Our November newsletter, which focused on the challenges private golf clubs face in the current economy, caught the attention of McRedmond Morelli, the founder of Boxgroove.  Boxgroove cleverly matches golfers with a bit of disposable income and desire to play private courses with private clubs that need to generate extra revenue to keep the lawnmowers gassed up and their staffs paid.  We have written here about Boxgroove a few times (use the term “Boxgroove” in the search box in the right column).

        This month’s provocative topic is just a hint of the issues we address in our free monthly newsletter, Home On The Course.  To subscribe, just click on the box at the top of this column, follow the simple and quick instructions, and you will start receiving the publication automatically in December. (I’ll send you the November issue myself.)  By the way, we protect your privacy and never share your name and email address with anyone. – Larry

 

Here are McRedmond’s comments:

        I enjoyed this month's newsletter and found the razor analogy most appropriate.  You came close to really calling out our industry; just cutting price on initiation won't solve the problem.  Yes, Aron Rolston [hero of the  new movie "127 Hours"] survived, but most would die of the catastrophic wound that was self-inflicted.  Clubs need to reinvent their programming and show members why they need to be there.  Club membership is more than golf, more than Sunday Brunch.  I can learn to play chess at night, learn Chinese cooking from the club's chef or have access to great in-depth and interesting content on the club's web site.  But with today's economic reality, the more value a club can show members, the greater likelihood that they will join (and stay).  We started Boxgroove to give both the private club member a benefit to play at other facilities and the opportunity for his/her club to remain healthy and vibrant with a little extra income from green fees.  Private club members don't like the thought of shouldering the burden of assessments and dues increases, and Boxgroove can help prevent this.

         The newspaper that serves the golf saturated area of Hilton Head Island and Bluffton, SC, just completed a two-part series on how local government officials and marketing experts are fighting over how much money they need to promote the golf and beach oriented area.  According to the Island Packet, about $5 million more per year
This is an ideal time for anyone looking for a great golf vacation at a low price in South Carolina’s Low Country.

would put area spending for marketing the region on a par with similar regions across the nation.  Local marketers point to a bill the state of South Carolina legislature passed last year to permit the local government in Horry County (Myrtle Beach) to charge an extra 1% sales tax to fuel its tourism marketing budget.  This came after a Coastal Carolina University study showed that Myrtle Beach tourism was on the precipice of disaster as the middle-class tourists it relied on were not likely to return to the Grand Strand without encouragement.  The extended sales tax put an extra $10 million into the Myrtle Beach chamber of commerce’s marketing budget and, officials there believe, staunched the bleeding in the tourist economy.

        I am on Hilton Head for a couple of days, and I note that golf green fees are down to as low as $20 per round at courses that charged nearly $100 before the economy went sour.  It is hard to imagine such discounting will sustain some clubs much longer.  The same is true of local restaurants and hotels, where you can eat and sleep well and cheaply, relatively speaking.  This is an ideal time for anyone looking for a great golf vacation at a low price in South Carolina’s Low Country.

        I have also noticed that the golf course, resort, hotel and restaurant lobbies I’ve wandered into in Hilton Head feature racks of booklets and brochures with coupons and ads for local merchants.  Talk about penny wise and pound foolish; these merchants are spending their precious dollars to fight each other for a negligible piece of the pie.  Yet logic seems to dictate that survival depends on enlarging the pie.  That is, the merchants should pool their money and advertise in markets like Charlotte, Washington, D.C., Philadelphia, New York, and Boston to attract increasing numbers of golfers and beachgoers.  They should work together to drive more tourists to the area, and then fight over them later.  Instead, the first instinct of the business community, led by the chamber of commerce, is to ask government for help.  Ironic, isn’t it?