The Pellucid Perspective - October 2020 - 2

PHOTO BY AAKANKSHA PANWAR / UNSPLASH

PRICING &
REVENUE

Positive Pandemic Dilemmas
New challenges stem from too much demand
By Stuart Lindsay

I

t's the season for it, so, at the risk of alienating some readers;
I have to talk about politics. Before you stop reading, or hang
up on this robo-article; I'm going to talk about local politics
and some interesting dilemmas facing some golf courses due to
the surge in demand for tee times.
One of our long time clients called with a problem. The local
City Council was getting complaints from residents that aren't
able to get on the city run course. The Council's reaction was to
drastically overhaul reservation procedures giving residents earlier access than previous policies granted. The impact on "nonresident" play is of great concern for the management of the
course - this is a very successful facility that has provided excess
cash flow to the city for years.
First, the differential between "resident" and "non-resident"
rates is significant with residents getting a 50% lower rate. Reservation policies, however, were uniform for both groups. A
"member fee" giving reservation preference was also available to
residents and non-residents alike. Using these policies over the

2 THE PELLUCID PERSPECTIVE

years has resulted in about 80% of the rounds being played by
"non-residents" - even at the much higher rates, they have been
far more active supporters than the "residents". With the Council's changes, a shift to 50% resident play will reduce revenues by
about $300,000; or more than 10% of total revenues.
Our first step is to run the Pellucid Golf Local Market Analyzer battery of reports. We last looked at this data for them about
7 years ago and a lot has changed. In addition, we added two new
reports when we updated the GLMA platform in 2020:
1.
2.

Golfer Base History - Tracks change in Golfer
Participation 2005 - 2019
Rounds Played History - Tracks Rounds 2000 - 2019

When we looked at Rounds Played, we see they have stayed
relatively stable at just over 1,200,000 rounds since 2000. The
minor decline of -2.1% compares very favorably with the -16%
decline nationally over the same period. This Rounds Played data
OCTOBER 2020



The Pellucid Perspective - October 2020

Table of Contents for the Digital Edition of The Pellucid Perspective - October 2020

TOC
Pandemic creates an unusual, upward pricing dilemma
How high is up? Based on current information, no one really knows
Are we currently selling golf below cost (yes); why?
September GPH slight down, current dynamics will absorb that
Aug Utilization again up double-digits, weather not a factor in current surge!
Pittsburgh #24 in new ranking, aided by better-than-average supply-demand balance
16 Activities; Transacts & For Sales comprise bulk of activity
The Pellucid Perspective - October 2020 - TOC
The Pellucid Perspective - October 2020 - Pandemic creates an unusual, upward pricing dilemma
The Pellucid Perspective - October 2020 - 3
The Pellucid Perspective - October 2020 - 4
The Pellucid Perspective - October 2020 - 5
The Pellucid Perspective - October 2020 - How high is up? Based on current information, no one really knows
The Pellucid Perspective - October 2020 - 7
The Pellucid Perspective - October 2020 - 8
The Pellucid Perspective - October 2020 - 9
The Pellucid Perspective - October 2020 - Are we currently selling golf below cost (yes); why?
The Pellucid Perspective - October 2020 - 11
The Pellucid Perspective - October 2020 - September GPH slight down, current dynamics will absorb that
The Pellucid Perspective - October 2020 - 13
The Pellucid Perspective - October 2020 - Aug Utilization again up double-digits, weather not a factor in current surge!
The Pellucid Perspective - October 2020 - 15
The Pellucid Perspective - October 2020 - Pittsburgh #24 in new ranking, aided by better-than-average supply-demand balance
The Pellucid Perspective - October 2020 - 17
The Pellucid Perspective - October 2020 - 16 Activities; Transacts & For Sales comprise bulk of activity
The Pellucid Perspective - October 2020 - 19
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