clubs are in the leisure industry and that’s the fundamental fact most want to forget!

    Reply to this comment
  3. Alconcalcia October 11, 12:16

    Yes, it’s madness. I go each year about this time, usually to take in the last day of the Andalucian Masters (cancelled this year due to lack of funds) and playing three rounds has during our stay has never been an issue. Now though, we’re looking at almost 200 euros each for 3 rounds of golf – and the country is already dying on its arse tourism wise. Austerity measures I understand, but not when they discourage people from doing something because it has become too expensive.

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  4. Alistair Dunsmuir Author October 11, 12:04

    To quote Colin Jenkins, a golf club owner:

    “The Spanish tax authorities are clearly a bunch of idiots. They are about to impose a tax hike via IVA (the Spanish VAT) of 13% on all golf operators. The old rate of IVA for golf was 8% and the new lower rate was due to rise to just 10% – unpleasant, but expected. However, the Spanish tax authorities regard golf as a sport played by richer people and therefore capable of paying the full rate of IVA – this has risen from 18% to 21%. So Spanish operators have had an increase and a re-ranking of their IVA. The sport may be played by some rich people in Spain – it certainly won’t be affordable for many poor people once these tax rises take effect – but the cost in terms of employment and lost tourism will be very real. Golf is tourism in much of Spain and we think that this lunacy has been caught from the mindless rises to Portuguese golf operators’ VAT last year – a gift from their resentful and short sighted tax authorities. I recently returned from the magnificent resort at Troia, just south of Lisbon, and was struck by the lack of golfers – substantially higher VAT is already playing a part in blocking participation in the sport. How do you think the majority of clubs in the UK would deal with a 13% VAT hike – proprietary clubs have been absorbing this for years!”

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  5. Alconcalcia October 11, 11:53

    I’m not surprised golf clubs are struggling in the current climate. My local club wants £65 a round, whereas if I drive 10 miles down the road I can play for £10 after 1pm. Even worse, Spanish prices, given their parlous economic state, never cease to amaze me. I;m out there next week and the recent rise of local tax from 8 to 21% means that an average 2 ball with buggy in Spain right now starts at around the £50+ each mark. There must surely be tumbleweed blowing across many courses at those kind of prices.

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