While financial statements are the measuring stick of a business’s financial performance, the myriad numbers available make it beneficial to rely on a few financial statistics. Financial benchmarking is a tool that provides insights and perspectives to guide golf course owners.
Benchmarking exists for very powerful reasons: to replace guesswork with clarity, reveal performance vs reality, identify opportunities for Improvement, guide strategic decisions, create competitive advantages, and track progress over time.
Unfortunately, benchmarking initiatives have struggled for many reasons:
- Obtaining a statistically valid sample in a competitive market is a challenge.
- The mission of municipal golf courses, with their varying emphasis on profitability, differs from that of daily-fee facilities.
- Management companies provide a platform on which their owners might review their performance causes angst.
Notwithstanding these barriers, many firms have tried, as highlighted in the summary below:
| Player | Core Strength | Key Weakness / Limitation |
| PGA of America | Massive reach, brand authority, member access | Couldn’t drive participation; two failed benchmarking initiatives (PGA Performance Trak and Sagacity partnership); political friction |
| Sagacity | Deep tee-sheet integrations, yield management, utilization analytics | Dependent on operator participation; limited by platform coverage |
| Pellucid | Independent analytics, market-level modeling, weather normalization, longitudinal rigor | Lower visibility among PGA pros; smaller footprint; not a tee-sheet integrator |
| Greenlight Advisors | High-touch financial modeling, valuations, operational diagnostics, investor-grade analysis | Not a broad benchmarking platform; insights are project-based rather than continuous |
| R&A (Course Tracker) | Global reach, institutional credibility | Abandoned due to low participation; limited operator engagement |
Source: ChatGPT
Will benchmarking ever be implemented in the golf industry in a meaningful way? My vote is not. However, there is a different approach that is far more efficient, cost-effective, practical, and easy to implement. It is called heuristics
A heuristic is a practical, experience‑based method for solving problems or making decisions quickly when an optimal or perfectly accurate solution isn’t necessary or feasible. Think of it as a rule of thumb, shortcut, or educated guess that helps you reach a “good enough” answer efficiently.
Heuristics for the foundation of Key Performance Indicators, creating a dashboard of insights that provides the following value:
- A framework for measuring progress
- Ensuring accountability for performance
- Maintaining transparency with the management team.
Regular KPI review meetings can foster a collaborative environment by democratizing information, where departments can discuss findings, share insights, and make data-driven adjustments to holistic operational strategies.
By undertaking this review, golf course owners can make informed decisions aligned with business objectives, adapt to market conditions, visualize key metrics, foster an environment where insights are accessible and actionable, conduct root-cause analysis of performance issues, and identify any discrepancies or anomalies.
This process transforms complex dataset information into intuitive visuals.
Like the current and quick ratios of 2 to 1 and 1 to 1, respectively are a business standard, we have developed 17 KPS for the golf industry.
For the golf industry, there are 17 heuristic benchmarks that provide insights and perspectives regarding the financial performance of the golf course. The key operating numbers a golf course owner should monitor are highlighted below.
| Financial Benchmarks |
| Annual Rounds (Starts vs. 18-hole equivalents) |
| Highest Prime Time Green Fee |
| Annual Unlimited 7 Day Pass Fee |
| Estimated Number of Playable Golf Days |
| Total Green Fee Revenue, including annual passes, loyalty card sales, etc., and Cart Revenue |
| Total Revenue |
| Merchandise Revenue |
| Merchandise Cost of Goods Sold |
| Food Revenue |
| Food Cost of Goods Sold, exclusive of labor |
| Beverage Revenue |
| Beverage Cost of Goods Sold, exclusive of labor |
| Median Household Income With 30 minute drive time |
| Total Salaries |
| Fringe Benefits |
| Total Advertising and Marketing |
| Maintenance Expenses, including associated salaries |
| Chemicals, Fertilizers, and Pesticides |
| Water Expenses |
| Utilities |
| Equipment Repairs with Leased Costs |
| Earnings before Interest, Taxes, Depreciation, Amortization and Management Fee is operated by third party (EBITDA) |
By entering these financial statistics into our AI-driven heuristic model, you’ll receive a thorough analysis that uncovers valuable findings and key viewpoints, helping you determine whether your golf course is truly maximizing its financial potential. This process will reveal, among other things, whether discounting is widespread, if green fee pricing aligns with local demographics and the slope rating, whether salaries are appropriate, and if the cost of goods sold for merchandise, food, and beverage meets industry standards.
Ultimately, you’ll discover opportunities to enhance your net income and strengthen your overall financial performance.
