There isn’t a golfer on the planet who hasn’t looked at a corner of his home and thought, “You know, I wonder if I could fit a golf simulator there?”
I’d bet all of Paul McCartney’s money and most of my own on it.
And I’ll bet what’s left that the next question was, “I wonder how much it’d cost?”, followed closely by, “How would I get this past the House Ways and Means Committee?”
We golfers are nothing if not predictable.
The home simulator business was growing even before COVID. However, thanks to the worldwide pandemic, it’s been hotter than the Dallas pavement in July. Interestingly, it’s also an industry that’s shifted a bit in focus.
“We used to sell systems for $10,000 to $15,000,” says Rene Delgado, founder and CEO of Dallas-based Indoor Golf Shop. “Since the beginning of the year, we’ve seen customers putting a priority on value. Technology and accuracy are a close second.”
It’s an industry that’s changing as fast as the technology.
Who buys a home golf simulator?
“We golfers are interesting people,” says Delgado, who founded The Indoor Golf Shop in 2017. “We’re very passionate about the game and aren’t afraid to go out and buy a $600 driver. We have this obsession with the game. We want to improve and play golf on our own terms.
“And our demographic has the disposable income to feed that addiction.”
Delgado’s journey to the golf industry is anything but a straight line. Ten years ago, he was working for Beats by Dre, the headphones and electronics company started in 2006 by rapper and record producer Dr. Dre. That May, Apple bought Beats by Dre for $2.4 billion and Delgado transitioned to Corporate America.
“Beats was a very nimble and fast-paced company,” says Delgado. “When Apple bought us, I joined Apple and merged into their ecosystem. Beats had only a couple hundred people. Apple had tens of thousands. My job scope narrowed significantly.
“Frankly, I got bored.”
A bored entrepreneur doesn’t sit still for very long. While trying to think of a new business to start, Delgado decided to buy a launch monitor to feed his lifelong golf passion. When he found it wasn’t as easy as it should have been, the proverbial light bulb went off over his head.
“Everything was so cumbersome. The launch monitor companies were focused on technology and manufacturing and not so much on marketing and selling.”
Figuring he couldn’t have been the only one who found the process difficult, Delgado started The Indoor Golf Shop. The idea was to offer one-stop shopping for home golf simulators in a complete package for the do-it-yourselfer.
Delgado found an eager and underserved niche market almost right away. That niche, however, would explode in March of 2020.
COVID-fueled expansion
Just about everything in golf exploded during COVID, particularly the home simulator business.
“Golf was one of the things people could take refuge in,” Delgado explains. “Our growth fast-forwarded by four, maybe five years. We saw hockey stick-type growth in 2020, 2021 and into 2022.”
A little perspective is needed here. COVID was only four years ago but staying home and buying stuff online was our reality. All of a sudden, buying a full-featured golf simulator for your garage or rec room wasn’t such a crazy idea. Buying a complete package online from one supplier was even better.
“We had several ‘oh, shit’ moments during COVID,” says Delgado. “The biggest one was keeping up with demand. At that time, we weren’t making our own product. We were dependent on other companies and their supply chains.
“That’s when we made a heavy investment in manufacturing to control our own supply chain as much as possible.”
In 2021, The Indoor Golf Shop started manufacturing much of its own product.
“We make all of our own screens, golf mats, enclosures, wall panels and netting right here in Dallas,” says Delgado. “It allows us to be nimble, and it’s been a game changer.”
Staffing challenges
“Hockey stick” growth also creates a human capital challenge, particularly during a global pandemic. Early on Delgado admits to simply throwing healthy bodies at the problem. When the dike is springing leaks, you’re just looking for fingers.
“We kept up with it but, as time went on, we realized some of those people weren’t the right fit for our company, our culture and the values we stand for.”
Once the COVID craziness settled down, the Indoor Golf Shop had a corporate reset in 2022.
