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The following chart highlights the perils:. Coupon books are attractive, as the redemption rates are low, can be structured for off-peak times, and can attract new golfers. However, those programs most often favor the publisher over the golf course. While the above program may be onerous, coupon books can be structured that are beneficial to the course.

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Another discount medium that can be beneficial is third-party tee time firms. They often provide software services including email blast capability and development of web sites, affording access to a large database of golfers. The proper use of these tools can clearly generate incremental revenue, often from new customers.

While riled against by many for getting between the customer and the golf course and lowering effective yields, a negotiated agreement with firms that specified the following would be mutually beneficial to both parties:. A recent phenomenon that is drawing much attention is Groupon , a coupon emailed daily to subscribers. For each promotion, about coupons are purchased.

The additional revenue has been welcome during the slower part of the year.

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They bump you if they have another promotion they believe will generate greater revenue, and they pay you over 60 days. Highland Pacific, a new investor group, recently purchased Victoria, British Columbia. Seeking to attract new customers, the new owners tried Groupon with amazing success — sort of. The program was suspended when had —sold—the morning of the second day. A small group of their Loyalty Program members complained that Highland Pacific did not let them know and participate—a customer service problem out of the gate.

A more amazing example of the perils of Groupon was seen over the Holidays in Denver. The golf course manager specified that a cart was mandatory and that the tee times were only valid on Monday — Thursday, and Sunday after twelve. Unfortunately, Groupon failed to list the restrictions until four hours after the promotion had been displayed. At that time, coupons had been purchased. No consideration was provided to the golf course and to the potential public relations nightmare created. Incredible profit for Groupon for little work. Pure desperation? Are rounds at any price a solution?

Clearly not. Discounting, while a short-term fix, is a long-term path to failure. The winner in this game of discounting is already known, although not formally announced. Those golf courses that create value and protect their brand for the price charged will prevail. As for the others, they will be among the fodder of the to 1, golf courses forecast to close over the next 5 years. Available at www. Save my name, email, and website in this browser for the next time I comment. Course closed? Facebook Twitter youtube. By Jim Keegan on January 31, Management.

Known Facts These are very challenging times within the golf industry. Many Forms of Discounting Green Fees Have Emerged While masked as yield management, discounting has been a prevalent practice for nearly years. A Basic Primer Before selecting which discount programs to participate in, an understanding of the basic principles of yield management is beneficial. The only benchmark that truly matters is noted below: Many golf course managers are lulled into the economic trap of believing that selling more rounds, albeit at slight discount, is a best practice.

The simple answer is that the best programs are those that: Are sold at the least discount, i.

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Generate upfront revenue and are unlikely to be redeemed, i. Sell tee times that are otherwise unlikely to be sold, i. Monday-Thursday between noon and 2 p. Attract new golfers to the facility, i.

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Unfortunately, none of the most popular discount programs meet all of those achievements. What are the downsides to each program? While riled against by many for getting between the customer and the golf course and lowering effective yields, a negotiated agreement with firms that specified the following would be mutually beneficial to both parties: Defined value of the marketing services to be rendered by the third party.