Featured on the Fairmont Maui Willow Springs Spa site, the picture above made me ponder is the customer getting value for the services rendered. A 55-minute massage starts at $180.
Coffee at the Four Seasons was reported to cost $12. Dinner at the better restaurants for two now costs >$150 with one glass of wine for 90 minutes of dining. To ski Vail, you will fork over $175 for six hours. A three-hour NFL football game will cost >$100 as will better seats for NBA basketball, NHL hockey or MLB baseball.
The golf experience takes 4 hours and averages a posted price of $45. The average price paid is $34 according to the National Golf Foundation’s “Supply Presentation Slide 10” delivered on May 10, 2017.
What is wrong with this picture? Here is a suggestion on how to rectify this inequity.
Like a buoy in a lake, prices must rise across the entire industry for golf course owners to prosper and for all boats to float.
Most golf courses price based on either last year’s rate with perhaps a small $1 increase or based on what their competitors are charging. Both strategies are wrong. There is an easy formula to determine if your green fee price is correct.
All consumers purchase based on a simple formula: value = experience – price. For a golf course, the experience is a combined of the following components:
– Slope rating
– Turf Texture
– MOSAIC Profile
How do these elements combine for to determine the correct price? We have tested our proprietary formula on over 200 golf courses with stunning accuracy.
If you would like to obtain the “secret sauce” to ensure that your green fee and cart rates are correctly priced this year, click here. As a bonus, you will receive a financial modeling worksheet that will guide you in correctly pricing all of their rates by time of the year, time of the day and type of golfer.