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Au Revoir 2009!
by Desane Blaney, AGM Executive Director
We find ourselves not only bidding goodbye to the year, but also to the decade and what a decade it has been! Commencing with the trepidation over the possible adverse ramifications of Y2K, we've witnessed unbelievable highs and unfathomable lows. A recent article in the San Francisco Chronicle sums it up as a "decade of lost illusions." News outlets worldwide are in a flurry re-capping the big stories of the decade. Pardon me if I choose not to walk down memory lane, but I already lived it. Time to focus on the future.
It's been said that everyday is a gift. Let's remember to unwrap it and enjoy what life has to offer. Happy New Year! Wishing you good health and good business in 2010!
In this issue of the AGM e-Tailer:
- AGM Retail Conference - January 27, 2010
- Top Reasons to Attend the 2010 PGA Merchandise Show
- Recognizing AGM 20-Year Members
- Fine Tuning the Buy Plan - Members Prepare for the 2010 Season and Beyond
- You Must Prepare Before You Promote by Mark Killeen
- AGM Member Anniversaries
- 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
AGM Retail Conference - January 27, 2010
This January's AGM Retail Conference will feature two prominent speakers - Tom Shay of Profits Plus and James Dion of Dionco, Inc. Each speaker will give you a unique and timely perspective on navigating your retail operation in 2010.
Special thanks to our conference sponsors: Abacus, The Antigua Group, Barr Display, Callaway Golf Apparel, Club Satellite Network, Cutter & Buck, Greg Norman Collection, PGA Golf Exhibitions, Summit Brands (EP Pro, Fairway & Greene, Zero Restriction) and TaylorMade-Adidas.
The time to register is now! The fee for the all-day event is $95 for members and co-workers. PGA members will receive 8 Member Service Requirements for attending. To register and for more information, contact AGM Headquarters at 602-604-8250 or log on to the AGM website and click on the Events Calendar page to download the registration form.
Top Reasons to Attend the 2010 PGA Merchandise Show
Ken Morton, Jr.
You Don't Know What You Don't Know
•Whether you have never been to the PGA Merchandise Show or just missed the last few, there are new and exciting products and vendors in every category that your business can use.
•Meet with vendors you do not use to compare pricing, quality and programs with those you presently use.
This can either validate your present product mix or make you realize you need a change.
•Find that niche product for your shop or next event.
Future Trends (Don't Miss the Next Best Thing!)
•The vast array of vendors and products may just be the next best thing.
•Whether it's a new teaching aid or an exciting apparel piece, chances are you will find it at the convention.
Educational Seminars and Clinics (Like School...Only Much More Fun!)
•Clinics and discussions hosted by world renowned instructors.
•Visual Merchandising.
•Who are the right vendors for your shop?
•Are you priced right?
•Open to buy planning.
•Learn how to run a charity golf tournament.
Show Specials (You Snooze, You Lose!)
•Many vendors offer special show pricing on their products. If you plan to leave open-to-buy dollars for that, it could pay for part, if not all, of your trip cost.
Timely Feedback (It's Where the Action Is!)
•With all of the pressures placed on your time these days, this show gives you the opportunity to see multiple vendors in a short period of time.
•You can see their products displayed as they should be, compare prices, colors, fabrications and styles in three days, rather than trying to remember what a product looked like three weeks ago while reviewing line sheets. This is especially beneficial if you are located in a remote area and do not have the luxury of all the vendors coming to see you.
The Equipment Testing Center (A Bucket of Balls. A Cavalcade of Clubs!)
•The 200,000 square foot indoor practice facility gives you the opportunity to see all the products you could ever imagine and use them to make profits at your facility.
Networking (Everybody Will be There!) - Probably the most underrated benefit from the show.
•With thousands of attendees and exhibitors, you have the opportunity to share and learn ideas, concepts and strategies.
Meet the Players (Move With the Movers. Shake With the Shakers!)
•The key people in management of the vendors you deal with don't always have the time to come out and meet with you.
•The show is a great opportunity for you to meet your rep's boss and review your needs and possible strategies for growth in the future.
Increase Your Bottom Line (It Pays in the End!)
•All of the reasons listed above will help you increase your bottom line.
•Whether it's increasing revenue from teaching or merchandising and product ideas, you will get benefit from the convention.
Other Benefits:
•The Florida orange juice is fresher.
•A few days in the sunshine in Winter is a bonus.
•If Orlando is good enough for Mickey Mouse, it's gotta be good for the rest of us!
