We've launched the new forums! Read more here

Golf Course Rates. Why do we pay what we do?

tbanks5

tbanks5

Well-known member
Joined
Apr 24, 2014
Messages
3,120
Reaction score
33
Location
Maryland
Handicap
12.4
How much thought is put into how much is charged to play golf? Why is golf as expensive as it is?

I've put a lot of thought into this recently, but I don't know if there is a cut and dry answer.

First we bring our own equipment (clubs, balls, tees, etc...). Are we paying these rates for an experience? Is the rate what it is, due to the greenskeepers and staff that operate the course? Are we paying the water bill and other utility costs to keep the course open? Why do costs vary from course to course?

I understand famous or resort courses are more expensive due to a number of reasons. But what constitutes a $150 rate vs a $30 dollar one.

For instance 3 courses around me. One is public albeit on a military base (home course), one is public, and one is semi-private. My course is $30 to walk 18 for the avg person. The public course is $38, and the semi-private $42. All three of the courses are roughly equal in difficulty and are all in generally good shape. I give the nod during peak season to the semi-private one as the best shape, but imo it should be since is not public 24/7.

Why the difference in rates?
 
Shooting from the hip here:
-maintenance
-equipment
-staff
-taxes
-municipal bills (garbage/water/heat/gas etc)
-security
-advertising

And then if course courses with a PGA tie-in or courses that have developed a reputation for being great will charge extra just because they can. I don't think course ownership is a ticket to wealth at all, at least when you consider the risks and pitfalls.
 
Several factors could create a difference:

The type of business operating: military is probably not out to make a huge profit, while a private company is trying to maximize revenues

The land cost, where and when it was acquired would impact this.

Water cost, if they have a favorable water situation then it is going to be cheaper to operate.

Overall maintenance level. How well maintained is the course? Every perfectly maintained green and tee box, as well as the fairways costs money for upkeep. Other facilities, such as locker rooms, bathrooms, practice areas cost money to maintain as well.

Finally could be how much traffic they want. If you have a semi private course, they might charge a bit more than a public course to make it worth their while to have members "inconvenienced" by non members playing the course.

I am sure there are tons of other factors I don't know about, but I am sure some who have experience in that segment will chime in.
 
Supply and demand and what the market will pay, along with built in price hikes for being highly ranked along with what courses in the area cost.
 
I'll throw in taxes as a big factor, both on the business and the real estate.
 
JohnSinVA said:
I'll throw in taxes as a big factor, both on the business and the real estate.
Click to expand...

Yeah, that would be a big factor of the business as well.

As someone else said demand is a huge factor. The same reason why my home course the rack rate is $62 to walk on saturday but by 2pm it is $20 to walk. Same course, same costs etc, but people would rather play early in the morning than late in the day.
 
ArmyGolf said:
I don't think course ownership is a ticket to wealth at all, at least when you consider the risks and pitfalls.
Click to expand...

This is very true. One of my favorite courses - Locust Hills in Lebanon IL - closed this year. It had always been privately owned, but five years ago was bought by a local private university as a part of their never-ending expansion. In February this year, they announced that "Despite these improvements, the course has consistently operated at a loss, which has caused the decision to close." Talking with some other course owners and managers around the area, I found out that course had been bleeding money for years, which was why the owner sold it to the university in the first place. It was a good course, and there was always a busy schedule there, yet they were still losing money.

http://www.thehillsatmck.com/
 
Building a golf course(as the owner not the builder) is a great way to lose your money. So many golf courses for sale for a fraction of what they cost to build.
 
It was already stated, however I like to play courses that are generally pricier as the pace of play is better and the rangers at least try to move groups along.
 
Golf is expensive to play because the place to play on is expensive to maintain and build. Between staff and a maintenance crew to keep the grounds playable, I can't even imagine the expense involved.
 
Water water water, oh did I mention water at least in some places. + golf has a dwindling base. Over the last two years prices have gone up $10-15 here. Weekday it's $60 min to play a resort course $80+ on the weekends. The muni are still $20 walk which is where 90% of my golf is played.
 
I'm feeling pretty good about rates around here. I just paid the most I have for a round (outside of being on vacation and playing a couple resort courses) this year earlier today. It's was 35.00 for 18/cart. Up until this year, I played this same course for 10.00 on GN. It went public in 2014 but was the former Cc of. Ashland. It's ranked #8 on the list of top courses under 50.00 in the US and is a mighty fine course. This is the first time on it this year since I have a membership elsewhere and it's not on GN anymore. I've played worse courses that have cost me 100.00 plus when on vacation. I'm not a huge fan of paying much more than this per round, but this course is worth it for sure. Conditions were a little off of what they've been years past but I'm truly blessed with the affordable golf around here. It's pretty much get what you paid for around here. Except GN can be a great equalizer if you're not too picky about when and where you put a tee in the ground.
 
Don't forget amenities.
 
