Opportunities during the economic downturn

National leaders spoke about strategies to grow the game and survive the recession at the Ohio Golf Summit.

Though economic uncertainty is top of mind for everyone, the national golf industry leaders who spoke at the Ohio Golf Summit strayed from doom-and-gloom. Instead, they identified opportunities for growth during the economic downturn.

“People want to get away from it all, so they’re still going to recreate,” said Joe Steranka, CEO of the PGA of America, who was the keynote speaker for the day-long event, which took place Dec. 9 at the Columbus (Ohio) Convention Center in conjunction with the Ohio Turfgrass Conference & Show. “In times like these, we need people to lead with a smile. We’re asking golfers to come and spend their time and money with us, and we need to give them a great time to keep them coming back.”

Jim Singerling, CEO of the CMAA, cautioned that the downturn won’t be easy, but facilities that commit to adding value to membership will prosper because golfers will seek to spend free time in predictable environments, which is what a club should be.

“You have to make membership – public or private – more important than anything in their lives, so it’s too important to give up,” he said, citing the following ways clubs can add value:

  • Offering extraordinary service – better than ever before.
  • Identifying with members – not avoiding them. “Call members who haven’t been there in a while,” Singerling said. “Say, ‘I’m just checking in to see if there’s anything I can help you with?’”
  • Making the club an extension of the home – a predictable, family environment.

“During times like these, staff and members will look to you for leadership,” Singerling said. “Communication will be important.”

He said managers should practice emotional control, provide frequent updates and lead with realistic optimism.

The question about the relevance and survival of the private club industry came up several times during the meeting. Singerling left no uncertainty about his stance on the issue.

“We’re here, we’re here for the long term, and we will survive this economic downturn,” he said, noting the private club industry generated $14.3 billion last year and pointing out the industry’s history of survival through several wars, the Great Depression, the savings and loan woes of the 1980s and 9/11.

Attracting golfers

To prosper during the downturn, the golf industry may need to stray from some of its conventions, said Charlie Birney, president of the NGCOA and president of Atlantic Golf, Edgewater, Md.

“In this economy, we should really think about nine-hole play,” he said, adding it’s especially an opportunity for tournaments, outings and as a way to get timid golfers back on the course.

For example, one of his facilities offers a $15 nine-hole round at 7 a.m. on Friday mornings. It’s attractive to timid golfers in the business world who like to be in the office before 10 a.m.

Birney also lauded the Get Ready Golf in Five Days player development program, a recently announced Golf 20/20 initiative. It’s perfect timing, he said, considering the budget cuts some facilities are facing.

“It’s a marketing campaign that you don’t have to design,” he said of the program that seeks to develop 700,000 new golfers by 2013.

Steve Mona, CEO of the World Golf Foundation and former CEO of the GCSAA, spoke in detail about the Get Ready Golf program, and Mark Woodward, CEO of the GCSAA added that the association is interested in developing a superintendent component of the program to highlight the profession. A superintendent’s role may include instructing golfers how to properly rake, enter or exit a bunker.

Telling golf’s story

At the same time, the golf industry needs to puff out its chest a bit by promoting statistics about golf’s economic impact to make the public aware of golf’s power as an industry, Steranka said.

Earlier in the day, members of the Play Golf Ohio committee presented the results of the state’s golf economic impact study, which was published last year. Golf 20/20 has commissioned 12 state reports since 2006.

“It’s our job to get educated about these numbers so we can educate state representatives, local officials and everyone in government,” Steranka said, suggesting industry members identify comparisons unique to their communities.

For example, the golf industry in Louisiana is larger than the seafood packaging industry. In Iowa, it produces more revenue per acre than the soy bean industry. In Virginia, despite a reputation as being a water waster, golf uses only 0.4 percent of the state’s water and nets higher economic returns per acre than grape or grain growers.

“You can drive the message with your elected officials better than I can or a paid lobbyist can,” he said.

Steranka charged attendees with the following mission:

  • Become familiar with golf’s talking points;
  • Be a grassroots ambassador of the game and business of golf; and
  • Take the message to your course and community and communicate the value of golf to every level of government (consider state and local versions of National Golf Day).

Research information about the benefits of the game and business of golf are available at www.golf2020.com.

 

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