Harry's Blog - Is It Time to Try Something Else? - November 2011
Posted in Harry's Blog - Archives
Since 2004, Fore! Reservations has listened to the request of our customers and provided integration software to third-party tee time resellers. Over that same period of time, “barter for resale” has become the preferred way of paying for many critical services in the golf industry. As you know, we have always been against the barter for resale method of payment for using any of the services provided by third-party tee time resellers, software vendors, webpage providers, marketing companies, etc. We have stressed the importance of branding your website and using a commission model if you decide to pay for any of these services through a tee time reselling agreement.
For those of you that have noticed, I’ve taken over a year off my “Soap Box” to see how the growth of barter and third-party tee time resellers has impacted the golf industry. So as the 2011 season comes to a close, it is time to check back with our customers on this topic...and it begs the question: How is barter working for you and the industry?
From my perspective, it seems the only thing that has occurred over the last seven years is that at a macro level, rounds have been moved around from course to course at much lower rates. Now, some courses individually may have benefited in the short term, but overall it looks like less rounds of golf have been played by the consumer, and the consumer’s price to play a round of golf is a lot cheaper than it was five years ago. This is just the opposite of our company’s, and I would imagine most operators’, goals for more rounds and more revenues for the golf course!
With the industry trending down in almost every metric (according to PGA Performance Trak, Golf Datatech, etc.), it seems to me that the only folks making a profit are those selling “bartered tee times”. They are making their money selling cheap “barter tee times”, and getting rich off of the hard work of golf course owners and operators. You discount to get more players and you barter to pay for services that are supposed to increase your rounds and revenue – so I ask you, are these two strategies working? If your course utilized barter this season, did you make money in 2011 or did the third-party reseller make money off you?
If anyone can share a success story from bartering tee times, I want to hear about it. I am very interested to see a positive example that supports a bartering/discounting business model, and would like to look at the financial data that illustrates how this method of selling tee times has built your business and shown dividends. In just this past year I’ve seen the rapid growth of barter, and things continued to decline in the golf industry. So if there aren’t a lot of individual success stories or growing regions out there, is it time to try something else?
If you believe third-party tee time resellers are here to stay, and as an owner or operator you feel compelled to use these services “because everyone else does”, you should ask yourself four questions:
1. Is barter increasing my rounds and revenue and impacting profitability?
2. Is barter increasing the total rounds and revenue in the industry?
3. Why do third-party resellers only accept barter instead of a commission model?
4. Why do third-party resellers insist on putting their booking engine on your website?
As I further evaluate if barter is the answer for courses (and the industry) to increase rounds and revenue, I ask myself these questions. Could it be that the golf course is actually driving their customers to their website to buy the barter tee times they are giving to the third-party tee time reseller? Is it possible the course would sell those tee times without the third-party tee time reseller on their website, but instead are directing customers to the third-party site and they take credit for the sale? What value does a third-party tee time reseller bring to a golf facility? Do golf courses research how many barter rounds are being sold outside of their local marketplace? If a third-party reseller is increasing your geographic footprint, it may have some value. Perhaps third-party resellers are merely bringing courses discounted rounds from area golfers that would have paid rack-rate otherwise?
Once again, is it time to try something else? Or is it time to demand something else?
The personal reason for this post, is I believe we have come to a crossroads in the timeline of Fore! Reservations. We need to decide whether to continue upon our business goals and objectives to help courses increase rounds and revenue, or should we “throw in the proverbial towel” and modify our views to meet our customers’ goals of driving business through barter.
I encourage any and all of you to voice your opinion by hitting the ‘Add new comment’ button to share your feedback. If you prefer, you may also e-mail me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call me directly at 630.235.6954. I’m looking forward to your comments and starting a discussion on this very important subject.
Harry Ipema
CEO, Fore! Reservations
