January 2022 Industry Report

I thought I would start the year off with an inspirational message: "I like the dreams of the future better than the history of the past." – Thomas Jefferson

Looking Back

Looking back over the past 12 months, the golf industry has a lot to be grateful for. Increased participation and revenue gains have been the norm. Two dark clouds persist – labor shortages and input inflation. One inflationary input that you might not be aware of, but likely use a lot of, is fertilizer. In your budgetary plans for next year, be aware that the typical fertilizer used on golf courses has increased 102% in price over the past twelve months.

Eye of the Beholder

While luxury is in the “eye of the beholder,” recent real estate news in Hawaii is eye-popping. The “average” luxury oceanfront home in the state sold for more than $6 million, up 12.4% from last year, with an average price per square foot of $1,796.

Gift Giving

Females make up 25% of all golfers, but 33% of gift-givers. Review your golf shop’s atmosphere. Is it geared for the non-golfing female to shop and linger?

Labor Shortages

Almost uniformly, all golf facilities are struggling to fill seasonal positions. Here are a couple of interesting tips from The New York Times when vetting a candidate:

Take Them On a Tour:

– Stay in the building and show the candidates around your club, and maybe introduce them to some colleagues.

– Are they asking questions about what everybody does and how things work?

– Are they curious?

– Do they treat everyone they meet with respect, and show interest in what they do?

Share a meal:

– Are they polite to everyone who is serving them?

– Do they look people in the eye (a sign of respect)?

– Are they irritated or flustered by problems?

– Can they keep a conversation going, with smart questions?

– Do they barrel through the restaurant, or let others go first?