SmiterOfPv1x said:
I'm feeling pretty good about rates around here. I just paid the most I have for a round (outside of being on vacation and playing a couple resort courses) this year earlier today. It's was 35.00 for 18/cart. Up until this year, I played this same course for 10.00 on GN. It went public in 2014 but was the former Cc of. Ashland. It's ranked #8 on the list of top courses under 50.00 in the US and is a mighty fine course. This is the first time on it this year since I have a membership elsewhere and it's not on GN anymore. I've played worse courses that have cost me 100.00 plus when on vacation. I'm not a huge fan of paying much more than this per round, but this course is worth it for sure. Conditions were a little off of what they've been years past but I'm truly blessed with the affordable golf around here. It's pretty much get what you paid for around here. Except GN can be a great equalizer if you're not too picky about when and where you put a tee in the ground.
Click to expand...

Yep Ohio is as good as it gets for value to condition. Light years off difference from growing up in San Diego.
 
I think equipment needs to be cheaper and greens fees need to be more expensive.
 
aklawitter said:
I think equipment needs to be cheaper and greens fees need to be more expensive.
Click to expand...
That would be an interesting dynamic.

Sent from my SM-G930V using Tapatalk
 
NewGlfr said:
LOL, why do you say that?
Click to expand...

Lowers a barrier to entry. Courses have a tough time breaking even. It is more profitable to bulldoze fairways and build condos. Topgolf and such outfits are the future of casual golf, whether you like it or not.
 
aklawitter said:
Lowers a barrier to entry. Courses have a tough time breaking even. It is more profitable to bulldoze fairways and build condos. Topgolf and such outfits are the future of casual golf, whether you like it or not.
Click to expand...

Not sure I follow. How does it lower the barrier? It keeps the barrier the same. If the equipment is cheaper but the locale is more expensive, the cost is the same. I may be misunderstanding your point. Apologies if that is the case.
 
I believe time is more of a barrier to increasing golfer counts, courses are really not that expensive
 
Cheap clubs are easy to find if you don't mind they are 2 or 3 seasons old.


Depends on where you live as far as cheap golf
 
Just my humble opinion:
-too many golf courses were built to sell residential homes in the 80's and 90's-the bubble burst, neither home sales or golf course business was profitable. Many will be sold, probably at a loss for the same purpose or re-development for something that is profitable.

-Private courses, even semi private are going to have a higher staff cost-some one has to clean clubs, clean shoes, store clubs, have them ready for member rounds. I don't play those courses, I do that work myself.

-Many municipalities maintain golf courses, often with a lower cost, no different than public swimming pools, tennis courses, parks, ball diamonds-for the general population, losses paid for with taxes. Many of us do not use these facilities, I happen to use golf facilities. City facilities are a draw to maintain and increase a population base.

-Over all muni costs per hour is certainly cheaper than pounding browns in a local watering hole at anywhere from $7 to $15 a beer.

We have residential courses being sold to developers. It's not a surprise. Unless any ownership group has silly money, investors want a profit.
 
NewGlfr said:
Not sure I follow. How does it lower the barrier? It keeps the barrier the same. If the equipment is cheaper but the locale is more expensive, the cost is the same. I may be misunderstanding your point. Apologies if that is the case.
Click to expand...


how does it not RAISE the barrier to golf? Equipment is a one time cost for many of us. Cost to play determined at time to you go to play, if that is higher, many of us will pass. the clubs, once bought, have the same cost whether you play or not. But heading out the door to spend 10-150 bucks...that is malleable and would have a bigger effect for many of us.

I am a perfect example. I what one member derided as a "good old golf nower". When I want to play I go on there and find a deal that meets my personal comfort level. If there is not one that is what meets my mental cost of "affordable" I don't play. Or I play a lesser course.

Yet when I am out there, I pick up a couple waters, often a mountain dew and a milky way, I tip that cart server well. Revenue the course would not otherwise have.I probably spend as much as it would have been to play a nicer, more expensive course, but in this case it meets my personal value proposition.
 
darthweasel said:
how does it not RAISE the barrier to golf? Equipment is a one time cost for many of us. Cost to play determined at time to you go to play, if that is higher, many of us will pass. the clubs, once bought, have the same cost whether you play or not. But heading out the door to spend 10-150 bucks...that is malleable and would have a bigger effect for many of us.

I am a perfect example. I what one member derided as a "good old golf nower". When I want to play I go on there and find a deal that meets my personal comfort level. If there is not one that is what meets my mental cost of "affordable" I don't play. Or I play a lesser course.

Yet when I am out there, I pick up a couple waters, often a mountain dew and a milky way, I tip that cart server well. Revenue the course would not otherwise have.I probably spend as much as it would have been to play a nicer, more expensive course, but in this case it meets my personal value proposition.
Click to expand...

Yes, that makes a lot of sense. I think the person that posted the initial example was saying it would lower the initial entry.
 
Because well maintained courses are more expensive that less maintained courses. That maintenance costs money. Among other things. Also, golf courses are not non-profit entities. The owners are not in it out of the goodness of their hearts.
 
You must log in or register to reply here.
Back
Top