Use Member Reward Programs to Benefit Your Members and Your Golf Shop
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Chad,
What about the snowbirds? Do you have a method of allowing them to participate? Possibly through e-mail? And one other question: Does the 25 percent apply to only soft goods? How do you handle maintaining margins on hard versus soft goods? Great idea, though. Seriously considering implementing this. Would love to hear more about the details. Thank You.
I allow all the members to participate by sending an invitation via postal and e-mail with the necessary information required to sign up for the program. The 25 percent does apply to all purchases and all products are priced at MSRP. Although you sacrifice about 5 percent on the Eagle Level from MAP pricing, the margin is maintained with the purchases made at 10 percent, 15 percent and at retail prices. In fact, my margins are greater than they would be using MAP pricing. Please let me know via e-mail if you have any other questions I could answer. Thanks!
This sounds very interesting to me. Now, for pricing you mark all your hard and soft goods at MSRP and then how do you keep track of what discount level each member receives? Do you get resistance from non-participants and do they try and beat you up for a discount without participating?
Chad:
I currently have a “Member Preferred Pricing” program that has been in place for 14 years, 10 percent off Hard Goods this gives members matching prices of the Golf Discount Stores and 20 percent off Soft Goods. How would you recommend implementing a program such as yours?
Thanks for the question Mark. I keep a comprehensive list of participants behind the counter but also have the ability in my POS to set up a discount for each individual member account which makes it very easy to administer.
I have not had any complaints regarding those that don’t participate. In the early stages I had a couple that waited until the end of the year to use up about $400 they had accumulated in couples events and were waiting for a sale. With this program I have no need for sales as everything is always “on sale” for participants. I told them it would not be fair to their fellow members if they were to receive a discount , not having participated in the program. I knew they had $400 that they had to spend and there was no need to discount. These purchases from the non-participants or outing players help to maintain the margin.
Mike,
I would have to know a little more about your current pricing strategy, but the key to my program is the upfront commitment of purchases of a minimum of either $100, $500 or $1,000.
If you are offering this discount without that commitment I feel that you would have to come up with a way to market the fact that you are now offering an additional 10 percent off on a hard-goods purchase. I would recommend at least a $500 level (MSRP on a driver) to earn this discount and the program is optional. You would need to change your pricing strategy for those not on the program to help out with the margin.
Another option would be to offer a $500 gift certificate purchase by the end of March for a discounted amount of $450… a savings of $50 (10 percent) and then offer your current pricing strategy. Always nice to have the money upfront (cash is king) and it may help to better forecast your sales. Let me know how you make out with it!