The 10 Keys to the Financial Success of a Golf Course

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Excerpt from Introduction:

There are 10 rules of thumb that if your understand, the profits for your golf course will soar:

1) Understand the competitive aspects of your market: demand vs. supply.  Chapter 1

2) Offer the proper experience based on blending the slope rating of your golf course to the MOSAIC profile. Chapter 1

3) Define your vision consistent with Maslow’s Hierarchy.  Chapter 2

4) Understand the number of playable days and adjust your staffing and your rate schedule accordingly. Chapter 3

5) The golf course is a living organism that requires constant reinvestment:  $130,000 in annual course improvements and $75,000 for building reserves. Your EBITDA target should be higher than these two financial reserves. Chapter 5

6) The golf course packages various types of discounts by the time of day, day of the week, time of year, and age. Golf is one of the few industries that prostitutes itself seeking to appease every golfer by the least they are willing to pay.  Don’t offer seasons, loyalty cards, and punch passes. Your customer is smarter than you are, and they will purchase the program that generates the lowest yield to you. Chapter 7

7) The green fees should be set based on the experience you provide and not on what your competitors are charging. While barter is terrible, resist the temptation to set your green fee to capture the last possible round of the golfer who is willing to pay the least. Chapter 7

8) Understand your customers’ loyalty through consistent feedback via electronic surveys and text message polls. Chapter 7

9) Sixteen vital key benchmarks provide navigational guidance to the successful operation of a course. Ensure your revenue per round purchases is at least 60% of your prime time green and cart fee. Chapter 8

10) Implement technology where possible to eliminate labor expenses. Explore check-in kiosks and social apps to empower the customer to serve themselves. Chapter 10

Author:  JJ Keegan, Envisioning Strategist and Reality Mentor.  Click here

© 2020, JJKeegan+

 

 

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