How a major Chicago-area club put its shop “on-line”
Published in Golf Shop Operations, January 1986
Bob Hickman, head professional at Medinah (Ill.) C.C., admits he is not much different from many other pros who run their own shops. “innovation,” Hickman insists warily, “makes me uneasy.”
But in some respects, Hickman is different from his fellow pros. The 1980 “PGA Merchandiser of the Year” award that he has hidden on the side wall of his shop attests to that. You see, as much as innovation makes him uncomfortable, Hickman acknowledges its importance. He even stress it, “You need to surround yourself with new ideas in this business.”
This past summer, Hickman and his wife Susan (“She’s the glue that holds the shop together,” Hickman says) installed a computer system in their shop. It was a decision they first considered five years ago, but one they kept resisting.
And now?
Hickman leans back in his office chair, contemplating the question, perhaps reflecting on his 40-plus years of golf experience.
“The single largest mistake I’ve made in the business,” he says, peering at the computer screen in front of him, “was waiting as long as I did to put the computer in. It has done nothing but create time.”
When the Hickmans finally decided last July that it was time to purchase a computer, they consulted with several colleagues in the business with systems, trying to find an established computer company with golf expertise. They settled on Handicomp, a company that produces, markets and provides support for systems designed strictly for golf and country clubs.
Based in Grand Rapids, Mich., Handicomp has 18 years of experience in golf. It is best known for its computer handicapping service, used by over 800 clubs across the country. Handicomp’s software, as of last October, is used in over 80 shops. Linda Healey and her husband Bill were the Handicomp representatives who assisted the Hickmans with the installation and support of their new system.
PUTTING AN INVENTORY ON LINE WASN’T EASY
Once the Hickmans had chosen Handicomp, the first step was to run a complete inventory of the Medinah shop. Every item had to be counted and listed, a task more complicated than it sounds. Clothing was recorded by color and size, equipment by manufacturer and specific model, balls by brand and compression.
At Medinah, where the shop covers 3,000 square feet and houses approximately $300,000 worth of merchandise, the item-by-item inventory took the Hickmans, the Healeys, and 20 full-time employees an entire week to complete.
The inventory lists were then sent to Handicomp, where each item was numbered according to product class and vendor.
The Healeys believe Handicomp’s assistance during the programming of the inventory is one of the most unique and helpful services.
One of Handicomp’s goals each time it automates a shop is to have its clients fully operational within 30 days. Therefore, Linda says, Handicomp doesn’t mind numbering, programming and keypunching the inventory. “It really helps a lot in terms of how fast we can get a person up and running,” she says.
Once the keypunching was completed, an entire printout was made of Medinah’s inventory so that it could be checked against any changes that had taken place since the initial count. The Hickmans and their staff kept records of goods received and sold during that week, and the additions and deletions were entered in the program.
TRAINING STAFF
At that point, the inventory was finished. Everything in stock in the Medinah shop was now in the program, waiting for the Hickmans, literally at the touch of a button.
The next step was to familiarize the Hickmans and their staff with the computer system. The Healeys say the size of the system a pro purchases depends on a number of factors, including the size of club membership, the shop’s inventory and amount of sales.
Medinah serves nearly 1,000 golfing members and their guests (approximately 47,000 rounds during the 1985 season) on its three courses. Bob estimates the shop grossed between $575,000 and $600,000 in 1985.
The Hickmans decided on a multi-user system with two IBM terminals (Handicomp systems are compatible with IBM, DEC, Compaq, Tandy, Texas Instruments, and most IBM compatible hardware). They also chose three Epson printers – two high-speed, dot matrix printers for inventory and tournament lists, and one slower, letter-quality printer for letters and other correspondence.
One of the terminals, along with one of the dot-matrix printers, was set up in front of the shop, adjacent to the club’s bag room. The other terminal was placed in Bob’s office at the back of the shop, next to his desk in the spot where the Hickman’s typewriter used to be. The other two printers are located in a storeroom near the office.
For software, they initially chose three Handicomp programs. The most significant was “Golf Shop Retail,” which includes inventory along with membership profiles, sales processing/analysis, billing, word processing and order entry. In addition, the Hickmans purchased programs designed to compute and process their accounts payable and payroll.
Bob estimates he spent a total of $13,000 on his new system -- $6,000 for hardware, $7,000 for software and supplies. Handicomp says, however, that most professionals can purchase a system for less than $10,000.