Recognizing AGM 20-Year Members
The AGM marks the close of its 20th year as "the educational voice in golf merchandising" and recognizes our still active charter members:
- Brett Moore, Jody Cook, Jackie Jacquemoud
- Desane Blaney, Kathleen Denton, Anita Zupan
- Debbie Chow, Patricia Crew, Mary Grodecki
- Margaret Trapp, Janetha Leonard, Robert Haley, Todd Madden
- The Antigua Group, Golf World/Golf Digest, Imperial Headwear
Fine Tuning the Buy Plan
Members Prepare for the 2010 Season & Beyond
In last month's issue of the AGM e-Tailer we provided statistics on the state of golf retail which we captured from members through a targeted survey. The majority of respondents are tightening their buy plans, bringing in a wider assortment of price points, looking for margin builders and close-out opportunities.
Listed below are a variety of actions members plan to take as they prepare for the 2010 season:
- We have basically thrown out all statistics from prior to 2008 and we are basing our buys on 2008 and 2009 sales. This is a dramatic change for us and takes us to a place we haven't been since 1998 when our golf shop was about a third of its current size. With a conservative buy we feel we will be able to complete the 2010 season with a comfortable inventory level and we will be able to move forward with new ideas to increase sales with the hope of getting back to similar numbers that we've had in the past.
- We lowered our Open-to-Buy based on trend and expected sales and are planning to increasing our turns with smaller deliveries more often to keep offering fresh product. We have partnered with another club for increased volume, discounts and buying power. Our goal is to have a constant flow of fresh merchandise to minimize markdowns and increase profitability.
- Buying conservatively and watching the price points, but not cheapening the assortment. The goal is to offer the best product with a good variety. Taking advantage of pre-book programs and incentives.
- Buying more collections with fewer pieces rather than fewer collections with more pieces.
- Analyzed every vendor through performance reports and cut out under achieving lines.
- Continuing to carry only top selling vendors based on the shop's previous history. Specializing in service and custom orders - pamper the members!
- Basics are the bread and butter of the business. Plan to buy a few collections and fancies that can mix and match with existing stock.
- Placed conservative orders throughout the year to lessen risk. However, the last three months have represented a 10% increase in sales, so we have ramped up a bit. This scenario tells me that I have to watch the stock to sales inventory very closely.
You Must Prepare Before You Promote
by Mark Killeen
We read and hear each day how and why today's economic situation is unlike any we have seen in decades. While that may be true, the fundamentals of retail success in uncertain times remain valid and ultimately will determine those who succeed and those who don't. Retailers need to buy smarter with a focus on higher initial margins, service their customer better than ever with a focus on value, and turn their inventory faster.
I am pleased to see in golf that most retailers are buying into the "it's all about value" concept. They are realizing that every retail operation must work harder in understanding how their customer defines value and then delivering on that understanding. Given that the value equation contains many factors to include quality, style, presentation, service, product knowledge, shopping convenience, delivery and certainly price among others, retailers have a lot to learn in terms of how to successfully compel their customer to buy.
The important question I do not hear being asked or answered is, "How are you going to pay for the investment to provide more value?" We need to remember that in most cases it costs the retailer to provide more value. Whether it is a price promotion, a cocktail party and trunk show, new fixtures to enhance presentations, etc, the effort is a cost to the business. So how do you pay for these investments? The best way is in the margin of the product you sell. If you prepare your buy with a focus on buying the right products at the highest possible margin, you will build in a budget to provide more value, in all of its forms. Please consider the following chart highlighting the effect price promotions (or any investment) have on margin:
| Retail Discount |
Initial Margin |
Margin
Margin $ Enhancement |
| 52% Margin | 62% Margin |
| 20% |
39.90% |
52.34% |
42.96% |
| 30% |
31.32% |
45.53% |
48.53% |
| 40% |
19.87% |
36.45% |
59.21% |
| 50% |
3.85% |
23.74% |
87.88% |
| 60% |
-20.19% |
4.68% |
423.08% |
It is stunning to see that if you increase your initial margin by 10 percentage points, you can realize much higher margin dollars while providing greater value. In fact,
if you are able to increase your initial margins to 62%, you can offer that product to your customer at a 20% reduction (or spend that 20% on the cocktail party!) and make more money than trying to sell that same product you bought at 52% initial margin at full price. Bottom line - you must buy your inventory with a keen focus on the right product at the highest possible margin to compete in today's retail climate.
Mark Killeen is the Managing Partner of Smith & Tweed / Pima Direct and an AGM Vendor Partner member.
