News:

Welcome to the Golf Club Atlas Discussion Group!

Each user is approved by the Golf Club Atlas editorial staff. For any new inquiries, please contact us.


John Kavanaugh

Paying for your Super to attend the annual GCSAA show...I was there last year and it's like sending your wife to a seminar at Neiman Marcus..

It would be cheaper in the long run and better for your course if you sent them on a seven day jaunt to Scotland/Ireland every year..
« Last Edit: December 01, 2005, 09:35:24 AM by John Kavanaugh »

RDecker

  • Total Karma: 0
In terms of startup/construction costs the answer has to be irrigation systems.  But if you're talking year after year then labor is probably the most costly line item in any super's budget.

BCrosby

  • Total Karma: 0
Isn't the root cause for this more complicated than simply the Augusta syndrome?

Isn't the root cause for the ramp up of these expenses not just that grass has to be kept green, but that it has to be kept (a) green, AND (b) very, very short (at least compared to cutting heights 15 or so years ago)?

Wouldn't letting grass (even green grass ;)) grow higher reduce the need for the super new mowers and wall to wall irrigation and reduce the overall need for water?

Could the root cause for these increased costs be more cutting heights than the Augusta syndrome?

Bob
« Last Edit: December 01, 2005, 10:40:40 AM by BCrosby »

Don_Mahaffey

Money and recognition. Superintendents do not get the big name jobs because they are thrifty. In fact, often it’s quite the opposite. I’ve seen plenty of job postings where experience with $1+ million budget management was required. And the million dollar number is becoming very common. I recently reviewed a budget that was 1.8 Million for a course you’d have never guessed needed that much money to operate. The big jobs come because you have a proven ability to create conditions. One of the behind the scenes sayings in golf course management goes something like “I’m not going to let a $10,000 fungicide application get in the way of my $90,000 job”. Bottom line, supers that wish for the big jobs don’t get them by saving money. Kind of like Dominicans don’t walk off the island.

Architects are no different. Do you guys get the big money by saving money? When a client wants you to do something stupid that is a waste of money, do you refuse? I don’t think the big money and recognition comes from building courses affordably. If that was the case guys like Barney’s brother would be much better known.

Mike_Young

  • Total Karma: 1
Don,
I think some of us keep a niche building affordable courses.  No different than a home builder.

BOB,
I say you are correct with the height of grass...higher greens+ less expensive constrcution, less chemicals, riding mowers vs walkers and it goes on and on
"just standing on a corner in Winslow Arizona"

SB

  • Total Karma: 0
I forgot to mention the real culprit in this:  home developers.

In order to sell homes, everything at the golf course has to look perfect, and an extra couple mill in irrigation, clubhouse, etc. don't matter.  Ditto for day to day maintenance.  The older clubs had to raise their standards to keep up (including major projects that raise fees) and now you've got an arms race.  Once the homes are sold out, just try and lower the standards.  You can't because A) the homeowners around the course will riot; and b) now all the other courses have stepped up and you'll be below the competition.  

Brent Hutto

I agree completely with Mr. Busch. If golf in this country had never changed over from its basis of clubs+munis to the new model where housing+resorts drive the economics the game would be much cheaper.

My basic idea is this. Imagine that the only money coming into the system is the money people are willing to pay for the opportunity to play golf. That's basically a subset of the money flowing into the golf economy today which consists of the money people are willing to pay to play golf plus the money people are willing to pay to have a beautiful green golf course located in their neighborhood. The huge magnitude of this non-golf capital flow is so huge distorts the whole system.

I can see this effect in my own club situation. My former home course was built with housing-development money and both the development and the golf course went through multiple bankruptcies and fire-sale changes of ownership. Throughout it all, though, the resources of the course went first and foremost into a bright-green, lush and perfect state of conditioning 365 days/year which generally resulted in good playing conditions but at a very high cost. Now the whole thing has been purchased by a big-money developer who is taking it upmarket with monthly dues twice as high as the next most expensive clubs in the area, a $20-million clubhouse and staff out the wazoo to do everything short of handing you toilet paper while you sit on the commode. They are now in the process of switching to mowing all the green with walking mowers daily because no other course in town does that, for instance.

As SBusch mentions, most of the non-housing-development courses in town try to maintain the same level of bright-green conditioning that the owners of those expensive houses demand of the course in their back yard. So the whole system gets ratcheted up yet another notch by the arrival of one deep-pockets developer in the market. A very distorted system from the point of view of your basic cost-sensitive "core golfer".

rgkeller

Stop building or maintaining pretty bunkers.

