How would you go about operating a golf course?

Mulligan9111

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So there has been talk about golf courses closing, and that golf is declining, and yada yada yada. I don't necessarily agree that golf is in bad shape, just normalizing after the big boom we had in the early 2000's.

So my question for you all is this, if you were asked to take over management of a course, how would you go about operating a golf course?

What would be your first steps in trying to generate more revenue? Do you go private? Go semi-private? Full public?
Do you worry more about clubhouse amenities at first? Or worry about course conditions?
If you focus on course conditions, do you look into possibly changing the layout? Or focus solely on condition?
If you worry about amenities, which ones do you focus on first? Food? Locker rooms? Showers?

I'll be honest and say that I think about these types of things when I go to a course. I look at what I think works for them and what I consider their best features, and then I compare that with other courses in the area and eventually think of how I'd run my own course. I think it would be really interesting to hear how people from different parts of the country would run a course.
 
I'd go Semi private, unless I see that there isn't a good private option in the area, and I think the area can support it.

I focus on conditions first, and I don't change layouts unless it seriously needs it. Food would be the first area I tackle when it comes to ammenities. I focus on decent price basic options, Cokes, cheap beer and hot dogs. While also providing good food and high end beers inside.

I would also focus pretty heavily on pace of play.
 
I'd go Semi private, unless I see that there isn't a good private option in the area, and I think the area can support it.

I focus on conditions first, and I don't change layouts unless it seriously needs it. Food would be the first area I tackle when it comes to ammenities. I focus on decent price basic options, Cokes, cheap beer and hot dogs. While also providing good food and high end beers inside.

I would also focus pretty heavily on pace of play.

Do you think courses that start semi-private would benefit from going full private if they see considerable membership gains in the first 4-5 years? Or would you be of the opinion that if it isn't broke, don't change it?
 
I'd have it closed to everybody but me and invited guests :D
 
I think this is a really good question! I honestly, do not know enough about running a golf course to even consider answering. I could look at financial statements, do some forecasting/scenarios in Excel and come up with a suggestion for areas of improvement based on where the courses margin would benefit the most, but I would be looking at numbers only.

Each answer requires a capital investment to make the change and all investments carry risk. Much like gambling, the higher the investment (risk), the higher the return.
 
Bar and restaurant. Start there. It can be open year round. Can see business rain or shine. There's more profit margin in food and beverage. Get people to your course with the food.


Fun fact, my home course makes the same amount of money on 3 dozen Pro-V1s as it does for every 9 Coors Lights.
 
Do you think courses that start semi-private would benefit from going full private if they see considerable membership gains in the first 4-5 years? Or would you be of the opinion that if it isn't broke, don't change it?
Absolutely, guaranteed income through monthly memberships would be awesome. And it's much easier to keep members happy if the average idiot isn't allowed on the course.
 
But on second thought I'd go with Mark's answer.
 
Bar and restaurant. Start there. It can be open year round. Can see business rain or shine. There's more profit margin in food and beverage. Get people to your course with the food.


Fun fact, my home course makes the same amount of money on 3 dozen Pro-V1s as it does for every 9 Coors Lights.
$1.50 hot dogs. How do you justify a $4.00 hot dog?
 
$1.50 hot dogs. How do you justify a $4.00 hot dog?

Depends on the quality of the hot dog. Plus, if it's the only thing there to eat, you would be in a bit of a predicament.
 
I would
- Go Semi-Private. Give preferential tee times to my members & a dedicated area to practice only for them.
- Focus on course conditions and practice areas. The practice greens and short game area (bunkers) would mimic what you expect to encounter out on the course. Well manicured range and tee boxes. I would try to use as much as the natural water for irrigation and let the rough grow naturally where it could to help with maintenance costs.
- I would create a monthly/yearly Player Program where you get unlimited range time and discounted tee times if you are not a full member.
- Hire Marshalls who understand and enforce pace of play.
- I would focus on creating a pro shop that catered to my demographic and stock apparel/equipment that interests them.
- Invest in a Trackman to enhance fittings and help my Pro's generate revenue via fittings.
- Make it known we honor and will price match any online or big box store for equipment we carry.
- Talk to the local High School golf coaches and let them know our facilities are available for their teams to practice free & discounted tee times for students.
- Build out showers for both men and women
- Create a clubhouse environment that is welcoming for families & at the same time have private areas for men or women only should golfers chose that option post round/practice
- Have a decent menu, but won't go all crazy and over think it. Simple menu items that will sell and easy to prepare to keep food costs/waste down.
- Open year round so families will think about eating or socializing at our club just as easy as going to a local restaurant/grill.
 
Absolutely, guaranteed income through monthly memberships would be awesome. And it's much easier to keep members happy if the average idiot isn't allowed on the course.

I'm kinda torn as I think you potentially lose out on a lot of revenue by not allowing the non-members anymore. Then again, I think it could potentially increase membership if some of those non-members really liked the course and facility and they couldn't play without being a member.
 
