[idertedype]

The practice facility my son and I belong to includes a huge grass driving range, a bunker complex, two very large practice greens, a wedge range (100 yards with greens, pins, and bunkers), a 9-hole short course (average hole is 75 yards), a regulation 9-hole course, a two story gym, and a learning center, as well as heated bays for the winter. Our membership includes unlimited greens fees, unlimited balls, and all of the aforementioned, including use of the gym. We have a nice restaurant/bar, but there is no food or drink minimum. It's $260 a month for the two of us. Considering how much golf we play, and practice it's an absolute bargain.

Wow, sounds like a neat facility. I've never heard of such a facility that is so focused on developing the participants of a sport outside of US Olympic training facilities or private tennis clubs. Short of giving away your living area, can you provide a link to the facility?

[Optosypoeds]

Having spent the last few weeks cruising between courses close enough to join for next year and finally choosing my course and joining has really had me thinking about the economics of the whole thing. The club I joined is actually owned by a group that owns two area courses. As a result my membership gets me total member privileges for both courses. That is a nice added benefit.
The local courses have been very busy this week. Some warm November weather has arrived just in time for the long weekend and the Friday/Sat/Sun bookings reflect the interest in getting out for a round before the snow flies. Knowing what the bookings are and knowing what the regular cost is I really do wonder about the economics of owning a course. The courses around here are running specials for non members as any revenue they can generate after Nov 1 is almost considered gravy.

It is clear from looking at the numbers that a course MUST generate revenue much like a health club generates revenue. Health club business plans are for the most part based on long term membership as opposed to “per use” invoicing. To be more specific, they are based on the fact that if a health club offers membership at reasonable rates, they will draw new members at a much accelerated pace when compared to offering rates that will likely only be attractive to the hard core user. The spectrum of members broadens when the rates drop with most of the new membership being not as hard core as those that would have joined even at a higher price point. As a consequence the heath club ends up with a much higher percentage of members that do not use the facility that much. As such while the club will take its depreciation tax benefits, the actual equipment is not depreciating at the expected rate because it is not being used nearly as much as intended. For example while I am oversimplifying, this is the Planet Fitness business plan for the most part.
If you look at the full boat cost per golfer for eighteen holes on a weekend , it does not work out all that good for a course when you consider salaries, benefits, equipment etc. In fact I worked out some quick numbers and you could book a number of courses and fill them up with per use invoicings and still be on the hairy edge of failure even if you take into account a decent amount of restaurant and bar invoices and Pro Shop sales.

However I am willing to bet that very few members actually get the full benefit of the cost of their membership in terms of what greens fees per use would have cost. Some members will get more for their money by playing more rounds and taking more advantage of what is offered but most will not. Most will be on the other side of the bell curve. I for one believe that there is a considerable benefit to being a member that goes beyond things like not having to pay greens fees per use and the discounts that full members receive. However it does not take much of a rocket scientist to figure out that if you wanted to base your membership considerations solely on greens fees, it would be hard to make the case for membership as it is difficult to see how you are going to be able to play enough rounds.

If you went to a venture capitol group or equities management group with that formula looking for investment dollars you would likely not find a too receptive audience. It is no wonder that so many courses have gone out of business or changed hands under close to fire sale conditions over the past few years. This analysis and my comments have nothing to do with the premier courses around the country that draw an audience of users that simply want the experience of playing that course.

The course I belong to does now offer a membership plan that is more of a pay in advance plan. You pay a certain amount of money and eat into what is a credit each time you play. If you do not use up the entire credit in a single season it carries over to the next. So in effect you are getting member benefits and a reduced cost per round of golf by paying for them in advance. Even that is not as beneficial to the course as full membership. That said I believe in full membership if one can afford it. Sure, you are not likely to play a bunch of different clubs if you are a member at one. I do think you will see more courses become owned by groups that own more than one and allow members membership to multiple courses.

The cost for membership may actually be higher per round because you just cannot play that many rounds but you do get so much more that helps your golf game and at the end of the day I think that is what you really get from full membership these days. If you take advantage of what your course offers you, you put yourself on a path to much more substantive and long lasting improvement.

So the point of all this is to encourage you to go out and join. I assure you that if you are really interested in improving your golf game, membership at a good course will be an invaluable tool in that regard and you are supporting your game with your dollars in a way that I suddenly realize is probably more vital and important than I thought before I started to run some numbers.
Those in the business of actually running golf courses please feel free to contradict me if you think I am off base. I do not run a golf course and have no experience running a golf course. I am a golfer that simply cannot keep from doing business analysis. So, I do this constantly whether the topic is golf or something else.

