The Pellucid Perspective - August 2023 - 2
PRICING
OBSERVATIONS
Managing Pricing Power:
A Nice Problem to Have
By Jim Koppenhaver
R
aise your hand if you would have predicted in August of
2019 that we'd be discussing the topic of pricing power
and how to optimize (not necessarily maximize) it in the
August 2023 issue of The Perspective. All of those with your
hands up, I call bull****. For all the rest of you, if it's any consolation
my hand wouldn't have been raised because back then
pricing was not a real fun topic and the primary objective, when
we did talk about it as an industry and individual operators, was
" defying discounting " . What a difference 4 years and a pandemic
doth make.
So we now find ourselves in the fortunate, but still somewhat
perplexing, situation of having to figure out the balance between
covering costs, expanding margin and following current market
forces (i.e. higher prices are being more readily tolerated by consumers
in general). In the July issue of Outside the Ropes, I
analyzed Greens Fees pricing in golf and its trajectory since '05
2 The Pellucid PersPecTive
as well as comparing it to inflation. The basic storyline was:
* Average Greens Fees prices have increased annually
every year during that span
* Golf Revenue (GRev) has fluctuated up & down over
that period as some years' price increases have been
overtaken by rounds declines but, over time, GRev has
wandered steadily higher
* Compared to inflation over that period, golf went
through successive phases of lagging inflation, leading
inflation, matching inflation and, in the recent cycle
(last 5 yrs), again lagging inflation
If you want to see the trend graphs and the complete analysis,
I'll send you a complimentary copy of the full issue if you email
me (rest assured it will also come with an invitation to subscribe
August 2023
PHOTO BY ACCOLADE CREATIVE ON UNSPLASH
The Pellucid Perspective - August 2023
Table of Contents for the Digital Edition of The Pellucid Perspective - August 2023
TOC
Managing Pricing Power: A Nice Problem to Have
A Tale of 4 Courses: Microcosm of golf ’s evolution from rags to prosperity
Only 6 Activities; 5 transactions dominate
July GPH declines by 4%, Year-to-Date still up 4%
June Utilization up 3 pts, strengthens Year-to-Date to +1 pt
Seattle at #9 stays in the Top 10, good fundamentals but room for Velocity/Utilization improvement
The Pellucid Perspective - August 2023 - TOC
The Pellucid Perspective - August 2023 - Managing Pricing Power: A Nice Problem to Have
The Pellucid Perspective - August 2023 - 3
The Pellucid Perspective - August 2023 - 4
The Pellucid Perspective - August 2023 - 5
The Pellucid Perspective - August 2023 - 6
The Pellucid Perspective - August 2023 - A Tale of 4 Courses: Microcosm of golf ’s evolution from rags to prosperity
The Pellucid Perspective - August 2023 - 8
The Pellucid Perspective - August 2023 - 9
The Pellucid Perspective - August 2023 - Only 6 Activities; 5 transactions dominate
The Pellucid Perspective - August 2023 - 11
The Pellucid Perspective - August 2023 - July GPH declines by 4%, Year-to-Date still up 4%
The Pellucid Perspective - August 2023 - 13
The Pellucid Perspective - August 2023 - June Utilization up 3 pts, strengthens Year-to-Date to +1 pt
The Pellucid Perspective - August 2023 - 15
The Pellucid Perspective - August 2023 - Seattle at #9 stays in the Top 10, good fundamentals but room for Velocity/Utilization improvement
The Pellucid Perspective - August 2023 - 17
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