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Strategic Pricing Case Study

Optimized pricing maximizes golf revenue by routinely adjusting online rates based upon a variety of calculations including: historical utilization, historical pricing, historical weather, weather forecasts, competitor pricing, and demand.

Nominal pricing provides the baseline for all other rate structures and is the only true “controllable” of the variables listed below. It impacts the dynamic pricing model and serves as the denominator for breakeven analysis of annual passes and loyalty card programs.

As an example, below are the computed recommendations in August 2020 for a golf course in the Southeast. Historically, this course would have offered heavily discounted fees during the summer months, but increased demand due to COVID-19 mathematically justified an increase in all but one “day-part.”

As expected, trusting the data and increasing rates generated improved financial results. APR increased as a direct result of the rate increase, but the increase in APO provides the confirmation that the market reacted favorably to the price increase.

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About the Author
With 30 years’ experience in golf, Mike oversees Indigo Golf Partners growth plans and specific lease, acquisition, consulting and third-party management opportunities. He enjoys an invaluable talent of dissecting ways golf courses, country clubs and resorts can create significant new revenue and save expenses without compromise to quality. Previously, Mike managed the company’s vast southeast portfolio. A PGA member, he is a graduate of Mississippi State University, an avid cyclist and diehard college football fan.