The golf industry may be behind in many ways, but it is catching up slowly but surely. An evolved pricing model may be your new boost to growing revenue at the golf course. It is important that you understand exactly what to look for when searching for a new system. You can use this as a guide to help you learn about golf management software.
Every Tee Time is Unique
Each tee time should be treated as its own entity in terms of pricing. For example, it is common to see an array of pricing between weekend and weekday tee times or morning and evening tee times, which is referred to as static pricing and is not always effective. Whereas dynamic pricing uses the concept that the value of every tee time expires and the value fluctuates within its expiration date. This strategy allows you to adjust pricing in relation to a customer’s willingness to play and when the booking is made.
Data analysis systems have been used to execute this. Static pricing strategies are considered outdated by many. If you find it difficult to increase round bookings, it may be worth your while to get in every possible dollar out of each tee time.
The Days-out Model
Your specific market will make all the difference when your tee times fill up. When one part of the day fills up much faster than the others, that will tell you the value of tee times in reference to the time of day.
When golf course operations use dynamic pricing software tools, they can automate pricing changes when a popular time of day fills up. For instance, if your morning slot is full a week in advance, the software will automatically raise the prices by an indicated amount. Being flexible with the value of individual tee times can make all the difference. Using desirability is similar to the concept of supply and demand. This method will also encourage players to book further in advance, allowing you to plan management activities more effectively.
Modern software can give you more control, using both data and business intelligence for smoother operations and increased profits.
The Human Touch Model
Business intelligence software is the basis for dynamic pricing strategy. Since prices are only adjusted based on one variable and respond to that alone. It is beneficial to be proactive and predict a demand spike before tee sheets fill up to adjust prices accordingly. So many variables impact tee time value, such as weather, events in the area, etc. All of these factors can lead to changes in demand. Humans should manage services for a true analysis.
The Power of Data
Data is essential to understand how prices should be adjusted. High-tech software integrations can significantly improve data collection. For example, CRM, POS, and marketing can be distributed seamlessly. Using these tools and the sales and inventory data stored in the POS can help you understand your demographics and what they spend when they play. These metrics are also used to understand your high and low seasons.
It is recommended to do an audit of your data to clarify what is truly valuable and what can be discounted. You may even learn that you can increase revenue when a local sporting event or a seasonal tourist attraction will bring in more bookings.
The Drawbacks
There are drawbacks to dynamic pricing as the software could potentially devalue tee times in the long run and clog up the tee sheet. And it also could lead to inconsistency in pricing, making it seem unfair between members.
You may consider allowing players to bid on the top five weekend start times to be transparent about how much each player is paying. This could help issues with pricing discrepancies while also increasing revenue. Be sure to secure tee to green insurance to protect your business.
About T2 Green Insurance
T2Green Insurance provides the best customized and comprehensive protection for your club, resort, or golf management business. Our niche expertise and sole focus is insuring this class, while our industry professionals are dedicated to providing exceptional results so that you can feel confident with your coverage. T2Green offers specialized coverage options that are unique in the industry. With our exclusive program unlike anything else on the market, you can feel peace of mind with protection that is tailored to your club’s unique needs. T2Green is driven by innovation and responsiveness in both coverage solutions and customer service. We understand the challenges that are presented in varying locations and seasons to write policies for clubs from coast to coast and everywhere in between so you can operate with confidence, no matter what conditions arise. Reach us at 844-223-9005 with any questions or so we can begin tailoring a package that works best for your club.
