Golf Business Strategy
Recently we were reading an article about a golf course that was in the process of been sold from developers to a group of Members. These Members were raising funds to complete the sale of that (their?) golf course. What was interesting in the article were two key messages from the sale.
Under Promise and Over Deliver
In this case the proposed purchasing group of Members were going against this time proven strategy. They over promised and unfortunately in all likely hood will under deliver. They promised that once the purchase dollars had been raised from NEW Members that they would increase the facility amendments. They mentioned things like Clubhouse renovations, Pickle ball courts, a six hole additional short course and few other items. As the article stated the original plan was to raise enough funds through their Membership offering to purchase the course. But it did not state how or where the additional capital funds would come from for the additional infrastructure. There will likely not be funds available to do the above after the purchase without additional Member assessments. Buyer beware!
Lower Membership Prices Do Not Increase Dollars or Members
The second point stated by the purchasing group in the article was the plan to grow Membership from 200 to 600. They would do this by lowering membership fees. In our 11 of years working with courses through our company, CK Golf, and another 10 years managing golf courses, we can tell you that this never works. Especially if you think that green fee play and revenue will remain the same (which this group thinks it will according to the article). Members are demanding, occupy the best tee times and have high expectations of access to tee times. Members are often the life blood of a Club but they do put a damper on green fee revenue. You cannot expect that you will increase your membership by 300% and maintain current public green fee revenues. This will not happen!
Business Plan and Financial Review
This is what we do at CK Golf! If your golf course needs a FREE consultation on a strategy to help you grow your business and develop a proven strategy, give us a call anytime. Our contact information is available here.
We, Jeff and Tara Ciecko of CK Golf write two blogs, one is our 19th Hole Blog where we share personal experiences and the other an Industry Blog where we comment on general business and internet marketing best practices, sales strategies and give golf industry related opinions. We have owned CK Golf for 9 years and provide marketing, social media and business services to the golf and other industries. As of August 2016 our life and our business have been ‘location independent’. Our 19th Hole Blog is about the places we visit and the things we do. If you have any questions or comments, or happen to be in the same location as us please reach out and contact us anytime.