The Pellucid Perspective - February 2011 - (Page 2)

MARKETING Is Groupon good for golf: The sequel Attack of the clones By Harvey Silverman I n the last Pellucid Perspective we seemingly unlocked a put an offer “in play” in the last week. This course decided to new topic for popular discussion, measured by the number test the concept and was motivated by having lost two weeks of comments we received both written and at last month’s of business due to the horrible winter weather. This became a State of the Industry presentation at the PGA Merchandise revenue-replacement opportunity. The offer was $39, a 56% disshow. And now, as we predicted, golf-centric Groupon clones count from the $89 rack rate, valid Monday-Friday and after have appeared from a galaxy not so far away. noon on weekends. It will expire on April 15. IdealGolfer sold The three we are aware of include Group Golfer (www. out 750 coupons in less than two days! The course will receive a, a company out of Michigan; IdealGolfer check within five days exceeding $20,000; and IdealGolfer will (, a division of Avid Golfer in Texas; and earn over $10,000 for a decent day’s work. the newest,’s Schwaggle But let’s look a little closer at how ( All three this operator analyzed his situation and use similar formats and graphic presenpossibilities and manufactured a deal In fact, these entities tations in representing the golf course that is clever in its construction. The illustrate quite clearly how $89 rack rate, from which the discount and the daily deal, essentially replicating Groupon. In fact, these entities illuseasily Groupon’s concept, is calculated, does not take effect until trate quite clearly how easily Groupon’s April 1. Current rates are $49 weekday presentation, business concept, presentation, business model, and $69 weekend. So the coupon buyer and technology can be duplicated. Or, model, and technology can still gets a deal if redeeming before April cloned. On top of this, word on the 1 and a better one if he waits; and the be duplicated. Or, cloned. operator has limited his potential exstreet is that Google has been testing its own Groupon-like product which will On top of this, word on the posure after the higher rate takes effect. be far-reaching in what it offers, and the Some may consider this misleading, but street is that Google has 750 buyers did not. The structure of this potential for Empire status as Google is the most visited website on the Internet. deal also creates a possibility of greater been testing its own Google, along with the golf-centric sites “breakage”, as some buyers who choose and a number of others, are testament Groupon-like product which to wait only have two weeks to redeem that this business model is extremely will be far-reaching in what at the maximum advantage, increasing profitable. Google may also be telling the likelihood that they will not. We’ll it offers, and the potential try to provide an update in a future issue Groupon, “You should have taken our $6 billion when we offered it to you.” of the Pellucid Perspective. for Empire status as So are the golf-centric clones offering We have a little intelligence on AcGoogle is the most visited’s Schwaggle. It is being test anything different? Maybe. A representative from Group Golfer told us that marketed in a couple of major cities, San website on the Internet. they ask for as little as a 10% commisFrancisco and New York City, as part of sion from sales of a “compelling special” a broader marketing effort to increase offer from a golf course. Their website the brand awareness of Active and its shows sales of 99 to 432 coupon deals, various business components. Active with deals ranging from 52% to 73% off regular prices. Group and its Active Network have broad reach, not only across its cliGolfer may be making a few hundred to $1000 in commissions ent golf courses but also across other entities where Active has for a day’s work. Not bad considering overhead may be no more software residing, enabling it to reach “opt-in” consumers in a than a computer, a graphic web person, an Internet connection, a variety of ways. How many consumers? How about 100 million? broadcast email program, and independent outside salespeople. It may be a smart business move on Active’s part that they might IdealGolfer asks for a 40% commission but may settle for take to other verticals where they operate. 30%. This is more in line with the Groupon model. IdealGolfer So, count on the Empire knocking on your door, either in the is owned by the company behind Avid Golfer magazine in Texas form of Groupon ( Jabba the Hut?), or a Groupon clone. Beware and has the advantage of easy communication with their sub- the light sabre, which can slice and dice you into small pieces if scribers. We are following one client in the Dallas market who you are not careful. And may the Force be with you. n February 2011 2 The Pellucid PersPecTive

Table of Contents for the Digital Edition of The Pellucid Perspective - February 2011

The Pellucid Perspective - February 2011
Is Groupon Good for Golf: The Sequel
Solving the Professional Payment Predicament
Jan 2011 YtD Weather Impact, Dec 2010 YtD Utilization
Reynolds Plantation Courses on the Market
Atlanta, GA Core Business Statistical Area (CBSA)
Alternative Golf? Or an Affirmation of How Many of Us Play Already?
Custom Clubfitting in 2011: A Solution but Not a Cure
Pap-Agony for Phoenix Muni
Show Time - Again

The Pellucid Perspective - February 2011