So, lot’s of clubs can’t (or won’t) shell out 6-figures for a full service management contract – for good reason in many cases…

But in a lot of markets, it’s becoming harder and harder for stand-alone clubs to compete in terms of economies of scale and buying power…

So what can the “little guys” do to contain costs?

buying-power

Well, one of the quickest wins we see is in procurement. Do you know if you’re negotiating the best terms for every purchase the club is making?…

The answer in almost all cases is no…here’s why

Left unchecked, the default setting for most department managers with buying power is to go with the path of least resistance – buy from the same companies and and the most comfortable sales reps…

The Solution is Simple

This article gets into a bit more detail (or this podcast), but the short version of the story is to push your department heads to get multiple (meaning 3-5) bids on every single significant purchase at your facility…

No exceptions. You gotta make vendors compete for your business…

Warning: It’s a pain in the butt, your department directors won’t like it (you’ll get some resistance), and some of your vendors reallywon’t like it…

But experience tells us that over-paying makes for really friendly vendor relationships. Execute on this practice and I promise you’ll save your club thousands…

The 4-bid strategy gives your club 4 huge advantages:

  1. You’re Defining a “Good Deal”– Without alternative offers, how do you know what a good deal is?
  2. Vendors Compete for Your Business– Not the other way around…simply letting them know you’re getting other offers will force them to sharpen their pencils
  3. Negotiation Leverage– You can play offers against one another and create the best terms of both worlds
  4. Fallback Position– If one offer falls through, then you’re not starting over from scratch…you can roll with plan B

Here’s an audio presentation of our Owner’s Forum where John Brown is speaking to some club owners on the subject…

Food for thought…

Casey Bourque
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Casey Bourque

Principal at KPI Golf Management
Casey is our marketing and business development guru. He's a published golf author and comes from a golf operations and marketing background. He owns a web development agency called Web Design Phoenix - pioneering programs like PGAGolfDay.com that has raised over $3 Million for PGA Sections and golf orgs nationwide. Fun Facts: Casey's Youtube channel has over 2 million minutes watched, he's also played on the PGA Tour, including the 2004 US Open at Shinnecock Hills.
Casey Bourque
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