Country clubs face an ever-evolving landscape of challenges and opportunities in their pursuit of providing exceptional experiences to members and ensuring financial sustainability. One key area where country clubs can benefit significantly is golf course agronomy, which plays a pivotal role in member satisfaction and overall profitability.
Here’s a compilation of data and performance metrics discussed at the Golf Inc. Innovation Summit. KPI Principal & Founder was selected as a keynote presenter.
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Stuart Lindsay has been in technology and data-driven marketing research since the early ’80’s. He’s one of the golf industry’s foremost thought leaders on industry trends, localized marketing research, weather impact statistics, and fact-based decision-making for club operators.
Today, we’re digging deep into where the golf business has been and where it’s heading…and most importantly, what club owners can do about it.
So, lot’s of clubs can’t (or won’t) shell out 6-figures for a full service management contract – for good reason in many cases…
But in a lot of markets, it’s becoming harder and harder for stand-alone clubs to compete in terms of economies of scale and buying power…
So what can the “little guys” do to contain costs?
Data in the golf industry is completely fragmented. There are more than 20 major point of sale systems (think cash registers with accounting software)…and they don’t speak the same language.
There’s really no system of aggregating and using big customer data in the golf business…until now.
John Brown is talking with one particular golf course owner about operating expenses on our Club Operator’s Forum. This is a 6-week program where we discuss golf industry trends, and share insights on how club owners can compete and make life better for themselves.
It’s common practice to stick with vendors for long periods of time, especially if you feel like they’re “taking care of you”.
Facility: 81 Hole Private Golf Community with 4 Clubhouses, Marina, and 1,200 Members
Location: Southeastern United States
Ownership: Private Ownership/Developer
Focus: Containing Costs and Return to Profitability
About: This is a very successful well established golf community with associated real estate, marina and many other components. Their $23 Million operating budget has gotten away from them leading to an annual loss of $1.5 Million.
KPI’s John Brown and Casey Bourque discuss the advantages of golf course clustering for golfers, staff members and for operators. According to John, this was a hugely successful strategy that helped many of his managed clubs in the past. Whether it’s buying power, shared supplies, or improved opportunities for customers to play golf, clustering is a great idea.
John Brown, Sr. is back and ready to compete with his former company, Brown Golf Management.
His new company, KPI Golf Management, will seek third-party management contracts, consulting work and leasing, mostly with private clubs. Read more
Article published Dec. 11, 2018
by John A. Brown Jr. – Principal, KPI Golf Management | john@kpigolf.com
The economy has been frothy for a long time now. Baby Boomers are retiring and playing a ton of golf…but neither will last forever.
This article is aimed at helping golf courses in tight markets to win market share while you still can, offset your senior players as they begin aging out of the system, and survive the next wave of golf course closings.
Facility: 18-hole championship course, fitness center, large pool complex, indoor and outdoor golf practice facilities, multiple restaurants with catering.
Location: Southwestern United States
Ownership: Formerly owned privately until membership group purchased the club in the mid-2000’s.
Focus: Cost Containment
About: This club was struggling to break even financially despite a rich history and strong local reputation. With so many amenities and club assets, there were a few major, and unique hurdles that we needed to overcome to be successful.
Facility: 54-Hole public municipal golf course
Location: Southeastern United States
Ownership: Municipal – County Owned
Focus: Containing Costs and Return to Profitability
About: This is a county-owned golf facility that was losing several hundred thousand dollars on an annual basis. Because of its municipal status, they couldn’t make a great deal of money through the operation, but certainly didn’t want to lose. We were charged with helping the facility break even.
Facility: An 18-hole, 350 members country club with golf, pool, tennis and dining
Location: Northeastern United States
Ownership: Individual Private Ownership
Focus: Containing Costs and Return to Profitability
About: This is a well-established country club with an annual operating budget of $3 Million. When we were brought in, the club had been managed by another golf management company. The club was losing $350,000 annually
Facility: Private Full Service Country Club on a Barrier Island
Location: Southeastern United States
Ownership: Member Owned
Focus: Financial Turnaround & Cost Containment
About: Club offers 18 holes of top-end golf, beaches, pools, tennis, fine and casual dining, property ownership, equestrian, and other amenities in a secluded private island environment. Despite a roster of over 900 club members, this facility was bleeding money. The annual operating budget of $20 million was sinking this extraordinary place slowly but surely.