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The Business of Business
by Desane Blaney, AGM Executive Director
Warren Buffett once said "the view from the rear view mirror is clearer than the windshield." No surprise here. How we use the view to plan for the future, however, is crucial to the success of the business.
As I speak with members regarding the state of business, I'm hearing a willingness on their part to look at offerings for Spring 2010 and to place conservative orders as they attempt to project what their business will be in the coming season. Astute buyers know they must land "fresh product," but they don't want to have excess inventory and the vendors don't want cancellations - so planning conservatively seems to be the order of the day.
An interesting aside is the shift in the traditional pyramid of price points offered in shops. The AGM has long-recommended shops have three price points - good, better, best. Buyers are seemingly expanding the base of the pyramid with opening price points, the middle is now being split into moderate and moderate "better," and the top tier now represents a sliver, if anything, and only if those offerings are sustainable and profitable. According to Michael Adams, Retail Analyst for RMSA, "it is not that customers will not buy better merchandise, but they will not pay more than it is worth - they are insisting on the price/value/quality relationship."
Buyers are being extraordinarily judicious about presenting a merchandise mix that appeals to their customers' current spending. Smart move - offer what sells and what makes you the most margin. It's not about trading down; it's really all about return on investment.
In this issue of the AGM e-Tailer:
- PGA Fall Expo to Showcase Collections and Education by Barbara McAuliffe
- AGM Seminars and Golf Shop Analysis at the PGA Fall Expo
- Choose Your Retail Strategy
- Honor Our Armed Forces with a Patriot Golf Day Event
- AGM Members' Creative Ideas to Generate Interest & Sales
- Is Your Employee Worth the Cost of a Cup of Coffee? by Ginny McMinn
- Golf Datatech Report by Suzie Phillips
- National Rounds Played Report & Key City Specifics
- New Members
- Member News
 Click here to view this month's AGM Photo Gallery
PGA Fall Expo to Showcase Collections and Education
by Barbara McAuliffe, Event Director, PGA Golf Exhibitions
Join your industry colleagues at the PGA Fall Expo on August 31 through September 2 at the Mandalay Bay Hotel in Las Vegas. The event is taking on a whole new look for 2009 with PGA Professionals and golf retailers at the center of the action.
More than 200 golf vendors are offering a fresh mix of merchandise and golf-related products designed to drive revenue with many offering show specials to further enhance your margins.
The popular PGA Fall Expo Education Conference of some 20 professional development seminars is being offered for the first time at "NO COST" for participants. The seminars are led by the industry's foremost experts from The PGA of America, the Association of Golf Merchandisers and successful golf business leaders. PGA members will receive valuable MSR credits for each hour attended.
We're launching the first PGA Fall Expo Career Fair at this year's event and it will include PGA Professional employment workshops, recruitment services by leading industry employers, on-site interviewing for a variety of industry positions, job boards and a resume posting service.
Attendees are invited to join industry peers on Tuesday, September 1st from 5:30 to 7:30 p.m. for a casual private networking reception hosted by Elations at the Border Grill, a Las Vegas destination restaurant with two floors of patio dining located just steps away from the show floor. Beer, wine and sangria will be served along with light hors d'oeuvres. Please be sure to wear your PGA Show Badge to gain admittance.
The PGA Fall Expo coincides with Las Vegas Fashion Week which features MAGIC, MODA, Off-Price, Mrkt, Project, Accessories, and more! To register for the PGA Fall Expo and obtain more information go to: www.pgafallexpo.com
AGM Seminars & Golf Shop Analysis at the PGA Fall Expo
Do you need help getting the answers to your retail questions or to help you complete that planning project you started, but just can't get finished? Stop by the AGM Booth 429 at the upcoming PGA Fall Expo and have your retail questions answered by Becky Wilkins of Retail Management Associates and Michael Adams of RMSA. Come prepared with your information for an up-to-date analysis.
The following AGM educational programs will be presented on the show floor as part of the new conference offering for attendees:
Tuesday - Paul Erickson of RMSA: "Who Wants to be a Retail Millionaire?" and "Five Things You Need to Start Doing Right NOW!" Participants will be eligible for a drawing to win a KINDLE READER courtesy of RMSA at the conclusion of the second seminar.
Wednesday - Becky Wilkins: "So Little Time, So Much to Manage" and "New Strategies to Get New Results in New Times."
See you in Las Vegas!
Choose Your Retail Strategy
Mark Killeen, Managing Director of Pima Direct, is a very passionate guy when it comes to retailing. Whether you choose to purchase his product or others, his mantra is "MARGIN." He recently sent a "Strategy = Results" communique that is worth sharing:
Strategy One: The Ostrich Strategy
• Be fearful of current conditions = Stale shop, aged presentations, concerned employees.
