Loss aversion is avoiding loss of any kind at all cost. Businesses will do (or must do) anything and everything possible to avoid suffering a loss especially when it comes to revenue (rounds). Golf course owners are losing rounds and revenue in 2016 only because they are still running their properties like it was 1990. Lost revenue is becoming the norm and some owners are accepting it as though they have no choice. The “so-called” experts are saying, “Be patient, business will get better” but yet the course loses golfers and rounds every year. When is it going to get better?
Golf courses are cash machines if they are run correctly. This loss of rounds and revenue is completely avoidable if we just get out of the way and suspend our egos. The times as well as the demographic have changed. Most courses’ membership is literally dying-off. There is a new consumer and owners must stop listening to people who have no skin in the game and start listening to their business. I constantly write about the numbers in business and always end with “numbers never lie”. If your numbers are not where they should be (must be) then you had better start listening to them.
Fear of loss is entrenched in our minds. Loss aversion is a basic business principle but yet owners are accepting it because the experts are brainwashing everyone to believe the existing business model can’t fail. Most of these hypnotists are only concerned about their own image which is completely tied to their “job”. They fuel their emotional needs for respect and importance through their position at the course or in the organization that employs them. These people are scared-to-death someone may wake-up and realize their position, antiquated ideas and worthiness are obsolete. People like this make the owner feel helpless and dependent because his/her primary focus is elsewhere on other businesses which afford the owner the opportunity to own a golf course.
Would you ever let a surgeon operate on you if he had never performed the procedure in the past? What about a surgeon who never attends additional classes or training to brush-up on the latest advancements in technology or medicine? Of course not! Then why are you relying on someone who has never grown a golf course in this economic climate, targeting this demographic, to grow your rounds and revenue?
Loss aversion is stopping the loss of rounds and revenue.
THANK YOU FOR PARTNERING WITH MMC® TODAY IN GROWING THE GAME, YOUR GOLF COURSE AND YOUR GOLF CAREER.