Page 20 - GBC spring 2015

For example, if you are selling chocolate bars or gum at $2.29 patrons know that these items can be purchased around the corner at a convenience store for $1.29 or even less at a Dollar Store. When surveyed, consumers will purchase items at a premium at the golf course, but when prices are com- pletely out of reach we run the risk of insulting them or even worse, encouraging them to stop at a corner store to pick up one of these items before their round.
Another example of insult pricing is Sport drinks. When we surveyed several courses, many were retailing theses beverages at $3.50 or more, which can typically be purchased by patrons at large retail stores for $1 or less. This is over 300% markup and again, this is a risky pricing approach for your facility.
Bill Cairns of The Cairns Group Research stated: “Consumers are fickle and knowledgeable, when they are insulted by one price, they become very careful with other more lucrative prices.”
A good test is a visit to your local gas and convenience stores to check out their prices. If your pricing is in line with the bigger convenience stores, then you should be in the ballpark.
Step 3: the Right MeRchandiSing
Research shows that the right dis- plays, in the right area, with the right products will increase sales by 100%. The convenience business is an impulse business. This means that sales generally are not planned as patrons see an item that is on display and grab it to go!
Further research has shown that consumers buy convenience items in three seconds. We call it “Three Second TestTM”. Given this short timeframe, you must understand the relative importance of displays to ensure success. The general rule of thumb is the closer to eye level and the cash register the better the chance of moving the product.
Many companies have displays and items targeted specifically for the golf courses. Once again these displays and marketing materials are designed with the golfer in mind.
“Golfers are looking for con- venience and products that are reasonably priced and they can find quickly,” says Mike Rakic VP Country Manager Jack Link’s Canada. “Generally they are in a hurry to get to the 1st or 10th tee, our plan is to make is easy for them with ‘Better for them’ products that are ready to grab and go!”
The big question you need to ask yourself is, “What products do my patrons want?” And then ensure they are on display at the right price.
Step 4: the Right place
So, how do you get the product to your store? My suggestion is that we “stick to our knitting.” We are in the golf business! For example, let your Golfmax distributor man- age convenience items for you. They provide valuable top selling brand information, provide displays, marketing information and pricing strategies. This is very important to assist you to understand the business.
If you choose another distribu- tor or buying process, you need to ensure that the products they are selling are good quality and the right price. Service and freshness are of course critical to your success. As an example, most chocolate bars have a shelf life of maximum six months, items with nuts only three months...so be very careful here. All packaged goods products are date coded, so you can check that you are selling quality!
20 Golf Business Canada
“Research shows that the right displays, in the right area, with the right products will increase sales by 100%. The convenience business is an impulse business. “