"Too many inexperienced operators are using price as a blunt instrument to generate activity."

In Roger Vincent's front page, below the fold story on golf's struggles, the inevitable discussion about "heavy discounting" comes up and as usual, I just can't comprehend the mentality of holding firm on pricing. I know some of you B-school grads out there can explain to me why deflation of prices during lean times amortizes value equity depreciation dynamics, so please help us understand exactly why it is that we read stuff like this:

To boost business, many private clubs are offering no-interest loans to help the less-well-heeled buy memberships, and public courses are rolling out the equivalent of blue-plate specials, including cheaper rates for off hours and discounts on lessons and merchandise.

Some think heavy discounting is a mistake.

"The trend of downward rates in the golf industry has been the real cause for many courses failing," said Mark Tansey, president of Palm Desert-based Sunrise Golf Inc., the company that will run Escena for its owners. "Too many inexperienced operators are using price as a blunt instrument to generate activity."

Not that golfers are protesting.

Dwain Richardson, a hospital food director with an 18 handicap, enjoys the "twilight" specials at the Tahquitz Creek Golf Resort in Palm Springs. By starting midafternoon he can usually play 13 or 14 holes before it gets too dark to see. He pays only $29 and gets the use of a golf cart plus two free drinks at the bar.

Low prices keep golfers like him coming out, he said, which could cement new habits.

"I would play every other day if I could," Richardson said. "I can see why people get addicted."