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Expanding inventory not only involves adding more bays or extending for hours, but also involves making the right strategic moves at the right time. (This is the first in a series of five information articles published by Inrange for the first time, and is now brought to GBN to benefit all of our readers)
For driving range, one’s saleable inventory is not a physical product. This is the number of bays and how long it is available (we call these “bay hours”). Each bay hour represents potential revenue, and every hour sold will convert it into actual revenue (let’s call it “volume” and we’ll solve this in the next in the series).
Therefore, one way to improve profitability is to scope operators Increase Bay Hour By increasing the number of bays per hour available for sale or extending their operating time.
Unlike retail businesses where unsold goods can be stored for later sale, unused bay time represents permanent lost revenue.
Operational Strategy
When demand always exceeds supply Increase the number of physical bays Available for sale is the most effective way to expand Bay Time inventory. Options include:
- Add more bays
● Horizontal expansion: Reuse underutilized areas adjacent to this range Introducing more baysusing outdoor screens or mobile technology can cover the bay and even be found in the bay.
● Vertical expansion: Add extra flooring to the existing range. As long as it is easy to access and ideally have good views, the upper bay can be very attractive to entertainment customers.
Adding new bays is the most expensive option to increase inventory. It is therefore crucial to consider whether these new bays are as attractive and valuable to customers as existing bays and whether there are any planning or regulatory restrictions.
Multiple Inrange partners use this strategy well, but the opportunity cost of planning permission and closing scope or part of scope or part of development often constitutes material limitations.
2. Take advantage of multi-purpose inventory
Maximizing inventory does not always mean adding new space, which can mean optimizing how you use existing bays:
● Coach Bay: Use coaches and install bays during non-coaching hours, for sale to regular customers. This is especially effective for entertainment golf purposes, as these clients are often playing after coaching time.
● Single and multiplayer usage: Release inventory to other customers by incentivizing players to share the bay, without additional space required for freeing up inventory per bay hour. This can be done Introduce competitive challenges, team-based formats or social game modes.
One of our companions ranges uses this strategy for amazing effects, and they open 8 coaching bays at night for use at night Added bay hours go through 960 hours per month (8 x 4 x 30).
3. Extend business hours
If body expansion is not feasible and you show demand on the edge of opening hours, available bay time is the next best option to be obvious. Considerations include:
● Weather proof: Invest in shelter and windproof so that it can be used later even in the off-season bay.
● Seasonal adjustment: Extend the evening time during high demand seasons.
● Lighting and facilities upgrades: Invest in night access and warm bay heating to make late games more attractive.
● Staffing efficiency: Structural transformation to allow extended operations without significantly increasing costs. For example, an entertainment-centric facility is opened in the morning, and limited staff encourages practice golfers.
Throughout the cold season, we have seen a lot of annual evidence that tends toward the aforementioned partner facilities.
4. New site extension
Once you show yourself, your players and investors that scope business is a great business and that you have the ability to show to make a profit, the next exciting opportunity is Expand your brand to a new website. This might be:
● Create a new scope: Perhaps the hardest, but we have many partners around the world investing in it.
● Repurpose existing golf real estate: Many courses are already mature and can reduce their hole count, which can well pave the way of commercially concentrated driving range.
● Purchase the existing scope: Our experience is that, like all businesses, great operators can essentially increase the profitability of the range they buy, which can return an excellent ROI (too much anyway) if you don’t pay.
Our partners in Sydney, Australia provide a compelling example of how strategic site acquisition can achieve long-term success. Recognize Growing demand for advanced golf and entertainment experiences In urban areas, they acquired land in major urban locations and established a compact high volume range, optimizing space and profitability.
Before expanding Gulf time inventory, tracking of key performance indicators (KPIs) to ensure investment is reasonable. Metrics such as bay utilization, peak versus off-peak occupancy, and hourly revenue will provide valuable insights into the maximum impact that additional bay time can make.
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Maximize scope revenue: Part 2 will be published within two weeks