• Buy no new product waiting for the storm to blow over = No Open-to-Buy due to lack of sales.
• Do not take markdowns to "preserve profitability" = Customers and members will choose to buy elsewhere.
• Put off vendor appointments claiming no Open-to-Buy = Cost of Goods continues to increase as product becomes aged.
Strategy Two: The Keep Your Job or Get Promoted Strategy
• Choose to compete = Increased sales and profitability.
• Buy fresh product in regular deliveries from your vendors that provide the best quality product at the highest possible margins = Excited and appreciative customers/members.
• Take timely markdowns to move product that is not selling = Frees up valuable Open-to-Buy dollars.
• Improve product presentations = Keeps the shop fresh and inviting.
• Create product marketing ideas and promotions = Keeps the customers and members coming in.
Honor Our Soldiers by Hosting a Patriot Golf Day Event
"We encourage our members to stand up and salute those members of the U.S. Armed Forces who have been disabled or made the ultimate sacrifice while serving their nation," stated AGM President Ken Morton, Jr. "You can champion the event with creative promotions to raise funds for this important initiative."
According to the Patriot Day website, "Patriot Golf Day is the flagship fundraiser for the Folds of Honor Foundation, a 501(c)(3) non-profit organization that provides post-secondary educational scholarships for the children and spouses of military men and women disabled or killed while serving our great nation. On Labor Day weekend, golfers across the country are asked to add an extra dollar to their greens fees to fund Folds of Honor scholarships. The Patriot Golf Day campaign is jointly supported by The PGA of America and the United States Golf Association."
"The inaugural Patriot Golf Day in 2007 was started by Major Dan Rooney, Founder of the Folds of Honor Foundation, F-16 Pilot, PGA Professional, and USGA member. On Labor Day 2007 Rooney asked golfers to add $1 to their greens fees. His request resulted in donations of more than $1.1 million from more than 3,200 golf facilities. 2008 marked the second year of Patriot Golf Day and contributions were received from more than 3,800 golf facilities nationwide and resulted in donations of approximately $2 million. In the last two years, more than 550 postsecondary educational scholarships have been given through the Folds of Honor Foundation."
"Patriot Golf Day 2009 will again be held during the Labor Day weekend, September 4-7. If you are interested in joining our mission to empower the lives of deserving military families with educational opportunities, then please become a participating facility in 2009!"
PGA Professionals who host an event and submit funds to the Folds of Honor Foundation will receive TWO MSR Credits.
AGM Members' Creative Ideas to Generate Interest & Sales
The following AGM Front Nine Award winners share their ideas for promotions, innovative use of props, retail initiatives, and customer service:
Creative Sales Promotion: Nathan Stith and Tim Chancellor - Doral Golf Resort & Spa- Miami, FL. When you think of a mascot in Florida, you might think of the Marlins, Gators or Buccaneers. Not so for the team at the Doral Golf Resort & Spa. They developed a mascot for the facility called The Blue Monster. Named after their famed 18-hole PGA Tour golf track, the team developed logos, golf head covers, plush toys and a 7-foot life size mascot- all for retail sales. The plush toy and head cover alone generated over $35,000 in sales in 2008. They've even developed a Blue Monster concept store-in-store, selling a plethora of Blue Monster retail items.
Innovative Use of Fixtures Or Props: Cary Cozby - Wichita Country Club- Wichita, KS. Wichita Country Club was recently renovated and one of their most unique finds was a mahogany antique billiard table replete with green felt inlay and fringe around the pockets. The table is used as the shop centerpiece to showcase new arrivals of fine men's apparel including cashmere sweaters, woven shirts, boxers, ties, khaki trousers and golf books. The table sits on an Oriental carpet surrounded by an antique steamer trunk, a rare Anheuser-Busch beer crate and other vintage items. The fixture generates the highest dollar-per-square foot amount anywhere in the golf shop.
Retail Initiative: Ken Mattis and Dana Bresnahan - Highlands Country Club in Highlands, NC. During Highlands Country Club's men's member guest and 80th anniversary tournament this past year the membership was encouraged to dress appropriately for a round of golf played in the late 1920's. The shop offered many different styles and colors of knickers, socks, caps and other period items. It was a success inasmuch as it grossed over $15,000 in sales on the classic attire. Talk about looking forward by looking back!
Customer Service - Mark Thush and Lauren Everett - Desert Mountain Golf Club- Scottsdale, AZ. In an effort to distribute information to the membership within the golf shops and golf facility and to reduce the amount of paper used everyday, Desert Mountain came up with an ingenious method of bettering the computer printed sign idea. They invested in digital picture frames and put them around the golf shop and golf facility, making a bigger impact on the customer as well a more "green" way to provide information. Using PowerPoint, they created a slideshow for each of the digital frames that included not only sale pricing, but upcoming events, weather reports, promotions and tournament results.
