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Not Quite the Real Thing

Jay Nomakeo

Jay Nomakeo, seen here at a simulator he rents out at the Hadley Golf Center, says simulation is booming, and he is confident that current growth patterns will continue.

 

It might be early April, but Jay Nomakeo is already looking forward to November.

That’s because he’s making serious investments — and some inroads — in an emerging subsector of the broad golf business — simulation.

Nomakeo, a serial golf entrepreneur, if you will, is renting space at the Hadley Golf Center, a recreational facility that boasts everything from a driving range to batting cages to a maze, where he operates four simulators that are rented out to individuals, small groups, and even high school and college golf teams for everything from practicing to playing Pebble Beach — sort of.

The simulators provide a way for golfers to keep at their game during the winter months, and for facilities like the Hadley Golf Center, as well as area courses and golf shops, to earn needed revenue during the slow season.

Many area private and semi-private clubs now boast simulators, which provide additional revenue in some cases, but, more importantly, another way to provide value to members who have a number of choices when it comes to which club to join. Meanwhile, a golf-simulation facility called Top Golf has become part of the retail lineup at MGM Springfield, although the facility closed down during COVID and has yet to reopen.

It’s still an emerging business, but it’s catching on, said Nomakeo, noting that bookings were very solid this past winter, and time was often hard to secure, with the simulators in Hadley rented out to individuals, leagues, students, and faculty from nearby colleges, groups from area country clubs, and more.

“All winter long … we don’t lay anyone off because we generate enough revenue with the simulators to cover our payroll.”

“During the winter, it’s crazy,” he told BusinessWest, adding that most enthusiasts are playing courses, with Pebble Beach and St. Andrews the two favorites. “We sold out every weekend. There was one weekend where we were sold out, but I still got 21 calls during one day looking for times. Simulated golf has just exploded; I’ve seen reports showing that it’s growing 45% a year.”

Dave DiRico, owner of Dave DiRico’s Golf Shop in West Springfield, agreed.

“We have a mixed bag — we have guys who just want to practice, so we sell a practice session for the year, where they’ll come in for half-hours at a time; they’ll hit their whole bag of clubs and get their yardages,” he said. “And we have guys who come in who like to play 18 holes with their buddies. We have college teams that rent them all the time; some of their bigger schools have their own, but the smaller ones do not, so they come in and rent ours.

“They’re booked pretty solid — Fridays, Saturdays, and Sundays, you need a week to 10 days out to book them,” he went on. “But we noticed this winter that our simulators have been sold every day, every hour, almost every minute. All winter long … we don’t lay anyone off because we generate enough revenue with the simulators to cover our payroll.”

DiRico’s store has several simulators, used for practice, playing any of 18 different courses, and also for the fitting of clubs, an additional use that puts the simulators to work for more of the year, which makes his operation different from most others.

Dave DiRico

Dave DiRico says his simulators are used for everything from playing courses like Pebble Beach to getting fitted for new clubs.

This advantage is important, he said, because simulators, while an important addition to the game and the business, have their limitations, especially when it comes to the calendar.

Indeed, whenever they have the choice, golfers will prefer to practice and play outdoors, which means Nomakeo and others are heading into what is definitely their slow season.

“Some people will still use them during the warmer months, but, for the most part, once April 1 hits and you can see green grass on the golf course, people are going outdoors; they’re not staying indoors,” DiRico said. “The business dries up very quickly.”

“With the way we’re seeing these trends with new golfers coming in and others coming back to the game, we want to make sure we’re not boxing them out or potentially losing them again. Ten to 15 years ago, we saw some similar trends, when golf was at its peak and we were getting new golfers. Prices were going up, and we lost some of those fringe golfers.”

Still, despite these obvious limitations, Nomakeo and others are seeing solid opportunities and enough months of business to warrant additional investments.

Indeed, Nomakeo is partnering with others to bring four new simulators to the MCU Center, a multi-sport facility in Agawam located in a old department store. There are two there now, which will be sold, with new models to arrive by the start of the next simulation season.