AGM Member Anniversaries
Congratulations to the following AGM members (listed by join date) who celebrated their anniversaries during the second half of 2009:
- 15-Year Merchandiser Members
- Regina Vaughan
- 10-Year Merchandiser Members
- Linda Kull, Kathryn King, Debbie Phillips
- Ed Winiecki, Wendy Sampson, Robert Johnson, Shelly Dalton
- 10-Year Vendor Partner Members
- Fairway & Greene, Gift Box Corporation of America, Reed Exhibitions
- 5-Year Merchandiser Members
- Jackie Sorrenti, Kathi Holder, Erin Morton, Lauren Dimen
- Harriet Grimes, Michelle Wilks, Lana Taylor, Greg Hynes
- Kathy Burleson, Kerri Reynolds, Barbara Sanger, Jay Gazeley
- Julie Foley, Danielle Wence, Sara Whittaker, Stacy Collins, Angie Young
- 5-Year Vendor Partner Members
- Callaway Golf Apparel, Golftini, Pima Direct
- Pro Tag America, Tica Design, Trigelle
Many thanks for your membership, interest and support!
Golf Datatech Report
by Suzie Phillips
Total Units & Dollars
On & Off Course Shops Combined
Total Year to Date Through October 2009
2008 Compared to 2009
| Product |
Total Units |
Total Dollars |
Average Price |
| GOLF BALLS |
(000's Doz.) |
(000)'s Omitted |
Per Dozen |
| 2008 |
17513.06 |
$472,844 |
$27.00 |
| 2009 |
15584.43 |
$435,997 |
$27.98 |
| Percentage Change |
-11.0 |
-7.8% |
3.6% |
| WOODS |
(000's Units) |
(000)'s Omitted |
Per Club |
| 2008 |
4105.52 |
$692,514 |
$168.68 |
| 2009 |
3639.92 |
$593,594 |
$163.08 |
| Percentage Change |
-11.3% |
-14.3 |
-3.3% |
| IRONS |
(000's Units) |
(000)'s Omitted |
Per Club |
| 2008 |
6811.58 |
$488,612 |
$71.73 |
| 2009 |
5947.55 |
$409,381 |
$68.83 |
| Percentage Change |
-12.7% |
-16.2% |
-4.0% |
| PUTTERS |
(000's Units) |
(000)'s Omitted |
Per Putter |
| 2008 |
1187.58 |
$162,306 |
$136.67 |
| 2009 |
981.65 |
$134,448 |
$136.96 |
| Percentage Change |
-17.3% |
-17.2% |
0.2% |
| WEDGES |
(000's Units) |
(000)'s Omitted |
Per Wedge |
| 2008 |
960.33 |
$89,015 |
$92.69 |
| 2009 |
940.95 |
$87,246 |
$92.72 |
| Percentage Change |
-2.0% |
-2.0% |
0.0% |
| GOLF SHOES |
(000's Units) |
(000)'s Omitted |
Per Pair |
| 2008 |
2945.14 |
$248,213 |
$84.28 |
| 2009 |
2654.78 |
$221,373 |
$83.39 |
| Percentage Change |
-9.9% |
-10.8% |
-1.1% |
| GLOVES |
(000's Doz.) |
(000)'s Omitted |
Per Glove |
| 2008 |
1005.91 |
$154,143 |
$12.77 |
| 2009 |
913.92 |
$139,777 |
$12.75 |
| Percentage Change |
-9.1% |
-9.3% |
-0.2% |
| GOLF BAGS |
(000's Units) |
(000)'s Omitted |
Per Bag |
| 2008 |
1149.85 |
$137,618 |
$119.68 |
| 2009 |
969.53 |
$121,819 |
$125.65 |
| Percentage Change |
-15.7% |
-11.5% |
5.0% |
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 were down by -15.9% for the month of October 2009 as compared to October 2008 and down by -1.0% year-to-date. The findings represent 3,785 reporting courses.