Is Your Employee Worth the Cost of a Cup of Coffee?
by Ginny McMinn
Over the past few months, I have visited numerous workplaces where the number of employees were reduced and workloads were spread among remaining employees. True, times are tough for some businesses, but let's not forget that times are tough for employees, too!
Many of the remaining employees are handling "their own work" (as they describe it) as well as the work of employees who have been laid off. These employees often feel overwhelmed and overworked. They may also be nervous about being the next to get let go or are saddened that friends and co-workers are no longer around. Or, they may have family members who are out of work adding to financial pressures and problems.
It is important to address the issues of tight times and the remaining workload. Employees may not currently have many options for employment within your organization. However, counting on this instead of treating employees as they should be treated can destroy motivation, reduce teamwork, increase stress and make it more likely employees will leave when an opportunity is available elsewhere.
What is the solution? COMMUNICATION, LEADERSHIP and RECOGNITION.
Communicate with employees about the business, its challenges and your near-term goals. Encourage employees to become involved in solutions and savings. Engage employees in discussions of ways to help the business during these tough times.
It is also important to provide leadership. You may be concerned about sales, opportunities for growth, receivables and collections. Yet your employees also look to you for leadership. Spend time with your employees. Take a look at workloads and priorities; then get realistic about what must be done and what can be put off. Overworked and overwhelmed are not conducive to productivity, effective customer service or employee retention.
Remember that recognition is key to employee motivation and retention - in good times and in bad. Employees surveyed about what keeps them motivated have only one #1 answer: Recognition for a job well done. Recognition doesn't have to be expensive; but it does require a systematic method for making sure it happens.
At McMinn HR™ we have lots of ideas for recognition on a shoestring. Give us a call if you need some ideas.
Ginny McMinn is the Founder and President of McMinn HR™ of Gilbert, AZ. She brings over 30 years experience in the HR field and has presented at AGM educational events. For more information about McMinn HR, contact Ginny at ginny@mcminnhr.com
Golf Datatech Report
by Suzie Phillips
Total Units & Dollars
On & Off Course Shops Combined
Total Year to Date Through June 2009
2008 Compared to 2009
| Product |
Total Units |
Total Dollars |
Average Price |
| GOLF BALLS |
(000's Doz.) |
(000)'s Omitted |
Per Dozen |
| 2008 |
9462.57 |
$249,638 |
$26.38 |
| 2009 |
8249.04 |
$229,289 |
$27.80 |
| Percentage Change |
-12.8 |
-8.2% |
5.4% |
| WOODS |
(000's Units) |
(000)'s Omitted |
Per Club |
| 2008 |
2522.31 |
$439,663 |
$174.31 |
| 2009 |
2245.62 |
$378,245 |
$168.44 |
| Percentage Change |
-11.0% |
-14.0 |
-3.4% |
| IRONS |
(000's Units) |
(000)'s Omitted |
Per Club |
| 2008 |
4369.55 |
$317,570 |
$72.68 |
| 2009 |
3758.33 |
$260,842 |
$69.40 |
| Percentage Change |
-14.0% |
-17.9% |
-4.5% |
| PUTTERS |
(000's Units) |
(000)'s Omitted |
Per Putter |
| 2008 |
695.99 |
$95,318 |
$136.95 |
| 2009 |
569.68 |
$78,746 |
$138.23 |
| Percentage Change |
-18.1% |
-17.4% |
0.9% |
| WEDGES |
(000's Units) |
(000)'s Omitted |
Per Wedge |
| 2008 |
538.55 |
$50,124 |
$93.07 |
| 2009 |
517.44 |
$48,476 |
$93.68 |
| Percentage Change |
-3.9% |
-3.3% |
0.7% |
| GOLF SHOES |
(000's Units) |
(000)'s Omitted |
Per Pair |
| 2008 |
1780.29 |
$152,387 |
$85.60 |
| 2009 |
1583.00 |
$134,647 |
$85.06 |
| Percentage Change |
-11.1% |
-11.6% |
-0.6% |
| GLOVES |
(000's Doz.) |
(000)'s Omitted |
Per Glove |
| 2008 |
540.12 |
$81,734 |
$12.61 |
| 2009 |
483.67 |
$72,893 |
$12.56 |
| Percentage Change |
-10.5% |
-10.8% |
-0.4% |
| GOLF BAGS |
(000's Units) |
(000)'s Omitted |
Per Bag |
| 2008 |
708.91 |
$85,068 |
$120.00 |
| 2009 |
589.45 |
$73,740 |
$125.10 |
| Percentage Change |
-16.9% |
-13.3% |
4.3% |
For more detailed reports covering retail sales for golf products including apparel contact Golf Datatech, sphillips@golfdatatech.com or call 888-944-4116.
