[Adam_F_Collins]

After reading a few threads which discuss clubhouses, practice facilities, etc. it seems to me that there are some people at GCA with a fair amount of knowledge (or, at least strong opinions) about golf clubs and how they run.

So I ask you, what is the right formula for running a successful golf operation? It seems like there are a lot of operations which are trying too hard to "broaden their client base", by offering more and more to those whose interest really isn't in the golf (ie tennis, curling, real estate, restaurants, conferences, etc).

If I were planning to create a new golf course, where should I spend my money? Is it best for me to spend it on good land, great designer and a superintendent that can maintain the course as the designer intended?

What should the priorities be? What should be in/what should be out? And will what's in be able to balance the books?

I've often wondered, because I see a lot of courses with rising green fees - yet there's still so many floundering operations...how to be successful?

[Patrick_Mucci]

Adam,

Even if there was a successful formula, noone would adhere to it.

Most think they know better.

Egos and politics will insure that your successful formula would be quickly dispatched.

[Joel_Stewart]

Join a club you believe in.  Like I said the other day, there are clubs for golfers and clubs for people who play golf.

If you are building a club, use the Mike Keiser model.

[cary lichtenstein]

Adam:

Go directly to Friars Head.

The owner will give you his outline. Follow it exactly, do not deviate at all.

If you do so, you will pass go, collect great golfers, make wonderful friends, and live happily ever after.

Then please invite me to your special place

Cary Lichtenstein

[A_Clay_Man]

Maybe it's the wrong question?
But models like a Wild Horse come extrememly close to doing it right. The focus on the course along with the modest facilities, probably make any debt service headaches non-existent.

The failed models are better learning tools.

Then there's Pinon Hills, which did it all pretty right but have let non-golfers dictate everything. Needless to say it is golf's biggest clusterf^%$.

[Adam_F_Collins]

Maybe it's the wrong question?

What's the right one?

[A_Clay_Man]

The right question then becomes, Why do they fail? And the "they", is multi-leveled. The big world theory allows for one man's garbage to be another man's feast, so the question needs to be more specific.

For instance:
I recently heard how a city had hired a consultant. The consultant gave the go-ahead on a 19 million dollar project that included a golf course. The consultant stated in his results that the golf course would supply all the needed revenue to handle the debt. BUT, if you looked closely at the consultant's figures, he had based it on 113k rounds per year. An impossibility given the climate and demographics.


Now, this course is not a failure, but the city sure wants to know what the heck happened. La Quinta is about to make a similar mistake with their 27mil $ fiasco. Luckily they can just keep pushing the burden, onto future constituents.

[Adam_F_Collins]

Certainly, different areas and situations will require different solutions - so a 'formula' would surely be a generalization.

...but discussion boards are nothing if not a place for generalizations.

So...generalize away.

[Doug Siebert]

Best formula I can think of is to be extremely wealthy so you can fund the whole thing yourself and don't need to worry about those damn annoying members, attracting people willing to pay to play your course, etc.  Then find someone who has designed a number of courses you like and work with them to find a site and pay them whatever they want to let their imagination run wild.  If you do this, be sure to invite me to play it!

Of course, there's always the tried and true...

Step 1) collect underwear
Step 2) ? ? ?
Step 3) profit!

[A_Clay_Man]

Adam, Generalizing is an issue, especially in golf. And apparently especially special when discussing gca. Since the variables, that do go into any project, vary from one site to the next, making blanket statements will offend the exceptions.

Sometime ago, someone asked to sum up golf in one word. I chose, decency. One of the realities of for-profit ventures is the ease with which the principle pulls the plug on that. And with Municipalities, the greed seems to have evolved to be even greater, because decency has nothing to do with it, if you're not a golfer.

[RJ_Daley]

Whether a private or public facility, I think Doug S., is on the right track.  You need to be "the boss" and committed to your vision.  You need to be in a finacial position to dictate to a customer base, once you have determined that such a market is big enough in the first place.  

Anotherwords, if you are running a public facility, you need to define what it is your vision intends to offer, identify the depth of the market that supports such a vision that you define upfront to them as a reasonable expectation of what product they will have an opportunity to buy into.  If that market is willing to buy "marked to market and cost to operate the faclity" in vehicles such as yearly passes or some other upfront experession of support, then you need to run the place as projected in the vision.

As I stated on the other thread, I think you must start with an efficient F&B model that commences on the minimal-yet quality side of the spectrum.  I might think of the F&B in terms of whether it could stand alone and run profitably without a golf course even there.  What sense is there in a model that will only through off minimal projected operating profits off of green fees or membership and dues fees, if the F&B model is over done and is a loose from the get-go?  

Ideally, identify all the fanatical golfers in the market that have tendancies towards alcoholism, love to linger and brag on their rounds, and are voracious chow hounds.  Simple, no?  

[THuckaby2]

Step 1) collect underwear
Step 2) ? ? ?
Step 3) profit!

I never thought I'd see the day.  South Park references in this august forum.  LONG LIVE THE UNDERPANTS GNOMES!

 

Well done, Doug.  Just wanted you to know the reference was noted.

TH

[michael j fay]

Red Stick in Vero Beach is a great exemplar:

It is a Golf Club dedicated to the serving of its members during the golfing hours of the day.

As the sun comes up the members arrive are served coffee and breakfast are provided with periodicals and change into their cleaned and polished shoes.

They go to a perfect practice facility are assigned a caddy and they play an impeccably groomed golf course.

After golf they have lunch. The facility that provides this is small and intimate although perfectly appointed. They even have a nicely stocked golf library.

When the sun goes down they lock the gate and everyone goes home.

[Steve_Roths]

I would throw in Champions Club as a prime example of how do things right.  

[Adam_F_Collins]

I've heard that some of why Pine Valley is held in such high esteem is because it is 'pure golf' or 'all about the golf'. Do people who have been there agree?

[Adam_F_Collins]

Around here, there are a few courses which are designed, built and operated by people who used to farm the land. They're relatively inexpensive, they're not pretentious, they're busy and profitable. They've got happy atmospheres...

The only thing missing is a decent design.

Now what if the same farmer had half a clue about design? Couldn't that be some great golf?

Is there a formula for design which wouldn't end up being such a black hole for money? Why do so many golf courses struggle financially?

[paul cowley]

adam your close.....

i helped design and build a course for apple farmers with no land cost and and an overall budjet of 1.8 mil that included the course ,clubhouse with restaurant ,maintenance bldg and interest carry the first year on the construction loan...they made money the first year ,and the course was awarded golf digests best new bargain couse honors and now is one of only twelve 4 1/2 star public access courses in new york state....beth page is the lone 5 star.
they charge thirty bucks with cart and have no members...and are far from the norm.

but the only formula is to match your market and membership with your project costs and anticipated revenues......easier said than done....

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