Item 16 - Agreement for River View Golf Course Managment Services

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Knowing Your Market - analysis of the demographic of our clientele and their needs, wants, and price points that are attractive. Loss Leaders — certain products may be priced at cost in the hope golfers will purchase other products at higher margins during their visit to the course, such as pricing a sleeve of golf balls at cost to attract golfers to a demo day where they might buy a set of clubs. Discount Pricing — if products become "stale" or inventory levels are not in alignment with the buying plan, price reductions are implemented in order to increase inventory turn rates. CourseCo utilizes several discount tactics including coupons, rebates, seasonal pricing, and other promotional markdowns. Increasing merchandise sales is challenging for all operators. Despite these challenges, CourseCo has experienced significant success at many of our facilities. We will bring an amalgamation of these approaches to the retail sales at River View Golf Course. • Home Clubs Merchandise Sales — leveraging CourseCo's relationship with merchandise vendors, we will host trunk shows and demo days where our Home Club members and regulars receive exclusive access to new clothing and equipment at excellent pricing. • Focused Tournament Sales Efforts — an increase in merchandise sales can be realized by adding tournament players and "upselling" merchandise packages to tournament groups. • Holiday Packaging — selling gift packs at Christmas, Mother's Day and Father's Day which include merchandise, rounds of golf and lessons can boost revenue in multiple categories. These packages would be available at the golf course pro shop and through the e-store.... We have been successful by developing customized merchandising plans and 4 . ■ approaches that match the demographic of our customer base at that specific facility. f I Two excellent examples of this are Mather Golf Course and Ancil Hoffman Golf Course in Sacramento, CA. These two courses are both owned by the County of Sacramento and have been managed by CourseCo since the 1990's. At Mather Golf Course, we have a customer base that is value oriented, and we have successfully used the approach of leveraging our relationships with our vendors to receive discounted product which allows us to provide price points that are value minded and extremely attractive to that facility's clientele. Mather has consistently achieved annual gross merchandise sales of more than $400,000 for the last decade. At Ancil Hoffman Golf Course, we have a customer base that is more brand oriented, so our merchandising plan there includes more of the top brand names in golf. Our annual merchandise sales at Ancil Hoffman have consistently exceeded $425,000 over the last decade as well. Both Ancil Hofman and Mather host approximately the same number of rounds played annually as River View Golf Course, and have a similar amount of retail space in the golf shops. According to the financial information provided, Pro Shop sales have been less than $150,000 the last two years. CourseCo would implement a customized merchandising plan for River View Golf Course, which would maximize the opportunities based on the customer demographics at the facility to increase sales. In all cases, we leverage our purchasing power through our preferred account status with many national vendors including Titleist, TaylorMade, Travis Mathew, and Callaway. COURSECO Page 27 I