|Step #3 - The Income - Increasing The Bottom Line
By Phil Immordino90% of golf tournaments have one thing on their mind, "Increasing the bottom line of their event." In this article we will discuss how to maximize your income.
Let us first look at a typical budget. This is a sample budget taken from surveys from hundreds of golf tournaments from around the country. These are averages only.
There are two ways to maximize your income, increase revenue and decrease expenses. Let's talk about both.
Sponsors - Sponsors are your number one profit source. You can generate the most amount of profit with sponsors. Here are the ways you generate bigger and more sponsors:
1. Put together a well-connected committee with valuable relationships. The better connected your committee the more sponsors you will have to pull from.
2. Create sponsor packages that offer companies a return on investment. Create business for them through your event and they will give you more money.
3. Find out the demographics of your golfers and your marketing campaign. This allows you to approach specific companies who want to reach those individuals.
Golfers - If you give golfers more they will pay you more. Increase the value that you offer golfers.
1. Give them a great golf course, unique and special.
2. Give them a great merchandise package with cool gifts.
3. Offer them an opportunity.
Auctions - You can raise big money with auctions if they are done right. Here are the key steps in doing auctions right.
1. Create a separate committee.
2. Take 6 months to get big items, donated or purchase at wholesale.
3. Create a website with these auction items.
4. Promote the auctions to your whole database in advance.
5. Have the grand finale at the golf tournament.
Games and Contests - If you focus on moneymaking games and contests you can increase your bottom line 25%. Make sure that you try things to increase that revenue.
1. Utilize money making games verses non-money making games.
2. Package all games into a "Super Ticket".
3. Accept credit cards.
4. Have volunteers selling that are good sales people.
5. Let golfers know where the money is going.
Donations - Don't leave them out. Sometimes we forget about the people who cannot play golf but still want to contribute to your organization. Give everyone an opportunity to give and give more.
1. Let everyone know the purpose of the money raised.
2. Have an area on your website that allows non golfers to give money.
3. Put something in your brochure giving them the opportunity.
4. Make a presentation at the awards ceremony about your organization.
5. Leave an envelope on the tables at awards ceremony with opportunity to give.
If you want to increase the net of your event you must also decrease the spending. I am not saying be cheap, I am saying lets see where we can cut and negotiate better rates. Here are some ideas.
Green Fees - Your objective is to get the best golf course at the best price. The golf course is very important so do not go with the cheapest in town. Here are some ways to get the best price.
1. Get to know the owner - Build a relationship.
2. Sell them on your cause - Maybe they know someone who has been helped by your group.
3. Be flexible with your calendar - Look at shoulder season, Monday through Thursday.
4. Bring them more business - Promote their golf course.
5. Bring more golfers negotiate the rate.
Food & Beverage - Golfers want good food, but there are many ways to save money.
1. Mix and match items on the menu.
2. Get a food or drink sponsor to bring in items.
3. Negotiate - do not accept menu prices.
Merchandise - Golfers play in events because of the gifts that they get. Make sure that you give them good stuff in the goodie bag.
1. Put the price of the item into a sponsor package. Put their logo on the item.
2. Order extra items and get a price break.
3. Have sponsors bring additional gifts.
4. Do a trade but not for player spots.
Gifts & Prizes - Your golfers need good gifts and prizes. Here is how you cut expenses on gifts and prizes.
1. Build the cost of the items and put them in sponsor packages. Put sponsor logo on them.
2. Only order enough for golfers.
Signs - Make your event look bigger with big signs and banners, but do not spend a lot to do that.
1. Get three bids from printers.
2. Have the sponsor bring their own.
3. Use last year's signs and banners.
Printing - You need a nice brochure. Work with local printers that do quality work, but remember these three key points.
1. Find a printer that plays golf and do a trade.
2. Get three bids.
3. Do not over print.
Postage - Reach more golfers with direct mail of a nice brochure, but do not over spend.
1. Clean up your mailing list.
2. Only mail to qualified golfers
3. Consider a post card mailing.
You will make more money and increase your bottom line if you take your budget serious. Watch every item and see how you can increase income and at the same time decrease expenses.
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