Golf Industry Economy – A 10-year snapshot

Golf Industry Economy – A 10-year snapshot

A good summary  of the challenges in the industry over the last decade from the National Golf Foundation.

The National Golf Foundation Releases 2010 Opening & Closing Report

These are some of the details emerging from NGF’s newly released Golf Facilities in the U.S. report, 2011 edition. Other highlights:

• There were openings in 29 states.

• Of the 46 openings, more than 60% were daily fee

• There are currently more than 80 U.S. golf course projects under construction (excluding renovations)

• States with the most openings in 2010 were Pennsylvania, Illinois, Florida, North Carolina and Texas

• The region with the most courses currently under construction is the South Atlantic with 16.5 courses.

• The total facility count at the end of 2010 stood at 15,890, 167 less than the all-time high of 16,057 in 2004. And the current number of 18-hole equivalents is 14,904.5, which is less than the number of facilities due to the large number of stand-alone 9-holers (4,382).

Golf Facilities in the U.S., 2011 edition, is now available. We encourage members to download this report but please share it only with others within your own organization.

Most Recent National Golf Rounds Played Report

This week we all were able to look at the the most recent report of rounds played in the United States.  This two-page summary report can be found by clicking on National Golf Rounds Played Report.  This report compares rounds played this against rounds played in the same time period last year.  Knowing that overall rounds played decreased by 10% in the last decade, this report paints a mostly bleak picture of state of the industry for the first 2/3's of 2010. 

We are being told that the country is out of the most recent recession, yet we are still feeling the pain of this recession in most areas of business. The overwhelming majority of industries are affected by recessions.  Only a few, such as discount retailers and core food suppliers, tend to remain stable.  The experts say "(w)hile golf is not entirely recession-proof, the golf industry does appear to be one of the last to fall during a recession and one of the first to rise after a recession.  The golf industry tends to be buoyed, in all likelihood, by consumers at the upper end of income brackets."  I guess this means that we should not forget that circumstances can always be worse.

On a more positive note, let's remain optimistic that the results of upcoming elections will bring some control and moderation to growth of government, growth of taxes and hopefully an effort to create circumstances where American  business can begin to use accumulated cash to re-energize the economy.  By next spring all of us in the golf industry could be looking at tremendous opportunity to reverse the trends of the last decade recapture revenue and profit that evaporated in the fist decade of this century. 

Now is the time to prepare for next season.  This might be a good time to look at earlier posts to this blog: Growing a Business in Tough Times, Text Messages & Twitter, Electronic & Social Media Marketing Options and Closing the Loop.

Let's start today to build the momentum for a great 2011 season. 

New Federal Government Golf Rules

I don't know the source of this joke but given current events in our nation it should garner a chuckle and may be a valid commentary on the over-reaching of the Federal Government.  Thank you to my friend Mike LaFuze for sending me this email:

"President Obama has recently appointed a Golf Czar and major rule changes in the game of golf will become effective in August 2010.  This is only a preview as the complete rule book (expect 2000 pages) is being rewritten as we speak. Here are a few of the changes.
Golfers with handicaps:  

• below 10 will have their green fees increased by 35%.
• between 11 and 18 will see no increase in green fees.
• above 18 will get a $20 check each time they play.

The term "gimme" will be changed to "entitlement" and will be used as follows:
-handicaps  below 10, no entitlements.
-handicaps from 11 to 17, entitlements for putter length putts.
-handicaps above 18, if your ball is on green, no need to putt, just pick it up.
 
These entitlements are intended to bring about fairness and, most importantly, equality in scoring. In addition, a Player will be limited to a maximum of one birdie or six pars in any given 18-hole round. Any excess must be given to those fellow players who have not yet scored a birdie or par. Only after all players have received a birdie or par from the player actually making the birdie or par, can that player begin to count his pars and birdies again. The current USGA handicap system will be used for the above purposes, but the term 'net score' will be available only for scoring those players with handicaps of 18 and above. 
 
This is intended to 'redistribute' the success of winning by making sure that in every competition, the above 18 handicap players will post only 'net score' against every other player's gross score. These new Rules are intended to CHANGE the game of golf.
 
