Saturday, November 5, 2011

Starting an Indoor Golf Center?

 Starting an Indoor Golf Center?
I wish I had all the answers.....



What are the secrets to building a successful indoor golf center?  Will people want to play indoors during the outdoor season?  How will we maximize our indoor season?  These were the key questions that haunted me as I attempted to build my business.  As the owner of an indoor golf center and a partner with numerous indoor golf facilities throughout New York and New England, I have experienced many of the trials and tribulations of the indoor golf center world.  After 8 years we are still doing our best to figure out the best business models. 

What are the secrets to building a successful indoor golf center?   The most important element to a thriving indoor golf center is the golf simulator technology that is pushing it.  When it comes to your core business do not cut corners you want your customer experience to be the best.  Stay away from used golf simulators and inferior technology.  As tempting as the price points may be, in this industry you will get what you pay for and I’ve seen centers founder immediately because of such maneuvers.  When someone walks into your facility for the first time and experiences your golf simulators the last thing you want to hear is” that was fun and I’m sure I’ll be back.”  If you have chosen the right technology you will more likely hear something along the lines of “that was amazing and I need to come back and work on my game or get my group together and start a league.”  The technology you select will make you or break you.  The beautiful thing about golf is that it is one of the most addicting sports and golfers love to talk!  With accurate and stable golf simulators your customers will be back and they will tell their friends, Guaranteed!  The best thing you can do is go out there and test all the major simulator companies.  If you’re not a good golfer, bring someone who is and get their feed back.  There are a lot of smoke and mirrors within this industry that put a haze over how accurate and real the simulators are.  Don’t be fooled.  When you go to play the different systems really play the ball and the environment within the game.  Can you play a push fade, a bump and run and how accurate is the spin of the ball and the short game.  Can you put yourself into trouble, i.e the woods and can you get yourself out of it.  Some systems are a merely 2 dimensions pictures not allowing you to change your aim and play a punch shot from the woods to the fairway.  In the end you want the experience to be as real as it can get.  Are there any simulators that are 100% accurate? Nope!  But you’re going to want to find the closest possible!

Will people want to play indoors during the outdoor season?  This is the toughest question to answer.  With my experiences I have found that it comes down to location and what other amenities are offered to go along with the golf simulators.   I have seen 2 business models successfully prove that indoor golf center are not just for winter play;
       Golf course location.  Having golf simulators at a golf course or a country club will not only increase your winter revenue but will also keep people playing golf when they can’t get outside.  Whether it’s evening play or during in climate weather people will tend to flock to the golf courses during the outdoor season and if the option to play indoors is available when they can’t play outdoors they will choose to do so.  The PGA TOUR Simulators from aboutGolf  are a great way to keep your game in tune when you can’t be outside.  From the accuracy of every shot to the detailed information that is delivered during each post shot analysis your customers will see the benefit in having them at the green grass facilities.  In the summer of 2010 we relocated our flag ship golf center from a strip mall shopping district to a local 9 hole golf course and in doing so we have seen a tremendous increase in the outdoor season simulator play due to our on course location.
      Sports Bar/Restaurant Atmosphere:  Whether it's an over the top sports bar with 25 56" flat screens or a cherry trimmed country club style atmosphere, having another source of revenue on top of the golf simulators will help increase the outdoor season numbers.  Over the past 8 years I have spoken to a lot of eager entrepreneurs looking to get involved with the indoor golf world and the most common piece of advice I have given is "figure out your summers/outdoor season, don't worry about the winter/indoor season." If you have an additional revenue stream such as a bar/restaurant that people will patronize for that reason alone then you have all your bases covers.  In the indoor season your customers will come in to play golf and also eat and have a cocktail or two. During the outdoor season it will be opposite, they will come in to eat and drink and while they are there maybe play nine holes or have a Par-3 or Clostest-To-The-Pin challenge. Either way, there are creative ways with a captive audience to keep them engaged and spending money.
        What are the best ways to maximize your indoor golf season?  Just like any amusement facility or restaurant there are proven formulas that you can use to ensure a positive experience for your customers while maximizing your time and income.  No matter where you are it's a short season so get what you can. Besides the standard indoor practices of golf leagues, clinics, lessons, private parties, corporate functions, memberships and required tee times there are some other practices to help get a little more juice out of the orange.  If you're up for the challenge the one thing I can say is never turn down a tee time no matter what time they want to play.  If your appointment book is filled during business hours and you have a group of 4 that want to come in and play at 5:00 am and you don't open til 8:00, take the reservation. Now you have the opportunity to add more reservations in that time slot with your other simulators. With the instant communication world of mass texting, FaceBook, and Twitter you can send out a blast message or posting that will tell your customers you have availability at 5:00 am on this specific day. You'll be surprised how fast it fills. Obviously an eager staff is needed for such practices but having some sort of incentive program in place will help get the key in the door.
        There is no true text book format to starting and operating an indoor golf center.  If there was, the indoor golf franchises would be available and successful. Hopefully some day soon someone figures it out and gets McGolf off the ground and on every coffee shop corner. For the most part it is a localized business model that needs to be created around what that specific area needs such as a sports bar, restaurant, golf performance/fitness or even renting bikes and selling ice cream in the summer. Regardless of how you operate during the outdoor season and if your area is saturated with golf courses and golfers and you are offering the best experience possible expect to have a very busy indoor season.
  



