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Profit in a driving range?

barryboymunro

barryboymunro

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Tonight the wind is howling and its pee'ing from the high heavens so i'm thinking i'll head to the driving range to get in some practice on my swing and have the place to myself. When i got there i did have the place to myself but it was not even open which kinda winds me up. The place is a complete hole and really needs knocked down and started again so this got me thinking is there much profit in a driving range and are they expensive to get up and running? I know land can be expensive but fitting the range out with equipment would this be expensive? I tend to think that once its up and running then its little or no running costs.

Any info would be great thanks
 
It seems like labor, new supply of balls and maintenance of practice areas and putting greens, add in fertilizer amd seed and it seems like it would add up. The pro at one of the ranges here says owning the range is a time drag and most revenue comes from lessons.
 
The range I use was recently sold to a guy that used to own a golf course way out in the country. He said he was losing his shirt at the course (it was a small 9 hole course) and that he is doing much better financially running the range. I have no idea what his books look like profit wise, just relaying what he has mentioned to me...
 
They can't bring in that much money. I just learnt that my local range is getting bulldozed and turned into a housing estate. The next closest one is 45 minute drive away. Thankfully it's not going to happen for a little while.
 
roswellj said:
They can't bring in that much money. I just learnt that my local range is getting bulldozed and turned into a housing estate. The next closest one is 45 minute drive away. Thankfully it's not going to happen for a little while.
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How much did owner of said driving range sell his land to said housing estate builder? :bashful:
 
Nate said:
How much did owner of said driving range sell his land to said housing estate builder? :bashful:
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Yeah I'm sure that had a lot to do with it. He had heaps of land there and it was in prime real estate territory with new estates going up all around that area. Still a shame though.
 
I like this thread. I spoke to the pro at my local range just before xmass and he told me there were making more money from the range then they were from the 9 hole course attached to it. but he did say on the days when the putting green and practice bunker were closed that they just about covered there costs. With that in mind i can see there profit being very high
 
mhachtx said:
It seems like labor, new supply of balls and maintenance of practice areas and putting greens, add in fertilizer amd seed and it seems like it would add up. The pro at one of the ranges here says owning the range is a time drag and most revenue comes from lessons.
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I talk to the guy that runs the local range/mini-golf, and from what I've heard there is a lot of truth to mhachtx's take here. I don't know how the cost analysis works out, but a very weather dependent, seasonal demand base.
 
i think if your starting up then land can be expensive however if someone can not get residential planning permission on a piece of ground then the value drops so much so you could pick up land cheaper for a range. A world of golf has opened recently in Glasgow and i think Colin Montgomerie has backed it and its a very good facility with two tiers and the hoppers for tee-ing up balls automatically etc etc. I'd imagine it was expensive to kit it out but 100balls is like £8 and i'd say its pretty full most nights it also has an American golf store in it which they will pay high rates for along with a coffee shop and things like yoga classes are also run so lots of revenue from different areas.

The key is make the range an enjoyable experience and you will always be busy
 
Very interesting. We've toyed with the idea of getting onto a driving range as a course shop, and also thought about buying one in the sticks, but we've heard from a lot of people that they can be hard to maintain and make profitable. The range I used to go to growing up was pretty busy b/c I think the pro was good at giving lessons and he really kept people coming in and made them want to practice. When he left, I heard business went way down. Not sure they are even open anymore.
 
I remember reading somewhere that there is basically two ways to go. Low end with really low cost and minimum to keep the range running. Or high end with nice pratice green and chipping area and pro shop etc. I see there being profit in both cases. In Fort Wayne we have two low end driving ranges and they have been open for as long as I can remember so they must be making money. I would love to own something like this and have a high end shop also.
 
I know this driving range in Dallas does pretty well......

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Someone at the range I go TO claims the range is down mid 5 figures for the last 3 months. I guess sometimes they aren't that profitable .
 
That place looks amazing!
 
Nate said:
I know this driving range in Dallas does pretty well......

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HOLY driving range batman!,,

Geez, I don't think I have ever seen anything like that!!
 
That is one heck of a driving range. I bet a bucket there isn't cheap. How in the world could they make a profit with a building like that?? Holy moly. Would be awesome to go once just to see. Depending on the price whether or not to go back... LOL But man it is pretty sweet.
 
It's called Top Golf. It is a range but it isn't. It's a range that contains circle hollow targets that you try and hit golf balls into. Each golf ball contains a chip that registers back to a scoreboard that keeps score depending on which target you hit and how many points that target is worth. I think they have 5 different games you can play. I have no idea if the range balls fly as good as a typical range ball, but I've heard they do. I have yet to venture out to this one because they are usually very packed for happy hours and weekends. One Saturday night we were at a bar and decided to call to see what the wait time was.....2 hours! But I do need to go because I hear its a blast.
 
Looks like they have 2 in the Dallas area, one in Allen and one in Dallas proper.
 
I have seen very few independent driving ranges survive on ball hitting alone. I just don't see how you could make a living off a $7 bucket of balls. You would have to sell a lot of buckets every day/week to offset the overhead. Most of the successful ones I've seen will have another business attached to it. Mostly you see club building and repair, mini-golf, lessons and/or fittings, some even have a full pro-shop where they sell stuff. One range I used to go to near my work had a full pro shop and the guy sold a lot of stuff on e-bay and over the internet. The range was mostly just a place to get deliveries and make shipments.
 
They have one in VA. Never been, but seems like a good place to have a fun night. Although, if I really wanted to go out to practice, not sure if this would be the best spot.

I think if you find a driving range that was in a good location and could have an on-site golf store with a pro who can gives lessons, that would be the best combo.
 
Here in St. Louis there is good profit in a driving range, if you include some type of grill/restaurant/bar. That is what helps to draw people and it also keeps people around longer.
 
The driving range about 25 mins from me has heated booths a putt putt course with batting cages. As well as a tiny pro shop that does fittings and has some clubs but not much. Plus there is a pro who gives lessons too. So they have quite a bit going on there.
 
StLCardsFan said:
I have seen very few independent driving ranges survive on ball hitting alone. I just don't see how you could make a living off a $7 bucket of balls. You would have to sell a lot of buckets every day/week to offset the overhead. Most of the successful ones I've seen will have another business attached to it. Mostly you see club building and repair, mini-golf, lessons and/or fittings, some even have a full pro-shop where they sell stuff. One range I used to go to near my work had a full pro shop and the guy sold a lot of stuff on e-bay and over the internet. The range was mostly just a place to get deliveries and make shipments.
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I think that's right. There used to be a Roger Dunn's (big golf store here in S. Cal) on a driving range down in Long Beach. We heard they went out b/c business was bad. Why? Someone said most people who go to the range are "range rats" and don't spend a lot. I imagine you'd have to move inventory over the internet to make a go of it.
 
Nate said:
I know this driving range in Dallas does pretty well......

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There is a Top Golf in Alexandria, VA that I have been to. It is always crowded & I'm bet they make a ton of $$ because they charge around $5-6 for 20 balls. It has a pool all atmosphere...makes a ton of $$$ off drinks & food too.

Personally I only go there when I can get a good deal off Groupon...or during weekday when you get unlimited balls for $15.
 
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