“Culture is everything to us. I came from Corporate America, and I really don’t like Corporate America. Every morning, the first thing I do is walk around the entire campus and say ‘good morning’ to everyone. If anybody needs anything, we have an open-door policy and they can come talk to me.”
The Indoor Golf Shop has 65 employees. The main office and factory are in Dallas. There are sales and showroom offices in New Jersey and Chicago and an installation and design center in Toronto.
The Indoor Golf Shop and the changing simulator market
The direct-to-consumer residential market currently makes up about 85 percent of the company’s business.
“Our bread and butter is the complete simulator package we send out on a pallet,” says Delgado. “The customer receives it in one shipment. It has everything they need and is very easy to assemble.”
The most popular package starts at around $5,000. However, as mentioned, Delgado has noticed a shift to more “value-focused” packages. That, of course, is code for “lower-priced.”
“New launch monitor technology opens up more value plays,” he explains. “There are a lot of macroeconomic things going on, so we had to shift and start making new products meant for that lower-priced market.”
It’s impossible to overstate the impact of the newest wave of budget-minded launch monitors. While you can go full Foresight QuadMAX for a cool 20 grand, the Garmin Approach R10 and the Rapsodo MLM2 PRO both offer simulation packages and are under $700. Despite those lower-priced options, Delgado says his most popular launch monitors are in the $2,000 to $3,000 range.
“That would be something like the Bushnell LaunchPro ($1,999), the SkyTrack Plus ($2,495) or the Uneekor EYE MINI Lite ($2,759). Some people want an overhead launch monitor. Those are going to start at around six grand.”
What can you get for, say, $2,000?
“If someone wants to get into a system for about $2,000, they can absolutely do that,” says Delgado. “It’s just a function of what technology and what kind of setup they’re going to get.”
For that price, a screen and projector are doubtful. You’re probably looking at a simple net (a good one will run up to $400), a decent hitting mat (don’t skimp here, plan on around $550) and a Garmin R10 ($599) or a Rapsodo MLM2 PRO ($699). You’ll need a phone or tablet and a TV for video and perhaps a few other accessories, but that’ll get you going.
“A budget option is different for everyone,” Delgado explains. “Our best-selling package is the SIG10, with a simulator enclosure and a premium screen. It comes with turf to occupy the space between the screen and your hitting mat and your choice of projector.”
A full SIG10 package with a SkyTrak+ launch monitor starts at around $5,600. A garage package with a less elaborate enclosure starts at $4,800.
An ever-changing industry
While the price-value matrix may be shifting, we’re obviously not talking about “a chicken in every pot” just yet. For those with the disposable income, the question is whether such a thing is practical in the space available.
The Indoor Golf Store has showrooms at all its locations. The simulators are staged to look like they’re in a home so customers can envision what they’d look like in theirs.
“People are starting to see that some of their buddies have systems in their homes,” says Delgado. “And now they want their own.”
You might think right about now, with winter coming, would be the busiest time for home simulators. You might also think the snowbelt is the busiest market. You’d be wrong on both counts.
“This year sales started really moving in July,” says Delgado. “And California, Texas and Florida are our three best-performing markets, with Texas being our number one state.”
That makes sense in an inverted kind of way. While those of us up north are bracing for winter, golfers in California, Texas and Florida are pointing and laughing. Until it gets below 50, that is. That’s when they head indoors. It’s the same in the dead of summer. Unless you tee off first thing in the morning, you’re probably not hitting the links.
“It gets over 100 degrees in a hurry,” says Delgado.
Your turn, Golfspies …
While it’s possible to jerry-rig something, we’d like to hear what you think about home golf simulators. Do you have one? How did you piece it together? Are you looking for accurate ball data, or do you just want to play Pebble Beach from your rec room?
Inquiring minds want to know.
The post The Indoor Golf Shop and the Evolution of Home Golf Simulators appeared first on MyGolfSpy.
