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.
Private golf clubs have long been a symbol of exclusivity and luxury in the world of golf. However, as we enter 2023, these once-thriving institutions are facing significant challenges. In this article, we will explore the top three reasons why private golf clubs are struggling in 2023 and what they can do to adapt and thrive in an evolving golf landscape.
People see through your cryptic sales pitches and you’re going to piss them off. That’s how you trash your database.
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 discusses the options that struggling and underperforming golf courses have. The first big misconception is that professional advice and exploratory conversations only come with hard sales pitches for club management contracts. This isn’t the case at all.
The logic first step to take is to pick up the phone and call a consulting or golf management company. KPI Golf offers free phone consultations, investing hours in learning about the club’s challenges and assessing best fit.
John bought his first golf course at the age of 23. Ever since, he’s been involved with owning and operating golf facilities of all kinds around the country. In this podcast episode, he discusses the great things about club ownership as well as the downside that comes with it.
Either way, in his 5th decade in the business, John’s always got interesting things to say and value to bring. Read more
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.
Country clubs bringing in outside management do so in one of two major ways:
1. They recognize they need help and expertise to help them move forward optimally.
2. A firm offers to inject some capital over time in exchange for ownership stake in the club (equity vs. non-equity). Read more
When I go to Germany every summer, the days are very long. The sun rises around 4:00 am and sets around 10:30 pm. Golf courses over there have come up with a very creative (and simple) solution for bringing in revenue during those odd hours of the day when nobody is working.
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 golf course, practice facilities and fine dining
Location: Northern New England
Ownership: Privately owned by a single individual
Focus: Market positioning, membership sales and establishment of golf operations
About: This was a full golf course design and construction of a brand new exclusive private golf club. The course was built over the top of a failed public golf course on a large beautiful piece of ground. This was a startup project, owned by one man, engaging a high profile golf course architect.
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: 18-Hole championship golf course, indoor and outdoor pools, indoor and outdoor tennis, large fitness center, and multiple dining and catering venues.
Location: Northern New England
Ownership: Formerly developer owned. Membership group bought golf course and facilities out of bankruptcy.
Focus: Pivoting club operations for a locally underserved private golf market
About: This was a developer owned private facility that went through bankruptcy. It has world class amenities and a great golf course designed by a famous architect. The current membership group bought the golf course and facilities out of bankruptcy.
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.
