The Pellucid Perspective - August 2017 - 2

GOLF INDUSTRY
OPERATIONS

Like snowflakes, each golf course is unique
By Stuart Lindsay

I

put Pellucid's Golf Local Market Analyzer (GLMA) platform to work overtime in July. I ran over 20 data sets in 3 major Midwestern markets. Two projects were related to relatively big municipal golf operations that are wondering what the
future holds, and the third was for a single course owner asking
the same question. We sometimes seem to emphasize the common challenges all courses may share in a given market and the
national issues of declining golf "relevance," but every golf course
really is a unique "snowflake" and should be looked at individually on a number of levels.
In addition to the work above, there was this excerpt from an
article posted by Club & Resort Business on its web site August
17 about Tucson's struggles with municipal golf course management: "It is likely that golf in the current format will continue to
operate with a thin financial margin and make minimum repairs
to keep the courses open. Funding will not be available to make
significant repairs and improvements to keep the courses a quality experience," Ortega (Tucson City Manager) said.
We have seen this question playing out in municipalities
across the US - Baltimore, Chicago, Los Angeles, Denver, Twin
Cities, Atlanta, Detroit and others. In most cases, the issue of
"deferred maintenance" is a consistent theme as golf courses and

go either way. Based on his assessment, he is making a few assumptions:
*
*
*
*
*

His course is good, but not great.
His location is OK
His demographics are currently OK, but might be
changing
He has a decent group of "core" customers
He has competition

Fortunately, most of my friend's assumptions are correct, but
based on our last look at his course in 2008 and our current data,
there are some changes in his demographics. They also plopped
down one of these "feel good" quasi-private/public premium
courses a few years ago which has had an impact on his immediate market. ( Jim Koppenhaver's recent article on the proposed
Tiger Woods Chicago project is a must read available as a single
issue Outside the Ropes at www.pellucidcorp.com). Wayne is
also very correct in realizing he has a very challenging road ahead.
As we dig into the GLMA data for these different projects,
it is interesting to see how much variance there can be, even for
courses that are only 10 - 20 minutes (or miles) apart. In one case,

"We've seen a lot of trends forecasting a dim future for golf.
Basically it's going to be a survival of the fittest and last course
standing syndrome. Basically a third of them will survive
regardless of what happens. There's a third that doesn't have a
chance. But most importantly there is a third that might make it
with some steady progress by adding a few changes annually and a
handful of good people making it happen." -Wayne Yamaguchi
municipalities wrestle with both declining participation and demographic changes.
I also ran across this interesting analysis from a friend of mine
who runs a golf course, Wayne Yamaguchi in Benton Harbor,
MI: "We've seen a lot of trends forecasting a dim future for golf.
Basically it's going to be a survival of the fittest and last course
standing syndrome. Basically a third of them will survive regardless of what happens. There's a third that doesn't have a chance.
But most importantly there is a third that might make it with
some steady progress by adding a few changes annually and a
handful of good people making it happen."
Wayne continued by asking his fellow members of the Old
School, New Tools online Facebook group for any ideas he could
"borrow" because he sees his facility as one of those that could

2 The Pellucid PersPecTive

one course has an Income Index 15 points below average and an
Ethnicity Index 30 points below average and is only 10 minutes
away from another course where Income and Ethnicity are both
above average. In another market, one course has access to 4 times
more population than a course less than 20 miles away - and both
are effectively equi-distant from the city center. Neighborhoods
change and population growth is not uniform.
Also, as we look closer at rounds and revenue data on top of
the GLMA basics, we are paying much more attention to "local"
factors. We know that time is a barrier and the decreased willingness of golfers to travel further only adds to that issue. We are
finding that the 10 and 20 minute (mile) radii are much more indicative of a course's potential for success or merely survival. Paying attention to the demographic projections for future growth is
August 2017


https://www.pellucidcorp.com/online-store/category/10-outside-the-ropes-single-issue http://www.pellucidcorp.com

Table of Contents for the Digital Edition of The Pellucid Perspective - August 2017

TOC
Like snowflakes, each golf course is unique
Golf equipment direct-to-consumer distribution: Force to be reckoned with or passing fad?
Parsons and PXG take club fitting to a new level, and price point
July golf weather impact: Much-needed national “bounce”
Boston metrics favorable, but more rounds needed
Moving day for the PGA, and Justin Thomas
The Pellucid Perspective - August 2017 - TOC
The Pellucid Perspective - August 2017 - Like snowflakes, each golf course is unique
The Pellucid Perspective - August 2017 - 3
The Pellucid Perspective - August 2017 - 4
The Pellucid Perspective - August 2017 - Golf equipment direct-to-consumer distribution: Force to be reckoned with or passing fad?
The Pellucid Perspective - August 2017 - 6
The Pellucid Perspective - August 2017 - Parsons and PXG take club fitting to a new level, and price point
The Pellucid Perspective - August 2017 - 8
The Pellucid Perspective - August 2017 - July golf weather impact: Much-needed national “bounce”
The Pellucid Perspective - August 2017 - 10
The Pellucid Perspective - August 2017 - 11
The Pellucid Perspective - August 2017 - Boston metrics favorable, but more rounds needed
The Pellucid Perspective - August 2017 - 13
The Pellucid Perspective - August 2017 - 14
The Pellucid Perspective - August 2017 - Moving day for the PGA, and Justin Thomas
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202101
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202012
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202011
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202010
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202009
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202008
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202007
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202006
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202005
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202004
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202003
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202002
https://www.nxtbook.com/nxtbooks/pellucid/perspective_202001
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201912
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201911
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201910
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201909
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201908
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201907
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201906
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201905
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201904
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201903
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201902
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201901
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201812
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201811
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201810
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201809
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201808
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201807
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201806
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201805
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201804
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201803
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201802
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201801
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201712
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201711
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201710
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201709
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201708
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201707
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201706
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201705
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201704
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201703
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201702
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201701
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201612
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201611
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201610
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201609
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201608
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201607
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201606
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201605
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201604
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201603
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201602
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201601
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201512
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201511
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201510
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201509
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201508
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201507
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201506
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201505
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201504
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201503
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201502
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201501
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201412
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201411
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201410
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201409
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201408
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201407
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201406
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201405
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201404
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201403
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201402
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201401
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201312
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201311
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201310
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201309
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201308
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201307
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201306
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201305
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201304
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201303
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201302
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201301
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201212
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201211
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201210
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201209
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201208
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201207
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201206
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201205
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201204
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201203
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201202
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201201
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201112
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201111
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201110
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201109
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201108
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201107
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201106
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201105
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201104
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201103
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201102
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201101
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201012
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201011
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201010
https://www.nxtbook.com/nxtbooks/pellucid/perspective_201008
https://www.nxtbookmedia.com