Bandon Dunes

Recommended Strategies

• Price Increase on Green Fees

• Website Improvements

• Package Deals

History

• Started in Spring of 1999

• Founded by Mike Keiser

• BandonDunes.com

• Reputation – As of early 2004, Bandon Dunes was ranked

3rd in Golfweek of America’s Best Modern Courses.

Bandon Dune Experience

• Features– True Links Course

• Scotland Tradition - David Kidd

– The Golf Shop• eGolfShop

– Instructional Golf Lessons– Exclusive Services

Bandon Dune Experience

• The Lodge at Bandon Dunes– Fifteen single rooms– Four larger single rooms– Two four-bedroom suites– Golf course and ocean

views– Dinning Facilities

Mission

“The mission of the company is to offer a unique golfing experience

to all who enter its gates.”

Strategy: Green Fee Increase

• Increase revenue by charging more for green fees.

• Bandon Dunes is a unique course like Pebble Beach but is charging a relatively small amount for the experience.

Strategy: Green Fee IncreaseNew Price Number of First Rounds Revenue

Resort Guests ≈ 12,000 $250 * 12,000 = $3,000,000

Non-Resort Guests ≈ 18,000 $300 * 18,000 = $5,400,000

Old Price Number of First Rounds Revenue

Resort Guests ≈ 12,000 $160 * 12,000 = $1,920,000

Non-Resort Guests ≈ 18,000 $200 * 18,000 = $3,600,000

The two total revenues compared are $8,400,000 vs. $5,520,000. This means that Bandon Dunes will increase profits by $2,880,000

or by 52.2% just by raising their green fee price.

Website

• Current Website– Bland– Too much text– Not interactive

• New Website– Marketing tool– Multimedia– Interactive

Strategy: Website Improvements

• Multimedia Features:– More Pictures– Interactive Virtual Tours– Webcams– Real time weather and golf course condition

report – Instructional Videos

Strategy: Website Improvements

• Interactive Features:– Secured storage of contact and payment

information. – Online reservations.– Shop online without having to submit their

transaction information every time they buy something.

– Schedule appointments with experienced golfing instructors.

Strategy: Website Improvements

• Interactive Features:– Post and read feedbacks on the interactive

forum.– Buy and sell golfing equipment among

customers.– Live interactive chats between customers.– Share pictures from their experience at

Bandon Dunes.

Strategy: Website Improvements

• Implementation:– Outsource

• Cost: $20,000 • Time: Nine to Twelve Months

– Long term• Hire a full time webmaster• Hire a webmaster intern

Strategy: Golf Packages

• Golf Bandon Dunes– Three days Two nights

stay at the Lodge at Bandon Dunes

– Golf at Bandon Dunes & Pacific Dunes

– Or Golf at all three

Strategy: Golf Bandon Package  Golf The Dunes Package   non Package Prices 2004  

  Green Fees   Green Fees Savings

Bandon Dunes $160.00   $200.00 $40.00

Pacific Dunes $160.00   $200.00 $40.00

Total $320.00   $400.00  

         

Total Savings       $80.00

  The Bandon Experience Package   non Package Prices 2004  

  Green Fees   Green Fees Savings

Bandon Dunes $160.00   $200.00 $40.00

Pacific Dunes $160.00   $200.00 $40.00

Bandon Trails $160.00   $200.00 $40.00

Total Cost $480.00   $600.00  

         

Total Savings       $120.00

Strategy: Golf Bandon Package

• Implementation– Easy– Low Cost

• Benefits– Increase in sales– Improved Customer Satisfaction– Create a more “Memorable Experience”

Recap of Recommendations*Price Increase on Green Fees

*Website Improvements

*Package Deals

Recap of Costs

• Website Improvement: $20,000

• Greens Fees: Fixed Costs

• Package Deal: $1000 labor hours including in-house advertising

Any Questions?