If you're not running at ideal capacity, then you're running a discount program
It might not seem like you are but it’s true.
One of the most common objections we hear when talking to courses is “We’ve moved away from discount programs.”
But read on and you’ll see that you might be running a discount program anyway.
Proof Is in the numbers
Avg Revenue Per Available tee time - What you're actually charging
Forgive us, this section might get nerdy.
Avg Revenue Per Available Tee Time = (∑($Tn))/n
(Total revenue divided by all available tee times)
Example: Say you have 100 tee times at $50 each and you sell 70 of them.
Avg Revenue Per Available Tee Time =
(($0*(#of empty teetimes) + $Price(#of paidteetimes))/100
=
($0*30 + $50*70)/100= $35
You’re accidentally running a $15 discount.
And that’s ok. Let us show you how to use that to increase revenue (scroll to bottom)
The Perception and fear of Discounts
The bad rep that discounts have received is understandable.They can be bad for revenue management.
The way discounting is typically done (groupon, in your newsletter, in coupon booklets, etc) is unsegmented and unrestricted to reach the broadest audience possible in the hope of increasing volume.
And now you experience the horror stories.
“It brings in cheap customers.”
“Our averages went down.”
“We spent more on the distribution than we made in revenue.”
“We turned 30% of our full price rounds into discount rounds.”
The Solution
You MUST segment and restrict. And then do it again.
You need to:
1) Only focus on tee times that don’t bring your averages down, and
2) Find populations that fill a specific profile, and
3) Find a inexpensive ways to get discounts to the right people
4) Track if it’s working for ROI
5) Do it again for the next population.
It’s hard work! You can see why it’s tempting to go with a broad, unrestricted, unsegmented discount campaign.
An Easy Solution
Outsource Your Discounts, but do it right
When outsourcing your discounts, work with them to create a plan to achieve your goals. Most advertising companies will want to go broad, unsegmented and unrestricted. In their eyes, revenue is good revenue (even if it canabilizes your current revenue).
Stick to your guns. If they’re not a good fit, move on. You can do great things with the right partner or break it all with a bad partner.
Golfer Collective Solution
Free, Ridulously Easy to Track, and Low Maintenance
Golfer Collective’s default restriction is 24 hours advanced booking.
If you have a tee time open 24 hours prior, how often does it get booked by a full price customer? Probably not 100%, right?
We’re focused on the unused tee times in the equation
That’s our campaign, our focus, and what has made us different for the last 30 years. We’re built around solving a real issue for you and your course.
No revenue share. No upfront or ongoing costs. And less than 10 minutes per year in maintance. How’s that for ROI?
