Is Integrity Golf Management Trying
to Bankrupt Their Competitors in Orlando?
In studying the prices of daily fee golf in the Orlando area over the last few weeks, I’m astonished to see that it’s fallen to new lows. It’s quite possible to play golf on decent golf courses, on courses that just a few years ago were $50 or $60 a round, or in some cases as high as $100, now for between $16 and $29. Several of these courses are run by management companies. Integrity Golf Management, for one, seems to favor very low pricing.
Recently, I’ve been doing a lot of serious research on strategy to try to help my clients grow their businesses in very difficult conditions. Therefore, it naturally occurred to me that perhaps Integrity Golf Management’s strategy is to price golf so low that they drive their competition out of business?
While not a very neighborly strategy, it’s a perfectly legitimate business strategy that many companies use in many different industries. Since there is no possible way they can maintain their facilities in fine condition or run the operation long term on the prices they are charging I have concluded, that this must be the case. And if they have deep enough pockets or VENTURE capital behind them, there’s every chance they can pull it off and drive five or six of their competitors out of business. Then, no doubt they will double or triple their rates to try and gain back all the money they spent to capture market share.
If That’s Not Their Strategy?
Then they would simply appear to be in deep shit, plunging into the abyss like the rest of the golf market in Orlando, where prices have been driven far below reasonable operating costs. Helped along by all the good people at GolfNow, Ezlinks, Golf18Network, and other third-party vendors, hired by managers too scared or too lazy to find a better solution!
Discounting your rounds below cost and trying to make it up in volume is not a winning strategy unless it’s the one I described above. You must look for a better solution at once, or death is the only inevitable outcome! Discounting only works for the lowest cost operator with the biggest pockets and no one else!
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All The Best,