The Climate in Orlando

The PGA Golf Show in Orlando was in many ways the same as it has been for years – same look, same hawkers and the same all-stars. There were a few new names, lines and innovations. Some of those I found interesting I have listed to the right of this entry and in some cases will discuss in future entries. The one underlying theme that was different and certainly touched everyone was the economic climate and its effect on the industry.

There have been company closings, eliminations of sales forces, cancellations, course closings, course foreclosures, and cutbacks of every fathomable sort. The cup appears dramatically ‘half-empty’. During times like these and assuming you still have a first tee and a Pro Shop door to unlock every morning the cup needs to remain ‘half-full’. The times, to quote Todd Martin of Fairway and Greene, are ‘Darwinian’ and only those working harder and willing to think outside the box will survive. New and creative in retail, as in politics, are what is brewing – anything that smells like yesterday’s coffee will not excite your customer. Consumer confidence is at an all time low, most shops were down 10-15% in the last quarter of last year and the experts are predicting the downturn to continue well into the beginning of the new season. How does this translate to managing your Pro Shop and what we control?

“Lower your inventory and sales projection” sounds like obvious advice but also smacks of the glass being half-empty.
Lowering your opening inventory level for the coming season, carefully planning the space, insuring that your buy includes all the needed categories to make your shop full service sounds better - add to that a conscious effort to be better merchandised, provide friendlier service with enhanced retail salesmanship and the glass starts to look half-full.

If reducing your inventory levels means using considerably less space, think about reconfiguring with a comfortable and compelling sitting area where members/regulars can shop catalogs and where shop staff can sit down with them to discuss their needs, available products and take special orders. Plan to keep a closer eye on this smaller inventory to perhaps replace it sooner than you would have in the past; having less goods that turn more often is a worthy goal in good times as well as bad in that it creates a perception of more selection. If your traffic is transient and you want to stay well-merchandised all season on the same ‘winners’ you can still lower par levels, count and fill more often and increase turns accordingly.

Considering all of the above, this is as good a time as any to consider partnering more closely with fewer vendors. How much of a golf ball selection do you really need to maintain to keep from losing sales? How many demo clubs do you need to have available without showing a loss? How many shirt lines do you need to provide to represent what is worthy and of value in the market? In this vendor narrowing process let the same priority that drives your other business decisions and hopefully has become a manifesto for your season prevail – SERVICE!

Deal only with companies and their representatives whose cup is half-full; those who want to help you educate and dress your staff, stop by and/or call as often as is needed to maintain the proper inventory level and have ideas along the lines of what we have been discussing.

Make getting through tough times a team effort for you, the staff and chosen vendors. Loyalty, an understanding of expectations among the group, sharing an upbeat presence and having an outgoing, optimistic attitude with the team as well as the customer is the job of the coach. Good things start at the top and roll downhill. We want the team member sweeping up to be talking half-full glasses.