TEPaul

"Tom Paul,
You really crack me up! Your post was the funniest thing I have read on GCA. I can't believe Tom Doak took you seriously."

Garland:

No problem at all. My humor on here generally falls somewhere between the cracks or between the lines. It's just fine with me if some see it and others don't----frankly it's better that way and probably more productive too.

I'm glad TomD took it seriously and answered seriously. Despite my humor I do realize many of these issues are very important and serious ones, and I don't mean to totally make light of them.

There do seem to be some structural problems in this nation in some of these ways. It really is like the general standard of living in this nation has sort of priced some things and some tasks right out of existence (for Americans anyway)!

It's ironic too that some of these immigration (or illegal immigration) issues are coming up right now---eg this illegal immigrant baby "birth-right" issue on one side and some of these American vigilantes manning our Southwestern border on the other side of the issue. I guess irony is putting it mildly! ;)

Is our American standard of liiving and its residual effects beginning to price American manual or menial labor right out of existence? It probably is to some extent. Do programs like H2B or even illegal immigrants across our Southwestern border fill that void? Sure they do in many cases even working for legalized minimum wage and not below it.

The other day a couple of Fox Chapel representatives came east to my club and were talking to our super about a lot of things. The H2B program and its Mexican workers came up. I asked our super if he pays the Mexican H2B workers the same wage he pays American workers and he said absolutely. But then he said from his perspective the wage is not the only issue. He said the H2B guys are twice as productive as their American counterparts and they are about ten times more reliable day in and day out and those sorts of things effect and impact what he does every day which impacts what goes on with the golf course.

I don't care if TomD may've missed the humor or perhaps even noticed it and decided to get serious anyway because he feels these are serious issues. He's right, and frankly I feel his opinion on all these things, including the opinions of our other half dozen or so professional architect contributors to this site are the most important opinions of all our contributors.

These are the realities. Somebody needs to fill the labor void on the lowest rung amongst Americans. I don't see Mexicans being forced across the border legally or illegally. They're coming on their own and sometimes at great peril to themselves because they obviously feel there's a better life for them over here.

This is the way the world works---it's a dynamic that'll probably never end.
« Last Edit: December 01, 2005, 02:03:45 PM by TEPaul »

Troy Alderson

To all,

Golfer expectations is the biggest culprit.  Golf in America has turned into a marketing blitz of perfection.  Our expectations are too high to sustain the golf industry.  That is why the industry is suffering today and rounds are down.  Developers think that increasing the "quality" of the golf course will bring in more golfers.  Keeping the price as low as possible is the key.  Because of this, it is the small low budget golf courses that may actually survive in the long run if managed properly with little input into the maintenance.

IMHO, the USA has ruined the game of golf and turned it into a short lived money making machine.  I applaud the developers that are looking to the classic designs and maintenance of golf courses for long term sustainability.

Troy

David Druzisky

  • Total Karma: 0
It's all in the site.

As we always conclude the sites that golf courses are being built on are now often the "left overs" and it takes a lot more to make golf work on them than when we had better more conducive sites.

If you look at the timing of this the costs have increased siginificantly as time has gone on and sites have become weaker.

If you think construction costs have been high lately just wait for all the numbers we will be seeing in the near future.  It was not that long ago that dirt moving numbers were under $1/yard.  Now fuel costs that much or even more.  It is above $3 now in many areas.  We used to be able to add a little more dirt moving during the work but now it comes at much higher cost to consider.  (This could be a good thing in that all those designers that move the dirt 4 different times to get something right may not be able to as much any more ;))

Concrete costs have risen substantially in the last 2 years because we can not produce enough cement in the US and other markets (China) are grabbing it.  Carts can translate to $600,000 worth of concrete on a job.

Petroleum!  Just imagine all the things that are effected by petroleum.  The irrigation companies keep telling me this is their biggest influence on price.

Once courses are open it still get to labor costs based on expectation.  I believe the Golf Course Owners Assoc is trying to gather better data on expenses and such but you can ask superintendents to break down their staff numbers based on acres of maintained turf and landscape and see how it just adds up.

DbD

PThomas

  • Total Karma: -21

greed?

stupidity ?
199 played, only Augusta National left to play!

