As we turn the page from one year to the next, I always enjoy reflecting and projecting. As we look at the landscape of the business of golf, it tips its hand to show us our direction for the coming year. Rounds are down slightly from 2022. Is this because of weather, or are we starting to normalize from the “COVID Boom”? Are we slipping back to the same old, same old way we did things? As an example… In 2020, we had to practice social distancing. As a result, public gatherings (especially indoor gatherings) went away. Along with that, outside events (like Monday outings and charity tournaments) went away. At the time, we asked How are we ever going to make any money if we don’t have our outside tournaments?? We did just fine without them. Now, in 2023, these are coming back. Is this a reason, or could it be a reason that rounds are dropping? Huh? You have to clear your first tee or your golf course to make room for that shotgun start – what if you didn’t have it? Could you get more play without it (if the first tee was open for member or guest play all day long)? The answer is maybe, and in many cases – probably. What you may not see is what the impact is on the player who would come, but can’t because of your outing, goes somewhere else and has a great time. Maybe they go back there. You may think you’re a private club so this doesn’t apply to you – not so fast. Your member that wants to bring three guests on a Monday but couldn’t… They played, but where did he go? Three potential dinners with drinks at the bar. Three potential members gone somewhere else. Do we want to learn from what worked in the pandemic, or go back to same old, same old. History gives us a chance to learn and grow. Maybe these events make sense for your facility. Take a closer look, learn and grow. Maybe there are other things we did that increased rounds during Covid. What else can we learn?

At this point, you should be thinking this isn’t fitting. You would be partially right. Guess what? Rounds played have an eerie similarity to equipment sold. I just looked at the Golf DataTech sales data for equipment sales from October. These numbers are all On course and Off Course combined:

• Golf balls
• Month YOY +1.4% in units, + 4.5% in dollars
• YTD +5.8% in units, +9.3% in dollars
• Woods
• Month YOY -8.4% in units, -10.1% in dollars
• YTD -5.3% in units, -2.0% in dollars
• Irons
• Month YOY -1.1% in units, +2.0% in dollars
• YTD -6.3% in units, -3.5% in dollars
• Wedges
• Month YOY -2.0% in units, -2.6% in dollars
• YTD-3.5% in units, -4.5% in dollars
• Putters
• Month YOY +1.3% in units, +2.5% in dollars
• YTD -1.0% in units, -0.1% in dollars

Holy math class. What does all this mean? Well, these stats are through OCTOBER, which is a big month. For a lot of the country, this marks the end of the season (or the start of the season for the extreme southern areas of the country). How do we look this year vs. last year? How do we look this October, vs. last October? Lots of hidden nuggets in here. Here is what I see, and what I think about:

• Golf ball sales are up – both monthly AND YTD. Yet, rounds are down slightly? Ball sales should mirror rounds played. If that doesn’t happen, something else must be influencing the marketplace. Does that mean we are getting more newer players into the game? If that’s the case, why are all the equipment sales numbers lower? I doubt this is the case. Why? Because the dollars would be lower (new players typically buy less expensive balls). So dollars and units are up… This tells me that players at private clubs are buying more balls (public players and non-passionate players look for lost balls and buy less expensive options).
• This supports many of the answers I get when I ask how are rounds at virtually every stop I make. Most Private clubs are up to flat. Most public are flat to down.
• If you’re a private club with rounds that are up, and a full membership… see above. Do you need that Monday outing? Do you need more member tee times? Do you need to change the way we’ve always done things to make it work for TODAYS landscape? Just asking the question.
• Most club sales are down in units, but are down more in dollars. This means that people are still buying, but they are spending less each time. Is there too much equipment in the marketplace? Is the market due for a correction? Is it time for manufacturers to offer fewer options (reducing lower price points)? Probably yes to all of this.
• Do we need to increase the value add on these sales to increase the number and dollars of each sale? Meaning, do we need to be a better fitter, or offer instruction with a fitting to get that member to pull the trigger? Are we turning tire kickers into buyers like we did with everyone in 2020-2022? What do we have to do to make that a reality? A tougher marketplace means retailers need to be better.

Are there other factors contributing? Is the economy causing people to do without? If you look at the economy, all the metrics and numbers look good. It looks like the economy should be in great shape, but it doesn’t feel like it. Why? Inflation. But, the inflation numbers are good, you say. They’re not, actually. If you have a year or two with runaway inflation – call it 8-9% for a 2 years straight (like we did). Prices are rising. Wages are rising too, but not at the 8% clip that inflation is, so… the dollar doesn’t go as far today as it did a couple years ago.

If inflation was 8% last October (2022), this means prices are 8% higher than they were the October before that (2021). If it’s 9% this October (2023) that means prices are 9% higher than they were when they were up 8% last October. The cause does not matter. The reality is that going out for a cheeseburger for a husband and wife is now $40+. 2 years ago it was $25. Groceries, gas, cars, golf clubs – EVERYTHING cost more. This leaves less disposable income for everyone. High wage earners feel it less. The non-passionate player or the player who can’t afford to be a member at a private club has a decision to make. “Do I want to play golf or…”

This means it’s harder to justify the new equipment purchase for many players. You have to be better. You have to take a closer look at HOW you sell equipment. Learn and grow. Unlike 2020, they are not just going to buy it with that stimulus check because you have it. You have to sell it. You have to give a compelling reason(s) to get them to buy it. You have to be a retailer. You have to be a better fitter. You may need to give more services to get that sale. Remember 2008. Same story. What did we learn? Looking at this data above gives you a clue that we may be trending towards that same pathway. Knowing this can get you out in front of it. What are you going to do about it? Adapt, learn and grow.