Percentage Change in Rounds Played Volume
| 2009 vs. 2008 |
October
| Year-to-Date |
| U.S. |
-15.9% |
-1.0% |
| Public |
-16.0% |
-0.7% |
| Private |
-15.4% |
-2.1% |
| Pacific |
-4.1% |
-0.1% |
| Mountain |
-13.6% |
-1.6% |
| West North Central |
-38.3% |
1.7% |
| East North Central |
-27.1% |
-0.9% |
| South Central |
-20.6% |
-1.8% |
| South Atlantic |
-3.4% |
-2.5% |
| Mid-Atlantic |
-15.1% |
-1.1% |
| New England |
-13.9% |
-0.2% |
Key City Specifics
| 2009 vs. 2008 |
September
| Year-to-Date |
| Washington-Baltimore |
-6.5% |
-1.5% |
| Orlando |
1.9% |
-3.2% |
| Naples-Ft. Myers |
-1.4% |
-0.4% |
| Atlanta |
-13.1% |
-8.7% |
| Hilton Head |
6.3% |
0.5% |
| New York City |
-15.4% |
-3.7% |
| Chicago |
-33.4 |
-0.9 |
| Philadelphia |
-17.4% |
-5.1% |
| St. Louis |
-39.5% |
2.1% |
| Houston |
-15.2% |
1.5% |
| Los Angeles |
-6.4% |
-1.6% |
| San Diego |
2.8% |
0.9% |
| Phoenix |
3.8% |
-2.4% |
| Las Vegas |
0.7% |
1.7% |
| Seattle |
-14.7% |
-3.1% |
The National Rounds Played Report and Key City Specifics are 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.
Cormark Professional Golf Displays
Nancy Persinger, Director of Retail Products Group
Cormark Professional Golf Displays can design a golf merchandising area suited to the retailer's specific product offering and store layout. Retailer's can also mix and match our merchandising components to create their own custom golf display. Components include: wood, iron and combo spines, freestanding club holders, product platforms, slatwall displays and graphic holders.
For additional information, contact Nancy at 847-954-3111 or visit their website at www.progolfdisplays.com
Procraft Heritage Creations, Inc.
Rick Wild, Sales Manager
Procraft Heritage Creations is a leading company in the design and manufacturing of custom golf shop, and specialty clubhouse millwork. We partner with you to design and manufacture the finest golf shop tailored to fit within your budget. We offer the following programs: golf shop design, specialty millwork, temporary golf shops and fixtures. Our experience insures a highly functional shop that supports your merchandising and operating programs.
For additional information visit their website at www.heritage-creations.com or call Rick at 800-891-9277
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.
Matthew Barton, PGA
Owner, Barton Golf LLC at Prestwick Village - Holly, MI
Barbara Bogsch
Merchandiser, Glades Golf and Country Club - Naples, FL
Kylee Brown
Golf Shop Manager/Merchandiser, Somerset Hills Country Club - Bernardsville, NJ
Rick Hatfield
Head Golf Professional, Flint Hills National Golf Club - Andover, KS
Paulet Hill
Merchandise Coordinator, Estrella Mountain Country Club - Goodyear, AZ
Coralee Jorgensen
PGA Head Golf Professional, Westward Ho Country Club - Sioux Falls, SD
Elizabeth Knispel
Merchandiser, Cherry Creek Country Club - Denver, CO
Dong Hee Ko
Student, Arizona State University-PGA Professional Golf Management - Gilbert, AZ
Cheryl Krejcarek
Creative Director/Owner, Fresh Air Creative - St. Louis Park, MN
Grant Masson
PGA Assistant Golf Professional, The Alotian Club - Little Rock, AR
Todd Murata
General Manager, Kaneohe Klipper Golf Course - Kaneohe-Bay, HI
Nevin Phillips
PGA Director of Golf, Mahogany Run Golf Course - St. Thomas, VI
Neely Robertson
Student, Arizona State University-PGA Professional Golf Management - Gilbert, AZ
Member News!
- Kyle Butler - a recent graduate of the Mississippi State PGM Program, is currently working at Kauri Cliffs Golf Club, Matauri Bay, New Zealand.
- Ericka Smith - has been elected to the PGA of America as a Class A professional. She is employed by Orangeburg CC in Orangeburg, SC as an Assistant Golf Professional.
- Scott Stubbs - PGA Head Golf Professional at Vista Valley CC in Vista, CA ends his term as President of the Southern California Section of the PGA. He was recently honored at the SCPGA Annual Dinner held at the Journey at Pechanga Resort.
- Ed Winiecki - garnered Golf Professional of the Year honors from the Southern California PGA / Inland Empire Chapter. Ed is the PGA General Manager at Shandin Hills GC in San Bernardino, CA.
- Fond farewell - and best wishes to Debbie Carbia, Operations Manager for the PGA Merchandise Show. Debbie has worked with the show for the past 21 years - first with John Zurek and the PGA of America and more recently with Reed Exhibitions. The AGM thanks Debbie for coordinating our room set-up on conference day and for being our "go to person" with regard to logistics. We wish her a happy and healthy retirement! She will be soon missed and long remembered.
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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