Golf must be about Fairness.   It should have nothing to do with ability, hard work, practice, and responsibility. This is the "Right thing to do". "

NOT!

Telephone Calls Received at the Pro Shop

There is always time for a little bit of humor during a long day.  A friend of mine (Dean Hutson), sent these to me.  We are not sure of the origin, but anyone who has been on the receiving end of telephone calls at a golf course or range could find these to be believable.  I offer you these unedited transcripts for your entertainment pleasure.  

Telephone Calls Received at the Pro Shop

Staff:  Golf course, may I help you?
Caller:  What are your green fees?
Staff:  38 dollars.
Caller: Does that include golf?
 
Staff:  Golf course, may I help you?
Caller:  Yes, I need to get some information from you.  First, is this your correct phone number?
 
Staff:  Golf course, may I help you?
Caller: Yes, we have a tee time for two weeks from Friday. What's the weather going to be like that day?
 
Staff:  Golf course, may I help you?
Caller:  Yes, I had a tee time for this afternoon but I'm running late.  Can you still get me out early?
 
Staff:  Golf course, may I help you?
Caller:  Yes, do you have one of those areas where you can buy a bucket of golf balls and hit them for practice?
Staff:  You mean a driving range?
Caller: No, that's not it..,,,
 
Staff:  Golf course, may I help you?
Caller: Yes, I'd like to get a tee time tomorrow between 12 o'clock and noon.
Staff:  Between 12 o'clock and noon?
Caller: Yes.
Staff:  We'll try to squeeze you in.
 
Staff:  Golf course, may I help you?
Caller:  Do you have any open tee times around 10 o'clock?
Staff:  Yes, we have one at 10:15.
Caller:  What's the next time after that?
Staff:  We have one at 10:22.
Caller:  We'll take that one. It will be a bit warmer.
 
Staff:  Golf course, may I help you?
Caller:  How much to play golf today?
Staff:  25 to walk, 38 with a cart.
Caller:  38 dollars?
Staff:  No, 38 yen.

 Staff:  Golf course, may I help you?
Caller:  What do you have for tee times tomorrow?
Staff:  What time would you like?
Caller:  What times do you have?
Staff:  What time of the day?
Caller:  Any time.
Staff:  Morning or afternoon?
Caller:  Whenever.
Staff:  We have 16 times open in the morning and 20 open in the afternoon.  Would you like me to read the whole list?
Caller:  No, I don't think any of those times will work for me.
 
Staff:  Golf course, may I help you?
Caller:  Do you have a dress code?
Staff:  Yes, we do. We require soft spikes.
Caller:  How about clothes?
Staff:  Yes, you have to wear clothes.
 
Staff:  Golf course, may I help you?
Caller:  Yes, do you have a driving range there?
Staff:  Yes.
Caller:  How much for a bucket of large balls?
Staff:  Sorry, we're all out of large balls. But we can give you twice as many small balls for the same price.
 
Staff:  Golf course, may I help you?
Caller:  Can I get a tee time for tomorrow?
Staff:  Sure, what time would you like?
Caller:  Something between 9 o'clock and 10 o'clock.  In the morning, if possible.
 
Staff:  Golf course, may I help you?
Caller:  Do you rent golf clubs there?
Staff:  Yes, they're 25 dollars.
Caller:  How much to rent a bag?

Staff:  Golf course, may I help you?
Caller:  Yes, my husband just called me on his cell phone and told me he's on the 15th hole.  How many more holes does he have to play before he gets to the 18th?

Staff:  Golf course, may I help you?
Caller:  Yes, do you have a driving range there?
Staff:  Yes.
Caller:  How much for a large bucket?
Staff:  Four dollars.
Caller:  Does that include the balls?
 
Staff:  Golf course, may I help you?
Caller:  Do you have a twilight rate?
Staff:  Yes, I it's 15 dollars after 2 o'clock.
Caller:  And what time does that start?
 
Staff:  Golf course, may I help you?
Caller:  Yes, I'd like some info about your golf course.
Staff:  OK, what would you like to know?
Caller:  I don't know, that's why I called.
 
Staff:  Golf course, may I help you?
Caller:  My kids just came home with pockets full of range balls and said they stole them from your driving range  Would you like to buy them back