National Rounds Played Report & Key City Specifics
Rounds played volume in the U.S. was down -3.3% in June 2009 breaking a previously set three month increase in play.
Percentage Change in Rounds Played Volume
| 2009 vs. 2008 |
June
| Year-to-Date |
| U.S. |
-3.3.% |
0.2% |
| Public |
-2.7% |
0.6% |
| Private |
-5.4% |
-1.0% |
| Pacific |
1.7% |
1.2% |
| Mountain |
-2.9% |
-0.5% |
| West North Central |
0.7% |
9.6% |
| East North Central |
-3.4% |
3.1% |
| South Central |
-2.8% |
-0.1% |
| South Atlantic |
-4.5% |
-4.9% |
| Mid-Atlantic |
-8.5% |
0.1% |
| New England |
-8.1% |
-0.9% |
Key City Specifics
| 2009 vs. 2008 |
June
| Year-to-Date |
| Washington-Baltimore |
-5.4% |
-4.4% |
| Orlando |
-0.7% |
-6.7% |
| Naples-Ft. Myers |
-4.7% |
-1.8% |
| Atlanta |
-10.7% |
-9.1% |
| Myrtle Beach |
-5.0% |
-7.5% |
| New York City |
-14.4% |
-4.2% |
| Chicago |
-11.1% |
0.3% |
| Nashville |
-11.6% |
-2.9% |
| St. Louis |
-0.8% |
16.3% |
| Dallas/Ft. Worth |
-3.8% |
4.3% |
| Los Angeles |
-1.9% |
-0.9% |
| San Diego |
1.2% |
3.0% |
| Phoenix |
1.0% |
-2.1% |
| Las Vegas |
1.5% |
-0.1% |
| Seattle |
4.7% |
0.3% |
The National Rounds Played Report and Key City Specifics is a joint effort of Golf Datatech, National Golf Foundation, PGA of America and the National Golf Course Owners Association.
New AGM Vendor Partner Members
The following golf companies joined the AGM
during this past month. Please support these new members as
well as the many other AGM Vendor Partners. Click
here
or go to the Vendor Partners page to view all of the fine
offers and services available for AGM members.
Awareness Awards
David Spence, President
Awareness Awards offers glass and crystal awards and gifts. A portion of the product sales is donated to the National Breast Cancer Foundation.
For additional information, visit their website at www.awarenessawards.com or call David at 214-321-1148.
New AGM Merchandiser Members
Please welcome the following merchandisers
who joined the professional ranks of the AGM this past month.
For contact information on all of the AGM members, please
visit the Members Only pages at www.agmgolf.org.
Wendell Dix
PGA Golf Professional, Eagle Oaks Golf Club - Farmingdale, NJ
Deanna Freeman
PGA Assistant Golf Professional/Buyer, Callawassie Island Club - Okatie, SC
Lucie Lechler
Merchandiser, Horseshoe Bay Resort - Horseshoe Bay, TX
Ric Moore, PGA
Owner, ProShop Golf - Bakersfield, CA
Donna Potts
Merchandise Coordinator, Thunderbird Country Club - Rancho Mirage, CA
Marie Siani
Pro Shop Manager/Buyer, Trump National Golf Club - Briarcliff Manor, NY
Nadine Stan-Boyens
Owner, Pro Shop Consultants, Inc. - Wilmington, DE
Greg Sutherland
CPGA Director of Golf, Truro Golf Club - Truro, NS, Canada
Jeff Willenberg, PGA
General Manager Resort Operations, Palmas Del Mar Country Club - Humacao, Puerto Rico
Member News!
- Jennifer Heinz - a 2008 AGM scholarship recipient was newly elected as a member of the PGA of America. Jennifer is the Assistant Golf Professional and Merchandiser at the TPC of the Twin Cities in Blaine, MN.
- Harriet Kerr - Buyer and Merchandise Manager at Walden Golf Club on Lake Conroe in Texas has decided to retire. She writes, "I have enjoyed my association with the AGM and I appreciate all the hard work by everyone involved in the day to day operation of such an important part of our industry. It has been an invaluable experience and one that I will treasure always. I have made many friends in my 18 years as a member that I would have never known otherwise - I feel truly blessed."
- Ed Winiecki - General Manager and PGA professional at Shandin Hills GC in San Bernardino, CA was recently certified by the PGA in both Retail and in Instruction. He had been certified earlier this year in Executive Management.
The AGM eTailer is published monthly for the members of the Association of Golf Merchandisers. To submit
news, articles and information for an upcoming edition of the eTailer - please contact us at (602) 604-8250 or click
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