“We’re hoping to open November 1,” he said, adding that he fully anticipates this emerging business within the golf sector to continue growing and enable this investment to pay for itself in just a few years. “Just a few years ago, golf was declining, but since COVID … I’ve never seen anything like this. It’s absolutely crazy, and simulation is growing at an even greater rate.”

 

— George O’Brien

Sports & Leisure

Buy the Buy

Dave DiRico

Dave DiRico says many people who discovered or rediscovered golf in 2020 are coming back to buy new equipment in 2021.

Dave DiRico says his shop is usually busy in late March and early April as golfers gear up for a new season.

This year, the look and feel have been different, and for many reasons. Golf got an unexpected and much-deserved boost last year when it became one of the few organized sports people could take part in. And it’s received another boost from the fact that Americans have been saving money as perhaps never before, and many of them have also been receiving stimulus checks from the government.

Add it all up, and March and April have been even busier than normal, said DiRico, owner of Dave DiRico’s Golf & Racquet, adding that, for now, he doesn’t see many signs of slowing down.

“We’re seeing it at all levels, all age groups, starting with the seniors,” he said. “They didn’t travel as much over the past year. They haven’t gone out to dinner; they didn’t go on their spring golf trip to Florida. And we’re seeing more of those people buying clubs — and that’s generally not our soft spot.”

That soft spot would be younger professionals and junior golfers, he went on, adding that these people are buying clubs, too, often with the help of the government.

Meanwhile, large numbers of people took up the game last year, or found it again after drifting away from it for whatever reason. Many of these people bought used equipment last year — so much that inventories dwindled significantly — and this year, they’re coming back for new clubs.

“Most of them are deciding to continue to play — they enjoyed it,” DiRico said. “And they’re trading in their used equipment for new stuff — because they intend to stay with it.”

The surge in play and its impact on the retail side of the game is reflected in the numbers. In the third quarter of 2020, for example, retail sales of golf equipment exceeded $1 billion for the first time ever for that period, according to Golf Datatech, an industry research firm. Meanwhile, Callaway Golf Co., which manufactures golf balls in Chicopee, reported a 20% surge in sales in the fourth quarter of 2020.

The problem some players are encountering, though, is limited inventories of new equipment. Indeed, the golf manufacturers, like those who make cars and countless other products, are experiencing supply-chain issues and difficulties getting the materials they need. This has led to sometimes lengthy waits for ordered clubs to be delivered.

“There’s such an increased demand with new golfers across the country that they’re all running out of equipment,” he explained. “They can only manufacture so much, and the demand is far more then they projected. Some companies can’t get shafts, others can’t get grips — you can’t make a golf club unless you have all the components.

“We have a few companies that are great — they’ve managed to stay ahead of this, and they’re doing very well,” he went on. “But then, we have some other companies … you have to wait 15 weeks to get a set of irons.”

Doing some quick math, DiRico said this will translate into delivery sometime in June, far longer than golfers anxious to get their hands on new irons or a new driver want to wait.

But, overall, this would have to be considered a good problem to have — if such things actually exist in business.

Only a few years ago, the golf industry was in a sharp decline, with membership down at most clubs, tee times readily available at public facilities, and racks full of new equipment for which there wasn’t strong demand. Things have changed in a hurry, and DiRico and others hope most of these trends — not the current supply-and-demand issues, certainly — have some permanence to them.

 

—George O’Brien

Business Talk Podcast Special Coverage

We are excited to announce that BusinessWest, in partnership with Living Local, has launched a new podcast series, BusinessTalk. Each episode will feature in-depth interviews and discussions with local industry leaders, providing thoughtful perspectives on the Western Massachuetts economy and the many business ventures that keep it running during these challenging times.

Episode 59: April 5, 2021

George O’Brien talks with Dave DiRico, owner of Dave DiRico’s Golf & Racquet

Dave DiRico

BusinessWest Editor George O’Brien talks with Dave DiRico, owner of Dave DiRico’s Golf & Racquet. The two have a lively discussion about everything from the state of the golf business in the wake of the pandemic — the sport has actually received a big boost from COVID — to how the federal government’s various economic stimulus programs are helping small businesses — like his — by giving people more buying power. It’s must listening, so join us on BusinessTalk, a podcast presented by BusinessWest in partnership with Living Local.

 

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