Depends on the quality of the hot dog. Plus, if it's the only thing there to eat, you would be in a bit of a predicament.
I love a hot dog and have eaten them all my life all over the world and have never seen one worth $4.00. If they had $1.50 hot dogs at my course, I would probably get 2 even if I wasn't very hungry , just because I like hot dogs. At $4.00 it just p****s me off and I buy none. I can stop on the way home and get one
 
I'm kinda torn as I think you potentially lose out on a lot of revenue by not allowing the non-members anymore. Then again, I think it could potentially increase membership if some of those non-members really liked the course and facility and they couldn't play without being a member.
If I can full a tee sheet with members who are paying whether they play or not, that's much better than getting the public to me. Who only play when the weathers nice.
 
I love a hot dog and have eaten them all my life all over the world and have never seen one worth $4.00. If they had $1.50 hot dogs at my course, I would probably get 2 even if I wasn't very hungry , just because I like hot dogs. At $4.00 it just p****s me off and I buy none. I can stop on the way home and get one

Well, here in Wisco, we only use the finest pig anuses to make our hot dogs. They are worth $4.00. :thumb:
 
If I can full a tee sheet with members who are paying whether they play or not, that's much better than getting the public to me. Who only play when the weathers nice.

What if you had a policy where it was members only until say 1pm? And then after that you allowed public play? So members still get those prime tee times and the course to themselves essentially.
 
What if you had a policy where it was members only until say 1pm? And then after that you allowed public play? So members still get those prime tee times and the course to themselves essentially.
If I were close to having enough members but not there yet, that would be a solution.

I would probably start off with a similar situation, but with the cutoff being more like 9-10.
 
Well, here in Wisco, we only use the finest pig anuses to make our hot dogs. They are worth $4.00. :thumb:
In the south, we use toes, nose, ears and foreskins. Only worth $1.50.
 
If I were close to having enough members but not there yet, that would be a solution.

I would probably start off with a similar situation, but with the cutoff being more like 9-10.


Thanks for the conversation. There is a course here in Lincoln that started full private and went semi-private 6 or 7 years ago until last year, and they wouldn't allow public play until after 12 PM. I joined when they went full private again last year and in the afternoons the course was usually wide open. I just always felt that they were losing out on revenue by not allowing non-members to play when most of the members weren't playing.
 
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Here in this area, we have one county club and it's falling on hard times. If I was in charge, I'd change it to semi-private to start. I'd focus on the golf course and playing conditions first and then inside after that. They don't have a pace of play problem there, they have a play problem. Membership without F&B minimums would be key. If you want to have a pre-paid tab at the bar, that's fine, but not necessary. If you make the food and drinks affordable but still make a small margin, then they'll still buy it.
 
Face lift to the course, maybe rebuild the greens. Semi private and get a very attractive cart girl or 3.
 
Semi private.

Save on: fertilizers, weed killers, personnel, maintenance of areas not in play. I favor the minimalist design of Pinehurst or Rio. Save on regular recurring expenses like fuel and water.

Make money on: real estate around the course, F and B, family amenities while Dad is playing. Support the junior program. Have a range with monitors and a fitter and pro shop.

Offer financial incentives for membership, but keep the green fees low for the playing public.
 
I find that a few of the suggestions around here are based on what we want as golfers but not necessarily what would be good to keep the golf course operational.

It's all about what gives you the best bang for the buck.

I certainly would not be giving the course a face lift as that would cost way too much capital investment for a return that is unknown.
In terms of price matching big box stores, that might end up costing the club money depending on the promo that is being given by the big box stores where they are just blowing out product and taking a hit.

I'd go with the following:
- Focusing on how to get more purchases for food and beverage -- Especially the liquor. I'd focus on the cart and restaurant portion. I'd rather revamp the dining area and menu before actually touching the course.
- Price matching on soft goods wouldn't be a problem because there are high margins on clothes but not on balls and gear
- I'd consider converting to a semi-Private course until a certain time & then come up with an inviting proposal to get members who join the club at a good rate
- Promoting a junior program to get the younger generation involved to help a healthier future clientele
- I'd try to focus on getting the course in good shape with course maintenance.
- I'd offer a buy 9 get one round free promo to get more traffic and hopefully more ppl in the restaurant & cart purchases
- I'd offer a monthly range pass or a pre-paid range pass for x number of buckets and you get a discount if you buy the pre-paid card. This might sound like a douche move, but a lot of people are going to end up losing their range pass before they use up all the buckets.
- Giving access to the range and course for a discounted rate would be a good idea again to drive traffic to the course and hopefully leads to food & beverage purchases

Areas I would not go in (initially):
- Course renovations
- Launch monitors availability -- How many are you realistically going to get? These are quite costly and I don't really see the numbers justifying the cost
 
Love your suggestions. I would certainly try and focus on F&B and have a big enough space to host events like receptions, dances, etc. Basically my goal would be to break even or lose a little on the golf side and make all my money on F&B and banquets.


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Thanks for the conversation. There is a course here in Lincoln that started full private and went semi-private 6 or 7 years ago until last year, and they wouldn't allow public play until after 12 PM. I joined when they went full private again last year and in the afternoons the course was usually wide open. I just always felt that they were losing out on revenue by not allowing non-members to play when most of the members weren't playing.

Which course?


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