Business & Tech
Bad Economy Hasn't Taken A Divot Off Ironwood
Despite the consensus of a downward trend in the economy, local golf course is holding its own.
The National Golf Foundation reported more than 700 golf courses have closed over the last 10 years in the United States.
And with the country still struggling to come out of the recession, more golf courses are having to grapple with the challenge of a decline in discretionary spending as people think twice before grabbing their clubs and heading out for a round.
One golf course in Sussex, however, seems to be defying the trends. According to Mike Lehmann, the director of golf at in Sussex, business has actually increased in recent years.
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Ironwood is now in its 16th season and Lehmann has been there since the first mulligan. He believes one of the secrets to Ironwood’s success is attending to people the way he would like to be treated.
“We treat every golfer with respect and care,” Lehmann said. “A large part of our business is word of mouth and we’re proud of that."
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Lehmann said he understands why many golf courses have resorted to lowering prices or offering special deals in these tough times, but he doesn’t believe that’s the right action for Ironwood.
“Once you lower your prices, you can’t really come back from that,” he said.
Ironwood offers three nine-hole courses: The Callow, The Meath and The Birr. The courses are located on Moraine Drive just south of Hwy VV, and all courses are open to the public.
The National Golf Foundation says the explosive growth of new golf courses in recent years has actually outpaced the number of people taking up the sport. As a result, the group says, there are fewer golfers per course nationwide.
"That’s a scary thought,” Lehmann said. “From a business standpoint, you are forced to make some changes.”
Another component to Ironwood’s success is the shift in emphasis and varying strategies when it comes to targeting customers. Years ago, Lehmann said, big companies would throw a lot of money to entertain their clients.
“It’s not like that anymore. The corporate money has stopped," he said.
Ironwood now looks for a large part of its golf business from charities and nonprofit events.
“As much as 90 percent of our business is from fundraising,” Lehmann said. “While we appreciate the walk-on golfer, we had to make some adjustments.”
Working with local high schools is something Lehmann said he plans to continue. “It’s good to be able to offer the high school kids a place to play, and they’re the future of our golf business," he said.
Recently a charity involved with Green Bay Packers wide receiver Donald Driver asked Lehmann to waive the fees on the golf course for the group's event.
“That’s just something I cannot do,” he said. “I can’t ask my rangers and grounds employees to work for free and I can’t afford to take a hit like that, even though I want to help.”
Lehmann said he would have liked to accommodate the charity, but the event ended up going to a different golf course.
Advertising is costly in any form, and Lehmann said he doesn’t believe advertising in any form is right for his business.
“People (golf course owners) will spend a lot of money for a half-page ad and they’re offering a free round of golf. They’re losing money,” he said.
Customer service will be more important in the future if a course expects to survive, Lehmann said.
“Customers must feel like they’re appreciated. If a player comes into your pro shop, they’d better get good service and great attention,” Lehmann said. “A bad experience anywhere on the course could lose that business and the people they tell.”
When compared to other courses, Lehmann estimates his course is in the mid-range when it comes the cost of a round of golf.
“We’re a bit higher in price, but we’re not going to jam people on the course," he explained. "If you pay more money than another course, you shouldn’t have to feel rushed. My philosophy is, how much is your time worth?”
