I was down in North Carolina a few years ago, talking to the CEO of a manufacturing company that had recently relocated from the industrial Northeast to a somewhat more rustic setting just outside of Pinehurst. His company made components for the automobile after-market.
Actually, he kept his old manufacturing facility up and running in his previous location while he opened a newer, larger one in North Carolina. He also chose to relocate his headquarters, along with himself and several executives, to the new location.
As we sat eating breakfast in the elegant dining room of what is now called the Carolina Hotel, a stately hotel that dates back to the early years of Pinehurst and which stands as a symbol of the grandeur of one of golf’s meccas, I couldn’t help but wonder, as I looked around, what it must be like to live and work in a place like that.
So I asked my host.
I fully expected him to tell me about how his handicap had dropped down into the single digits … and he didn’t disappoint me. I also expected him to tell me about the beautiful house he and his wife had built overlooking a gorgeous expanse of golf course … and he didn’t disappoint me on that one, either.
But he also said that that was only part of the reason why he moved his company.
He said the biggest beneficiaries were his sales staff, who now had very little trouble getting potential clients to come visit the plant and to give their products a try. He said his sales had grown dramatically in the two years he had been there.
He also said that the same effect was true from a strategic perspective. His ability to draw in major clients had also improved significantly because of his new location. Why is that? Is a round of golf that powerful in the world of business?
Well, yes and no.
No, if your product or service does not meet or exceed expected standards for quality and price. That should go without saying. But if they do -- and that’s probably why you’re still in business -- the ability to mix business (a plant visit, negotiations on your own turf) with pleasure could give you powerful leverage when it comes to closing deals and bringing in new business.
Now, clearly, the answer to all of your business problems, or even a lot of them, does not lie on the 1st tee of Pinehurst No. 2, or on the slopes near Salt Lake City, or even sailing off the coast of New England. But maybe one or two do.
We have a long and glorious history of this type of business deduction. Just ask the IRS. The only real difference is that the name Pinehurst, or Pebble Beach, carries with it more panache than does your local club.
Anyway, it’s worth a thought.
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