Golf, as in other things in this world has pretty much forgotten basic economics. What comes into play here is the basic law of supply and demand. As golfers we would like to think that generally the law of supply and demand do not apply to golf, but it does. When the supply of a product goes up and the demand for that product goes down, what do you do to that product. That product has costs associated with it which must be covered, but the product is not being sold. What you do is to lower the cost to the consumer for that product to stimulate purchase or usage of the product or service. It's just that simple. Sorry I'm bothering you with this. I'm into this, I used to teach history.
I used to be in sales. If we had something that wasn't selling, what would we do. Yes, we made a lot of money when we sold a high ticket item with a steep price, but those sales were few and far between. Dollars were not changing hands and we still had the investment of the high priced item. A business is based on cash flow.
We would call this, "slow dime, fast nickel". What this means is you are making a lot of profit on the expensive item, but unless it sells it is a liability. Something that has less profit built into it makes you less money, but your money is being turned. You are generating fast revenue or profit. In other words, you don't make money unless it sells. When something wouldn't sell or was priced to high, we would lower the price or put it on what? ON SALE! Stay with me on this one, there will be a prize at the end.
How does this relate to golf? I will get into that tomorrow. Don't forget to check out my website at http://the-golf-course-travel-bag.com. Hit 'em long and straight, don't leave that birdie putt short.
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| The first tee at Bayonet. This is a great course in the Monterey area and right now are offering some great specials on green fees. |
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