Business model for remote courses?

[Frank M]

I am pretty much completely uninformed when it comes to the whole idea of a business model for remote courses (i.e. those in the Sand Hills of Nebraska, Sutton Bay, Sagebrush, etc.). I'm not sure how much information people here would be willing to divulge, but is there any light that can be shed on this?Do the courses rely simply on their membership, dues, accommodations, food sales and other activities offered? How about a course like The Prairie Club open to the public?

[Garland Bayley]

Frank,

I think one thing to consider is that if they are build inexpensively using minimalism, they need less income to keep going. Also, I believe often times there is less maintenance costs when the land is left to lie as it always has.

[Dave McCollum]

I’d say Garland is missing the key ingredient:  very deep and bulging pockets.

[Adrian_Stiff]

Garland - I am not sure...some of the design fees are more than the budgets I am used too building UK courses. You still need irrigation, build wise and maintenance wise it might not be so cheap to be the biggest factor.

[Adam Clayman]

Bayside is a great example of how to do it on a limited budget, with patience. !0 years before you should expect to turn a dime and then it's barely enough to cover maintenance costs.

Figure it's a 3 day a week business. Thursday Friday Saturday. And that was only true at Bayside because Jason created "Play the West". So there, they basically have about 72 days to make their revenue.

The other difficult aspect of remote, is getting acceptable help. Most crews here, are college and high school kids that can't work past the middle of August. The elderly retired types is a source, but, other than sitting on a mower or in a pro-shop, there's not too much they can handle.

[Kalen Braley]

I've heard it said a few times on this board over the years....

That the best model is a owner who is building a retreat to get it away from it all, and pretty much as that...not a money making venture.

Has anywhere, (I'm guessing Sand Hills would be the most likely), been able to recover all the funds back from their initial investment outlay?

[Chris Johnston]

Frank-

The model for Dismal River is usage based.  With a lodging component, excellent F&B, and little debt, we are a one stop club.  Members and their guests stay, play, and eat on site, usually 2-3 nights.  Membership is very affordable as we benefit from both dues and usage.  We are like other national destinationclubs in this regard and members always bring guests with them.  We also do a little bit of corporate group business on weekdays and have corporate members who use the club as well.  If we had large debt, or didn't have ample lodging, I don't believe the model would work very well today.  Building lodging costs big buck$.  Out here, we have no water costs.

Following the Scotland/Ireland models, we do welcome limited outside play, usually in foursomes on weekdays and typically sponsored by a PGA Pro or direct contact with me or Greg.  Today, non member sponsored play is restricted and it will get more limited as memberhips are sold and member/guest usage increases.  We also credit part of spending for a "look see" visit towards the non refundable membership deposit.  I believe Sand Hills allows one outside visit per lifetime.  We are working right now to decrease member sponsored guest rates for next year and, today, we charge one rate for play all day, plus cart.

I think all clubs out this way to a variant of the same, especially so the clubs with a lodging component.

Hope it helps.

[Bill_McBride]

I’d say Garland is missing the key ingredient:  very deep and bulging pockets.

How do you get to be a millionaire in the golf business?

Start with five million.....

[Frank M]

It's interesting to read all the different perspectives. I'd like to clarify that I am trying to understand how to keep a golf course afloat (or break even) rather than trying to turn a remote golf course into a money factory. From the posts so far, I gather it comes down to the proper fusion of business model and long term vision/plan for the club.

[Gary Slatter]

In Canada and the USA, deep pockets and patience are required.

In Barbados and several other island nations, money laundering is preferrred business model.  i.e. resort with 357 employees averages 4 guests per week (2 golfers), however sends good profit back to european owners.

[Ian Andrew]

I think one thing to consider is that if they are build inexpensively using minimalism

Garland,

The irrigtion costs are still high regardless of approach.

[Ulrich Mayring]

It's like those restaurants, where you never see anyone inside, but they carry on unfazed year after year. Everyone around them goes bust or changes owners at some point, but they never even refurbish and the menu is the same as ten years ago.

Ulrich

[Chris Johnston]

I think one thing to consider is that if they are build inexpensively using minimalism

Garland,

The irrigtion costs are still high regardless of approach.

Ian - you are right on.  We already have a well and a ff line to a good part of the new course.  Efficiency is the key - that's why we have Don "Dirt" Mahaffey involved and I'm holding one of his wedges hostage.  Irrigation was very carried away engineering wise the last decade.  Today, it is a good time to buy a system.