Mr Business Golf

There is no getting around the fact the Golf Industry is feeling the impact of the drop in the economy.  I will be reporting frequently on this issue as more cracks in the mantel of the golf economy come to the surface.

Right now golf facilities, high and low, are shoring up for the economic storm. In his recent Outside the Ropes tid-bit article email, NEXT ACT: A GOVERNMENT BAILOUT FOR GOLF?Jim Koppenhaver of Pellucid Corp offered a pretty concise view of what golf facilities are dealing with today and to advise them there will be no government bail out for the Golf Industry.  Duh!

Many golf facilities have placed them self into the situation they are currently in financially by mirroring what the businesses the government now is bailing out did.

While much of the golf media probes into the impact of the current economic crisis on the PGA TOUR, I’m seeing a more immediate and eerie similarity in the economic health of a number of golf facilities.

When you break it down, here’s how golf’s increasing economic vice mirrors the financial hole the US has dug itself into:

• We built (or bought into) things that were beyond our short-term economic reach believing that either our financial means or the asset’s appreciation would increase
• We financed our aspiration with instruments that deferred the pain but pack a punch when they eventually mature
• Our expenses spiraled upward and ate up much of the operating profit or asset equity that was earmarked to cover the future bet
• In the face of tough decisions, there’s no one to accept responsibility on the business side and some sense of entitlement by consumers

I will agree, the Golf Industry is on its own in righting its own economy and existence. However, unlike the businesses that are being bailed out by the government, golf businesses will need find ways to take the economic hit to the chin and still remain standing to fight on for the next punch coming…consumer apathy.

Not all is bad with the golf industry.  There were some prudent moves made in several PGA Events to cut costs adn manage expenses better.  That makes the sponsorship packages for business people of more value in this economy.

However, like what will take place in the overall economy, there will be adjustments to the fabric of the golf industry.  Right now the dust is too thick to see clearly where those adjustments will be, but one thing is for certain….those businesses who are fighting moving into new technology so a broader market can be reached and to balance their appearance online and offline will be the first to evaporate.

Trust is going to play a huge factor in the way businesses and consumers do business.  A business has got to find ways to demonstrate its trustworthiness.  The way the business game will be played from here on out is the more a company can get real live face time with their consumers the more likely they are going to be able to hold on to a market share.  Those businesses that do things to personally talk to the market and not just throw huge ads or videos at the consumers because the CFO shows them to be more affordable, will be the businesses the consumers will trust.

Trust is going to become a factor of epic proportions to a business’ survival and there are very few ways around building trust without a personal eye-to-eye, face-to-face physical appearance in the market.

Golfers are going to become the pickiest of consumers.  Naturally, the consumer is going to pull back their spending and only open the checkbook to businesses, or in this case Golf Facilities and Golf Businesses, they personally have some trust of getting their best value for the dollar.

A new social and political climate will develop amongst the golfing consumers.  More frugalness and shopping for bargains will be done.  Business Golfers will start looking to find even more sound effective ways to combine business activities with golf and businesses to facilitate their golf activities for them.   All of this will force these struggling golf facilities to offer better rates and green fees in order to stay in business.

The climate of economizing golf will even affect the willingness of ‘fat cats’ who will still find it easy to throw down $300 for a green fee, but will be apprehensive to do so since it will place them in an unpleasant light within the global golfing community they do business.

In this new golf economy that will evolve from this recent collapse two things will happen.

1. Businesses who stay totally online will dry up and more brick and mortar ONLY businesses will fail due to their lack of balancing their online and offline presence in the global market.
2. Whoever can stand up to producing higher quality and back the quality with service is who is going to survive.

I’ll be back frequently to report on what else I have found that will predict were the golf industry will go after this economic change.  Until then, enjoy my New Book and learn one of the best ways to build that trust that will be needed to survive in business today.

Let me know how I can help.

I hope you enjoy it…….