What's in a name? Private-label locker room amenities can help boost your bottom line.

"At a lot of clubs," explained Gary Robie, owner of Colorado-based Ready Care Industries, "The manager views the locker area as just another expense on the balance sheet."

And, for the most part, it is. By itself, the locker facility cannot generate the kind of revenue that, say, the food and beverage unit would. In essence, the locker room exists solely for the sake of its members--a necessary convenience provided by the club for its members who golf and use the fitness facilities.

That said, managers have been told over and over again in the last few months--and even before the recession, for that matter--that unnecessary expenses should be trimmed as thinly as possible. Locker room amenities, mundane toiletry items like soap and shampoo, are therefore an easy target. The tendency with these items in the club market has been to go cheap.

"This is a mistake on the part of many clubs," said Ernie Torres, sales manager for Greenwich Bay Trading Company, "They are missing out on an opportunity to market this product to their upscale members."

So how would a club turn these locker room basics--something that costs a club money--into a money making enterprise? Through a process called private-labeling. With private-labeling, a club buys a high quality product from a supplier--made of better ingredients with a distinctive aroma or some other feature--and marks it with the club's logo instead of the supplier's. Instantly, the club has created its own "brand" of product that carries with it the reputation and name-recognition of the club in the eyes of its members.

In the case of soap or shampoo "it all starts with filling a liquid dispenser in the locker room with a high-quality product in bulk," Torres explained. "You expose the member to this superior product and they become hooked on it. I would almost say people get addicted to it."

The quality of the product that the member first experiences in the locker room is the linchpin to any club seeking to market their own private-label brand. The next step is to make that same product that they just experienced in the shower available in the club's gift shop, packaged in an attractive bottle bearing the logo of the club.

"It's very easy to get involved in private-labeling," said Laurie Schmidt, president and owner of Sports Solutions Inc. "All we require is a logo that we can scan."

A new way of thinking

But if setting up a private-label line is so easy, why haven't clubs taken advantage of the idea sooner?

"I hate to say it, but there are people in the club market that hate change," Robie said. "There's also a perception that you have to spend a lot of money to do this. That simply isn't true."

Torres agreed with this statement. "There's a big fear and misconception out there that you'd have to spend tens of thousands of dollars in art and set-up fees in order to get it all going," he said.

Interestingly, the spa and bed and breakfast industries have been maximizing the use of private-label products for years. The club industry, thus far, has been slow to follow the lead.

"I think the biggest issue is that spas are into branded products, while clubs are basically still just into golf," Robie said. "They'll have a gift shop, but all they'll be selling with the club's name on it is some shirts or golf balls. They really need to think about taking it a step further."

Robie outlined several important steps for any club wanting to market private-label locker amenities:

1. Install a shower dispenser with the club's logo.

"You start branding the product as soon as the member walks into the shower area. Seeing something with the club's name and logo is very important. It immediately links the product in the dispenser with the club itself."

By using a dispenser, especially those with built-in waste controls like those from Green Suites International or Dispenser Amenities, a club still gets the advantage of using bulk. They just relegate the individually packaged items to gift shop sales exclusively.

2. Put an important product in the dispenser.

It should come as no surprise that most clubs try to go cheap when purchasing soap and shampoo in bulk. "The shampoo and conditioner that these clubs use costs between six and seven dollars per gallon. They need to immediately step up that wholesale cost if they plan on selling a product in the gift shop.

"A quality shampoo product will cost in the $12.50 to $17 per gallon range. This initial cost is about double the cost of the cheaper product, but you're getting something far superior for your money. It will typically have a variety of botanical extracts, vitamins, and moisturizers. A savvy member--the kind who will want to buy this product for themselves--will immediately pick up on the difference."

3. Calculate your needs.

According to Robie, a smaller club will use between 20 and 30 gallons of liquid soap per month, while 50 to 70 gallons is common in a large club. How much soap is used will determine how big the investment in a private-label line will be, especially since a higher-grade product is in the dispensers.

As mentioned previously, some clubs may be scared at the prospect of paying a large sum of money up-front to cover the cost of printing. But for suppliers like Ready Care, they are willing to waive some of those charges to new clients.

"For clubs who want to get started in this, we provide the initial silkscreening for free, along with 50 free bottles each of shampoo, conditioner, and gel for them to try," Robie said.

And, once the clubs have such a product to sell, their ability to mark-up the product is far greater than an average retail store, due to the caliber of the club's membership and its reputation.

"The mark-up potential is fantastic for the club," Torres said, "For example, we might sell one of our bottles to a club for around $2.10 per unit. I've seen the gift shop turn right around and price the item at $9.95 or well over $10 in some instances."

Better still, once a club has established the brand, it can branch out and sell an almost unlimited number of speciality items to its membership, not just soaps and shampoo, but also bathtowels, sponges, nail clippers, and the like, all emblazoned with the club's logo.

"We literally have over 140 products that can all be mixed and matched or arranged in any way to fit the club's needs," Schmidt said.

Sports Solutions specializes in creating complete packages of products with the stylish look of a department store gift set. Their elite Nutri-Essence line, one of several different product lines they offer, includes shampoo, a revitalizing conditioner, a sea bath gelee, a face and body aloe lotion, aroma-botanical sea salts, and a bubble bath soap.

"We would typically present this package in a clear vinyl bag with drawstring, and throw in a soft sponge," Schmidt said.

To complete the offering, the company includes a card with the club's printed logo attached to the bag.

Greenwich Bay Trading Company's premium soaps also come in speciality boxes printed with the client's logo, which the company classifies as its "Gift Shop" line. "By far our most popular package in the line is our Pure Glycerine Collection," Torres noted, "We've had some people

come down to our factory in person because they were so impressed with the soap."

Robie sees the trend toward private-labeling as something that will continue to get more popular with clubs:

"It's inevitable, it will happen. And it's not even a matter of doing something extravagant. If they did something as simple as take a bottle of SPF 15 suntan lotion and put their logo on it, they would already be that much ahead of the game. Spas have always been very much in tune with retail sales. It's only a matter of time before clubs finally start to take advantage of this opportunity that they're missing."

Knollwood Hills Country Club in Granger, IN now offers a variety of different gift baskets for sale to its members. With different themes such as Gourmet Cook, Golfer, and Bathing Beauty, the club has capitalized on a retail niche usually served by specialty stores. The member-benefit from such a service alone is enough to make it worthwhile.

"Even if you don't plan on making a killing off of selling your private-label merchandise, you can at least create a more pleasurable experience for the member by offering these products in the locker room and basically break even," Robie said.

According to Robie, the most appealing prospect to selling private-label products to club members is that you have a captive audience who already respects your club as a brand. And, as the characteristics of club members changes over time--a gradual movement from predominantly 60- and 70-year old members to those in their 30's and 40's--the expectations of the club's offerings will also invariably change.

"I was just down in Florida, and what you see there are huge communities all built up around one or two country clubs and golf courses. Right there you have a consistent, upscale customer base to sell your products to," he said.

So, what's in a name? The potential to sell the strength of your club's image through an endless variety of private-label amenities--and improve the locker room budget to boot.