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A Business Within A Business: How To Maximize Pro Shop Profitability

by
Whitney Crouse

A pro shop is a business within a business. It is a major retail operation that would be a handful for any dedicated staff, let alone one already managing the myriad operations of a private club. Despite the complexity, a well-run shop should consistently deliver a gross profit of at least  30%.

When we partner with a new club, we often find these "golden rules" of retail are being overlooked.
We train staff to use these 10 essential tools to revitalize profitability and enhance the member experience:

  1. Forecast with Precision. Project "Open to Buy" dollars based on forecasted rounds and usage. It’s simple math that prevents overstocking.
  1. Maintain Freshness. Schedule monthly deliveries during the peak season to keep the floor looking new and compelling. This will also time accounts payable as close to sales as possible.
  1. Prioritize Inventory Turnover. Aim to turn merchandise at least three times per year to maximize liquidity and profit. Slow moving items are cash sitting on a hanger. If it doesn’t sell in 90 days, move it.
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  1. Master Visual Merchandising.  Newness sells, so create appealing displays and change them often.  Even re-merchandising the same items makes it feel fresh. Never leave apparel in plastic wrap or hide premium clubs under headcovers.
  1. Identify The Flow Zones. Map out "hot" and "cold" zones to strategically place impulse items where they’ll actually be seen.
  1. Clear A Path to Purchase. Arrange fixtures so customers are exposed to as much merchandise as possible on their way to and from the counter.
  1. Leverage Cross-Merchandising. Group hats, shirts, and shorts to promote multiple-item sales and a cohesive lifestyle look.
  1. Have A "First Impression" Table. Keep your entry table(s) fully stocked with your newest, most exciting arrivals. Add fun, logoed accessories to enhance the shopping experience.
  1. Rotate It Often.  Move existing merchandise to different areas frequently to give the shop a "new" feel for frequent customers or members.
  1. Make The Staff Brand Ambassadors. Ensure your team wears the apparel you sell. If members or customers see it on them, it sells itself. And teach them simple scripts to sell, not just ring up, such as “Have you tried this brand?” or “This is our most popular hat.”  
  1. Use Vendor Dating and Terms.  Take advantage of dating programs, extended terms, and preseason booking incentives to improve cash flow and reduce risk.
  1. Carry Fewer Brands. Customers and members don’t need 12 polo brands. All you need is 4-6 brands that are well presented, fit well, and are confidently presented.  Limit SKUs and buy deeper on proven sellers. Too many styles equals markdowns. A tight assortment with a strong turn beats a cluttered pro shop every time.

A profitable pro shop isn’t about selling more stuff—it’s about selling the right product, at the right margin, in the right way. If you want to take your retail game to the next level, let Bobby Jones Links leverage our buying power and expertise in pro shop retail.    

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