4 comments:

  1. Yardstick Golf (www.yardstickgolf.com) recently completed an extensive survey of golf center owners across the United States seeking to understand key business trends, strategies and drivers of profitability. They combined the survey data with information on things such as local golfers, weather and average daily traffic to gain a deeper understanding of what drives success for indoor golf centers.

    There are currently over 100 commercial indoor golf centers in the United States. Nearly all of these are located in the northern half of the US. For the 2012 Survey, Yardstick Golf surveyed indoor golf centers about factors driving simulator choices, visitor volumes by month, frequency of golfer visit, composition of revenue and future plans.

    Indoor golf centers participating in the survey were a combination of “pure” indoor golf centers and “combination” centers. “Pure” indoor golf centers generally offer simulator golf as the only golfing option. “Combination” centers offer both simulated and outdoor golf options. A vast majority of the survey participants own a single location under their own brand (I.e. very little franchise activity).

    The study provides key information such as which criteria were most important for center owners in choosing a golf simulator. It also provides analysis on expected gof center visits by month and customer visit frequency based on key drivers such as golfers in a 10 mile radius. We also provide a breakdown of what percent of revenue comes from simulator use, food, beverage, lessons, merchandise and events. Find out how center owners evaluate the effectiveness of various off season approaches to driving traffic.

    The 2013 Indoor Golf Center study is a valuable tool for center owners, potential investors and vendors to the Indoor Golf Center industry. In addition to the detailed analysis described above, the study provides straight forward metrics to benchmark your business:

    * Average hourly simulator price charged
    * Simulator utilization by month
    * Revenues by age of business and number of simulators
    * Ratio of the number of simulators per golfers within 10 mile radius

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  2. Greetings. My name is Justin Fitzpatrick and I specialize in launch monitor and simulation technology for Foresight Sports in San Diego. By now, I'm sure many of you have heard of the GC2. It is the most accurate and versatile launch monitor on the market.

    The incredible engineering behind this camera based system allows us to offer the GC2 at a price point that can almost instantly create revenue for indoor golf centers - be it for instruction or entertainment. We can supply simply the core components – GC2/HMT with software and laptop, or we can help you design a fully functional simulator.

    No need to hassle with lasers, radar based system, faulty sensors, etc. Very quickly the GC2 will be replacing many systems on the market due to its versatility and accuracy. Don't let the other guys beat you to the punch. Email with any questions and I'll be happy to send you additional information. Thank you.

    Justin Fitzpatrick
    Foresight Sports
    jfitzpatrick@foresightsports.com

    ReplyDelete
  3. Indoor games just depends on the Passion of the player and would he like such types of games as an indoor game or not and mostly the busy people would like it and want to play such types of games but professionals join the proper games for that.

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  4. Really inspirational to hear someone pursuing their dreams and becoming successful instead of following the traditional path. I have read your article about This topic. I think it's good and impressed to know your service. Thanks for share this Information. Home golf simulator

    ReplyDelete