[snunsebrugs]

Different types of memberships also MEAN different things.

Equity Memberships
Monthly memberships
Social memberships

Each one means different things and also means a different type of club. An equity golf club does not lose money (in theory), because the club is owned by the members and the dues are assessed. The biggest cost for a golf course is maintenance. On tough years or years with odd weather patterns, you will find courses struggling just like you do with bad economies. Do not forget that its not private clubs that are struggling. The game of golf is struggling as a whole and they are part of that pie.

Choices are a good thing for consumers. Too many choices lead to low costs and battling for business. Golf clubs just like houses went nuts during the boom with resort courses being redone, private facilities being filled, and new facilities popping up.

There are other revenue streams as well. DO not forget cart rentals, trail fees, guest fees, and the million dollar revenue builder....ALCOHOL. What it comes down to is no different in public or private. And frankly any other business in the world. Bring in more revenue than expense and you are okay. Bring in less and you are not. No different than a bar, restaurant, website, or any other business in the world. And just like any other business in the world, when the economy suffers, luxuries such as golf suffer.

[cenRealliat]

I've considered joining a few places in the area.

#1 is a municipal for 660.00/season. It includes two courses and cart fees are extra. I would need to log 35 rounds to make it worth the money. I play one of them quite often since it's very close to my house. My only concern with both courses is that they are incredibly slow at times and one of them gets a lot of undesirables. By that, I mean people who aren't there to play, but to get drunk and act the fool.

#2 is a semi-private that opened to the public this year. The season pass fee is 850.00 and cart fees are extra. Again, I'd need to play around 35 rounds to make it worth the money. The benefit is that the course is (supposed to be) in better shape. That wasn't the case this year and I'm a bit leary of joining because of that. Also, from what I've heard the old membership can be less than accomodating when it comes to the regular folk. I've heard it can get very slow as well.

3# is a private club, and it runs in the area of 1800/year + cart fees + food and bev minimums. It supposed to be nice, but there aren't all that many ammenities other than the golf to make it worth it. For example, no pool for the girlfriend and kid.


I still may consider #1 or #2 next year, but I didn't mind freelancing this year. It gave me some options.

[CicyHannyCeli]

I've looked at options where it's $150 a month and it includes the following:

Free Golf (no cart fee) after 3pm
Unlimited Range Access
discounted rates other times

I did one for $50 a month that includes unlimited range (lighted range, different course) and $20 to play after 3 I believe. Depending how many times I play it will probably be more expensive but the lighted range is a premium for me.

I think I understand the OP point to join and it does make sense sometimes. But this same course I do the range access package, they want $550 a month to play the unlimited package. Basically I dont get to the course until around 3pm anyway so to pay the premium to play whenever doesn't make sense. It's about finding the right package. Im going to eventually go the other course for the golf after 3 but this is good until after the holidays lol.

[snunsebrugs]

It really depends what someone wants in a golf club or country club.

If there goal is to save money on greens fees and practice fees, I always urge against it, because it may or may not work out.

But if there goal is to live a golf lifestyle and the other social activities that go along with joining a club, then I always say dive right in if you can afford it.

[cenRealliat]

It really depends what someone wants in a golf club or country club.

If there goal is to save money on greens fees and practice fees, I always urge against it, because it may or may not work out.

But if there goal is to live a golf lifestyle and the other social activities that go along with joining a club, then I always say dive right in if you can afford it.

I agree and hope to join a club one for that reason. It's not really affordable right now with such a young child (his daycare is basically a house payment), but it will be in the next few years. The third option I listed is actually pretty affordable, but there are no real club ammenities. If I'm going to join, I want there to be benefits for my family. As far as season passes go, I only look at them as a value thing since they don't carry any perks aside from the greens fees being paid for in advance.

[CicyHannyCeli]

For me, right now its about getting as much golf as I can on my budget lol. The bolded quote is definitely in the cards down the road once I can. I've met so many good people in the time I've had the range package its been great. It's nice being able to get off of work, head to the course and talk/play golf.

It really depends what someone wants in a golf club or country club.

If there goal is to save money on greens fees and practice fees, I always urge against it, because it may or may not work out.

But if there goal is to live a golf lifestyle and the other social activities that go along with joining a club, then I always say dive right in if you can afford it.

