14 Golf Operations in Clubs - CMAA

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496 Chapter 14 Exhibit 3 Pro Shop Inventory The percentage of golf professionals that own the shop inventory is decreasing. • 42.0% in 2001 • 38.5% in 2003 • 36.7% in 2005 a practice green and bunker near the practice range for members to practice their putt ing and sand game. The practice range is as important as the golf course and should never be just an aft erthought. There are some members who will use the practice range more than they will the golf course. The practice range, therefore, deserves the same att ention to detail that is given to the regular course. At a minimum, the practice range should have bag stands, divot sand, water coolers, club cleaning equipment, and guide ropes. The practice range staff should set up all practice equipment at the beginning of the day and store it at the end. Collecting and washing the practice range balls should be performed at the end of the day or during the day when there is heavy usage. A quantity of practice range balls should be bagged or bucketed ahead of time so that members do not have to wait for them. Practice range balls should be replaced oft en. Clubs may be able to have their practice range balls paid for by corporations who want the advertising exposure: the corporation buying the range balls might print its logo on them, for example. The practice range may have mats made of AstroTurf or some other synthetic material for members to tee off from during inclement weather. Permanent bag stands in the practice range area allow members to stand their bags up while practicing. Benches allow members to rest while waiting for partners or their turns on the range. Pro Shop The merchandise in the golf pro shop can be owned by the director of golf or the club; there are almost as many arrangements and contractual agreements as there are private clubs. In many clubs, the director of golf owns the merchandise and pays rent for the shop space. In some clubs, instead of rent, the director pays the club a percentage of the profi ts from the pro shop. In a small number of cases, the pro shop may be leased out to a third party in return for rent or a percentage of total sales or net income. This lease arrangement may be managed by the director of golf or the club. However, the numbers of golf professionals who own the shop inventory is changing. See Exhibit 3. Director of golfs who own their merchandise usually must secure credit to purchase their inventory, fi xtures, and displays. When the director owns the pro shop merchandise, the club should require the director to carry liability and property insurance.
Golf Operations in Clubs 497 Exhibit 4 Recommended Percentage of Golf Apparel in the Pro Shop Men Women Junior Shirts 43% Blouses 31% Shirts 65% Sweaters 25% Sweaters 25% Shorts 20% Slacks and shorts 20% Slacks, shorts, Sweaters 15% Socks 5% and skirts 20% Outerwear 5% Accessories 10% Miscellaneous 2% Outerwear 3% Socks or PEDS 2% The pro shop needs to be well-stocked with items that the members want. These typically include golf clubs and head covers, golf bags, golf balls, golf gloves, assorted apparel (men’s, women’s, and junior), golf shoes and hats, and miscellaneous golf-related items (videos, books, glassware and other souvenirs with a golfi ng theme, and so on). Exhibit 4 lists golf-apparel guidelines provided by the Professional Golfers’ Association of America (PGA). Golf-related services include repairing, regripping, reshaft ing, and refi nishing golf clubs. The golf items carried in a club’s pro shop should be of higher quality than the items sold in local sporting-goods stores and golf retail shops. Because the pro shop deals with a relatively unchanging clientele, displays should be changed regularly (as oft en as every two to four weeks). Some pro shops have a cost-plus program, whereby a member pays a fee to join the program and then pays only the pro shop’s cost for merchandise plus a set percentage. One example of a cost-plus program is referred to as the Mill River Plan; under this plan, a member can purchase merchandise at cost plus 10 percent aft er paying a once-a-year fee of $100. Among golf clubs, 23 percent operate under this plan. 3 Instead of receiving prizes or trophies in tournaments, winning golfers can receive a line of credit at the pro shop. This helps to move merchandise and increase sales. Other ways to increase sales include having a strong club-demo program (in which members can try out golf clubs before buying them) and making sure that the golf professionals use only club models that are carried in the pro shop while playing at the club. Custom-fi tt ing golf clubs is a special service that the pro shop can provide to members that will also help increase sales. A good source for information on merchandising items in golf pro shops is the AGM Merchandising Manual. This manual covers sales analysis, merchandisebuying programs, inventory-control procedures, and sales techniques. Bag Room Members typically have the option of storing their golf bags at the club. The bag room, where the golf bags are stored, is usually located close to both the pro shop and the area where members pick up their golf cars. The bags and racks need to be well-organized and numbers. Any staff member, including the GM, should easily
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14 Golf Operations in Clubs - CMAA

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