OFTEN INNOVATION COMES when an established company moves into a new field and looks to differentiate itself from the competition. Sometime these companies have tremendous success because they are not burdened by legacy thinking. This is exactly what happened in 2014 when The Union League of Philadelphia acquired Torresdale Frankford Country Club and its Donald Ross golf course in Philadelphia. The Union League, the #1 City Club in America, was looking to increase its membership offerings and enter the “golf world.” The club’s first thought was how to innovate and differentiate the golf product in a very “well-heeled” Philadelphia golf community. What happened next was next to remarkable, the League increased golf memberships from 140 legacy golf members to 450 golf members with a long waiting list.
One of the surprising results over the last three years was its innovative complimentary golf lesson program for all golf members—including their spouses and children. Statistical analysis has shown that for each dollar the League gives up in instruction revenue it receives an additional $7 from “a satisfied, better playing golfer.” A little more than 300 individuals have taken golf lessons this year in 20-, 30- or 60-minute intervals for a total of more than 1,500 lesson hours taught through July 31. Total golf club receipts have increased from $2.5 million to more than $6.5 million in three short years.
Union League Director of Golf Sean Palmer reported, “Complimentary lessons allow a friction-free approach to learning the game of golf. Individuals who hope to become golfers traditionally face many barriers, most importantly time and cost. The traditional United States model of private golf is counteractive to producing a client base that grows along with the most important metric to golf retention— the ability for a golfer to improve. The League has enjoyed a sold-out golf membership and increasing demand in the sport, proving opposite of national trends that face a decline in private club golfers.”
The Union League realized that to play golf at a top level in the United States, one must spend the money to join a club, invest in equipment, and invest (on average) $100/hour with a professional to simply learn a recreation that will take numerous lessons to even be ready to play. This model seems archaic and is exactly what the League’s approach was meant to remedy.
After three years, The Union League now has hard statistics that its innovative complimentary lessons have set a path to increased engagement with its members and increased receipts. Members taking part in the complimentary lessons have increased their spend in a number of areas, including bringing guests to play, additional golf shop sales, and additional spend in food and beverage. Sean Palmer added that he is even happier: “Eleven Union League golfers who never broke 100 shot 85 or better this year.” In addition, The Union League Golf Club at Torresdale is the leader in golf equipment sales for all Philadelphia private golf clubs this year.
To compensate the six golf teaching professionals on staff, the League charges $10 per round per golfer that gets split among the outside golf staff, the locker room attendants and the teaching professionals. The League does not allow tipping beyond the $10 service charge. This new service charge has freed up their golf professionals to do what they absolutely love, and that is to teach the game they love. No longer does the teaching professional need to spend time on “selling lessons,” instead they can be committed 100 percent of their time serving the golf member. The locker room attendants and outside golf service personnel also can completely concentrate on giving great service without “looking out” to see who tips better.
The Union League Golf Club has been so successful with their innovations that they are acquiring another 27-hole golf course for their members at the Jersey Shore. This transaction will close in October.
Jeff McFadden is general manager/COO of The Union League of Philadelphia. He also serves as the chairman of the NCA Foundation. He can be reached at [email protected].