[ssiikmuz]

I've considered joining a few places in the area.

#1 is a municipal for 660.00/season. It includes two courses and cart fees are extra. I would need to log 35 rounds to make it worth the money. I play one of them quite often since it's very close to my house. My only concern with both courses is that they are incredibly slow at times and one of them gets a lot of undesirables. By that, I mean people who aren't there to play, but to get drunk and act the fool.

#2 is a semi-private that opened to the public this year. The season pass fee is 850.00 and cart fees are extra. Again, I'd need to play around 35 rounds to make it worth the money. The benefit is that the course is (supposed to be) in better shape. That wasn't the case this year and I'm a bit leary of joining because of that. Also, from what I've heard the old membership can be less than accomodating when it comes to the regular folk. I've heard it can get very slow as well.

3# is a private club, and it runs in the area of 1800/year + cart fees + food and bev minimums. It supposed to be nice, but there aren't all that many ammenities other than the golf to make it worth it. For example, no pool for the girlfriend and kid.


I still may consider #1 or #2 next year, but I didn't mind freelancing this year. It gave me some options.

I looked at a couple private courses here when I moveed back to ohio and simply didn't find anything that suited my eye. I mostly play witha bunch of guys after work and we float between 5-6 courses. If I got a membership and needed to play 35 rounds, it would limit my desire to play other courses since it would cost me extra greens fees aside from the money already put into my "home" course.

One day I'll join one, but it won't be for just golf. As hawk mentioned, it will be for the pool and the social aspects for my family. Having a cheap place to let my kids play golf (and they WILL play golf) as they grow up is invaluable. The other major time would be when I retire and want to play 6 rounds a week throughout the summer. I can't WAIT for those days!

[imnaone]

Just saw the quote at the bottom of your signature, JB. I love that commercial!

[Optosypoeds]

The general sentiment seems to be to join for more than access to the course sans greens fees and in a round about way, that is what I implied. I absolutely agree with that as getting enough golf in to make the numbers pan out for a members looks darned difficult to me and yes I was trying to get the bar and food tally in the revenue picture when I ran my original numbers. A member pays just about nothing for an electric cart at the place I am a member....$5.00 to be exact.

JB, while you are correct about being in the black vs being in red from the perspective of staying alive, Venture Capitol and Equities based partnership groups have a whole different take on that. One of the points I was trying to make is that I can see how difficult it is to attract investment dollars to a golf course as a business....probably easier in locals where the course can stay open all year I would guess but I would bet still difficult unless there is a whole bunch of other stuff that is not even golf related that feeds the revenue pie with golf just being one piece of the puzzle.

Tough business and it makes me appreciate having a well maintained course to go to even more.

[amimabremiBit]

I would think that "Rounds Played" would be your bench mark, the mix of member/non-member rounds would be a driver as to where you need to focus your marketing efforts. I wonder what the break even number is. Revenue for other sources food, pro-shop, etc would be the difference between profit/loss.

[viepedorlella]

JB is right about the lifestyle. I like having the employees know me and my family, I like being able to take a cart just to drive to the range so I can sit in it and watch my daughter hit balls, I like being able to drive over to some open holes if the course gets backed up on several holes, I like the organized men's club, I like J.L. and Mrs. Esox being able to hit balls whenever they want, I like having a junior program for J.L. where the fee is almost nothing because we're members, I like getting credit in an account every time I buy something so at the end of the year I have some fun money to spend, I like...., I like...., I like....

I can't imagine not having one, and I only belong to a semi-private club.

Kevin

[pesty4077]

This post makes me sad when I see the highest costed site being in the 2k a year range. Most places I've looked at in Vancouver are generally 3 to 8k per family member per year plus somewhere between 20 and 125k entry fee per person.

At least I know why so many Vancouverites play 90% of their yearly golf in cali/flordia.

[Kiariitf]

The practice facility my son and I belong to includes a huge grass driving range, a bunker complex, two very large practice greens, a wedge range (100 yards with greens, pins, and bunkers), a 9-hole short course (average hole is 75 yards), a regulation 9-hole course, a two story gym, and a learning center, as well as heated bays for the winter. Our membership includes unlimited greens fees, unlimited balls, and all of the aforementioned, including use of the gym. We have a nice restaurant/bar, but there is no food or drink minimum. It's $260 a month for the two of us. Considering how much golf we play, and practice it's an absolute bargain.