What is Value?

Find the Green : A Guide to Golf Management

Happy Tuesday! Today, we are going to dive into the art of adding Value for your customers. Value is how our customers judge the use of their resources. If you can provide a positive value to their experience, there is a good chance that they will come back. The basic equation for value is: Value= Benefits-Costs Most operators feel the only way to get more value for the customer is to drop the costs and then the value will go up. This is absolutely true. However, it is the most expensive way to add value for the customer. By utilizing VALUE ADD benefits, instead of subtracting from costs, it gives you the ability to increase the customers perceived benefit at an actual cost that is much lower. For example, if you add a $10 basket of range balls benefit for the customer, the actually cost is about $1 for picking and maintenance(but you still charge the full amount for golf). DISCOUNTING deducts fees to lower costs. It does increase value but it lowers your top line revenue in the process. (A $10 discount takes ALL $10 away from your revenue) This affects TOTAL REVENUE for the facility and can be the difference between a shoestring budget and a healthy one. Thanks for listening! You are helping this podcast grow exponentially! So please tell a friend, tell two friends, TELL 8 FRIENDS and we can make the golf industry better for everyone! If you want to contact us, contact me at [e-mail] or you can reach out to me on Instagram and Twitter @FindtheGreen or on Facebook at Find The Green. The Find the Green series is going to contain different aspects of the business: Operations, Marketing, Strategy, Branding, and Social Media Footprints. Check www.rockholdandassociates.com for upcoming Find The Green blogs, books, and conversation that can help raise the waterline of the industry. Jump in the boat and enjoy the ride!