Dynamic golf pricing is something that is becoming more and more popular in the golf industry nowadays. Although this term is relatively common practice in other sectors, it is still gaining its footing in the golf segment, which is why a lot of people are asking what it is about.
To put it simply, dynamic pricing involves pricing the service or product according to the current supply as well as demand factors. For instance, a single bottle of ice water can cost $5 if it is 100 degrees outdoors or only $1 if it is only 40 degrees. On the other hand, that very same bottle of water can still be worth less even when on a 100-degree day in case you have 1,000 in stock and you are expecting a rainstorm or a cold front.
Companies usually set off dynamic pricing through two specific steps:
- Setting up a base price for the service they provide as correctly as possible ahead of time (considering the cost of the goods as well as other important market conditions.
- Create rules that change the prices according to current market situations like weather, demand, or utilization. The objective is to create maximum revenue by making adjustments to the cost in order to meet the demand.
How To Use Dynamic Pricing?
Answer this question: How much do you have to spend for a flight to Texas? How about the hotel accommodation? You will not be able to give a single answer because of the price changes according to the day of the week as well as the real-time inventory. Dynamic pricing has been established as travel industry’s standard for many years and other industries have also started to use it.
For instance, several teams in the Major League Baseball are using Dynamic Pricing like the Chicago White Sox. In 2013, their website stated that:
– The White Sox would price tickets dynamically to all 81 home games during that same year.
– Fans were encouraged to buy tickets for high demand games in advance since prices were expected to shoot up as the season progressed.
– As the season continued, the ticket prices were adjusted up or down according to the market demand.
– The capacity of the White Sox to make adjustments to the prices throughout the season gave fans varying pricing options.
So what did all these mean to White Sox fans during the pre-season? Ticket prices were higher when White Sox played against Cubs, during Friday nights as well as weekend days. Meanwhile, ticket prices were lower when it was hard to draw a crowd like weekdays. So what about mid-season? What does this mean to the fans of White Sox fans? The team had a losing record 14-25 in the middle of May so that meant empty seats, which resulted in low ticket prices. The cost started to go up as they started to win their games. Meanwhile, the prices on weekdays in the upper deck remained reasonable while prices were expected to surge if they made it to the playoffs.
When Are Clients OK With Dynamic Pricing?
There are instances like when the product is about to expire and we don’t seem to care. These cases include things like a hotel room, a tee time, or a flight. We also don’t seem to mind if the increase in prices is based on the demand instead of the size of the wallet of the customer. Let’s say the hotel is full or the flight is full or the golf course is full. All these are equivalent to higher prices.
So Is The Golf Industry Behind The Trend?
Consumer technology, as well as acceptance, are crucial factors in figuring out whether an industry or business must adopt dynamic pricing. Keep in mind that the shift to a brand new pricing method cannot be made overnight. Just be sure to set the prices as correctly as maybe ahead of time while considering the most important market conditions.
There are various good examples of changing prices according to predetermined guidelines. The prices differentiate for the following:
– How many holes a golfer can play
– Early bird according to demand
– Weekdays as well as weekend based on demand
– Costs brakes by days ahead
– Is the player a resident, public, member, and resident to incent signups.
– Immediate discounts for prepaid tee times in order to reward prepayment.
Introducing Dynamic Pricing To Your Revenue Technique
There are several factors that you need to take into account when figuring out the correct pricing technique. With several sales channels, it could be a full-time task. On the other hand, technological advancements in the golf industry have begun making dynamic pricing way easier, lowering the time and effort needed for its implementation, and making current contributions to the bottom line. The various advancements in technology are letting golf courses Myrtle Beach to move away from the conventional rack rate pricing and eventually be good for the course as well as the golfer. How much do you have to pay to play a good round of golf on a good day at the course of your choosing? Although there might no longer be a set rack price, the answer to many golfers is definitely priceless.
If you are looking for great golf courses in Myrtle Beach, call MyGolf.
1504 Highway 17 S, Suite A
North Myrtle Beach, SC 29582