Handicomp spent three days at Medinah teaching the Hickmans about their computer. The first day was spent learning the basics, such as how to log on and off. The second day was more in-depth and informative, and concentrated on “Golf Shop Retail.” The Hickmans learned about the new inventory system, how to process sales and how to bill members. Finally, on the third day, both couples worked with the fundamentals of accounts payable, such as invoicing, purchasing records and bill paying.
The Hickmans caught on so quickly they were able to sit down after the Healeys were gone and figure out how to process their entire monthly payroll for a staff of 35. What used to be a three-day process spent adding up time cards and poring over tax tables now takes about two hours, and the computer even prints the payroll checks.
The Hickmans learned the system so well that in August bob purchased Handicomp’s “Handicaps and Tournaments” program. In October, they bought a more advanced word processing package, having out-grown the original program.
“The greatest thing Handicomp provided is support,” Susan says emphatically. “We never felt alone. Anytime we had a problem, we just called Bill or Linda and asked for help.” (Handicomp even pays for the first 30 phone calls as part of its set-up package.)
MEDINAH’S COMPUTER: USER FRIENDLY
Medinah’s staff cannot deny they are hooked on their computer. “Before we turn the lights on in the morning,” Susan says, “we flip on the computer.” And they never tire of discussing the advantages of having a computer, or pointing out ways it has made their lives easier.
For instance, the computer has eliminated the dreaded quarterly inventory. Since the inventory is stored in the computer, all they have to do is press a button, and in an instant, they have a printout of all the merchandise in the shop.
Susan uses those printouts when she goes on sales trips. When meeting with a sales rep, she just pulls out the record of that manufacturer to find out what items are popular, what items are unpopular, and what items need to be reordered. She has decided it is safer to trust buying habits to the computer.
In the shop, those printouts and vendor accounts can be used to signal the Hickmans when they are low on a particular item and need to reorder, or when they need to pay a certain bill. The computer even figures in their discounts from the manufacturer and prints the check.
Medinah’s 300-member caddie program has been recorded on the computer, as have the 1,100 sets of clubs in the bag storage room. When members come out to play, they are asked their name or member-number and what course they wish to play. The information is quickly fed into the computer which sends a printout to the employees in the bag room telling them the member’s name, bin number, course number and whether they’re walking or riding.
During heavy tournament play in the summer, Medinah sometimes hosts as many as 700-800 golfers a day. “The time the computer saves in organizing tournaments is often crucial,” Bob says.
The tournament package Bob purchased in August is, in his words, “the most fun.” This program groups foursomes, sets up tee times, the score cards, mark the holes where strokes fall, and list special tournament instructions on the back. With this tournament package, you can even devise and program your own tournaments.
“I came up with one tournament this year,” Bob smiles, “a best three-out-of-four balls at 75 percent of handicap, match play against the field. We had 13 foursomes sign up. It would have taken us a week to score that tournament,” he says, exaggerating only slightly. “The computer did it in just three minutes. Amazing.”
Are there any disadvantages to the system? Hardly, according to the Hickmans. Except for a faulty extension cord that had them confused for about a week, there have been no mechanical “bugs.”
The Hickmans admit the computer has forced them to be more accountable than they ever had to be before. “You put a little bit of misinformation in the computer and you’ve got giant problems,” Susan laughs. “There’s no more guessing. You have to be accurate.”
Bob believes the cost shouldn’t scare any prospective buyers away. “With a $300,000 inventory and the computer system to aid you,” he says, “can you see how easy it would be to make up $13,000?”
They also don’t buy the theory that smaller operations should go without a computer system.
“Okay, what about the pro with a 9-hole facility and an inventory that peaks out at $12,000?” Susan counters. “Listen, they need the computer more than we do. Their buying mistakes hurt them more. We can recover from a buying mistake, but the small operator can’t always recover. The computer helps you avoid those mistakes.”
As for Bob Hickman, his advice is simple. “Learn from my mistakes,” he says. “Get into it as soon as you can.”
Editor’s note: Geoff Russell is a freelance writer based in Chicago.
While the Century Club leverages the benefits of IDS Fortune Enterprise, it is the integrated Membership module which has brought them the most visible benefits. With this application the accounts for the entire club have been centralized, pulling up and viewing reports in now so much easier, point of sale now has extensive transparency and visibility and most importantly, the software has been quickly and easily customized to the many varied needs of the club. 
Initially the staff was hesitant to adopt the Membership module. However, now they thrive on the simple application. Information about members can be accessed with just a few clicks of the mouse while POS operations and room booking are simplified. Manpower efficiency has seen an upward climb and the Club now saves 20-30% physical effort.
