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”.
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.
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.
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: 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.