George Pazin

  • Total Karma: 0
The other day a couple of Fox Chapel representatives came east to my club and were talking to our super about a lot of things. The H2B program and its Mexican workers came up. I asked our super if he pays the Mexican H2B workers the same wage he pays American workers and he said absolutely. But then he said from his perspective the wage is not the only issue. He said the H2B guys are twice as productive as their American counterparts and they are about ten times more reliable day in and day out and those sorts of things effect and impact what he does every day which impacts what goes on with the golf course.

Now I know where I'll find my next few hires.... :)
Big drivers and hot balls are the product of golf course design that rewards the hit one far then hit one high strategy.  Shinny showed everyone how to take care of this whole technology dilemma. - Pat Brockwell, 6/24/04

TEPaul

"To all,
Golfer expectations is the biggest culprit.  Golf in America has turned into a marketing blitz of perfection.  Our expectations are too high to sustain the golf industry.  That is why the industry is suffering today and rounds are down."

Troy:

Is it any wonder? Everything in America has turned into a marketing blitz. The expectations and the standard of living in this country is too high for too many citizens to sustain themselves. That's why the entire US economy is suffering today and why all kinds of rounds in every walk of life are down (except for that select 1/2 of 1%).

Even lawyers are struggling today and when that happens you can bet your bottom dollar this country is just about in a heap of hurt.

Dick Kirkpatrick

  • Total Karma: 0
The Stimpmeter

Pat Jones

Okay, I've lurked long enough.

If you look at nationwide average spending on maintenance "stuff" (chemicals, equipment, seed, etc.) over the last decade, you won't see that much of an increase beyond inflation.

So, it's all about labor, guys.  National average maintenance budget is around $485k (not including capital improvements).  53% of that, on average, is labor but that amount keeps growing steadily.  It can be 65% or more at private clubs or CCFADs.  Remember, it's not just wages, but also workers comp, health care, etc.

Probably the biggest factor in escalating labor cost is the amount of time-consuming hand labor required at many of the courses built in the last 20 years or so.  Peninsula bunkering that has to be Fly Mo'd, hand raking, edging, walk-behind mowing...the list goes on.  Part of that is competition driven by the Augusta National Syndrome and part of it is architectural features demanded by egotistical idiot owners.

If you're looking at cost factors, start in the kitchen not the maintenance facility.  Food/Bev is a big time money loser at the vast majority of courses, so you subsidize it every time you play or pay your dues.

Last, but not least, I wonder what percentage of your green fee at most clubs and CCFADs build in the '90s goes to debt service.  A lot of those developers borrowed a huge pile of money and sold the banks on pie in the sky business plans ("Sure, we can 60,000 rounds a year in a seasonal golf market at $100 per round!").

Cheers to all...

Pat Jones
Industry Gadfly

 


Joe Hancock

  • Total Karma: 6
Pat,

Good info. Happy to report that I can't relate to any of those stats because of how cheap I am. I understand the labor costs, but can't understand the amount of labor some of these courses expend to maintain. For instance, we MIGHT rake our bunkers thoroughly once in any given week, but that's only if I have my priorities screwed up. If the golfers want a better lie in the sand, then they can do their part in providing it...and they know that's the deal here.

John K,

I like your idea of sending the supers oversees. In fact, because I'm self employed and can't afford to go, I'll give you the opportunity to subsidize my trip in the name of education. I always did like how you think! ;D

Joe
" What the hell is the point of architecture and excellence in design if a "clever" set up trumps it all?" Peter Pallotta, June 21, 2016

"People aren't picking a side of the fairway off a tee because of a randomly internally contoured green ."  jeffwarne, February 24, 2017

Mike_Young

  • Total Karma: 1
Pat,
How are you?
You are right on and I still say most of this goes back to HOC conditions.
Mike
"just standing on a corner in Winslow Arizona"

A.G._Crockett

  • Total Karma: -2
Pat,
How are you?
You are right on and I still say most of this goes back to HOC conditions.
Mike

Mike,
There is a semi-private here in Alpharetta which I have long considered to be the single most overpriced course in the area.  Last year they lost their greens trying to kill Poa in the spring so that they could maintain super-high greens speeds, and fired their long-time super.  Now they've regrassed the greens, and are keeping them way, way too fast for the contours of the greens, to the point of being unplayable to some pin positions.  One can only imagine how much all of that has cost, AND reduced play there.  They're now running membership specials of all sorts, and scrambling for play.  I'm not in the industry by any means, but I'd have to agree with you about HOC, which would also tie back into the labor issue.
"Golf...is usually played with the outward appearance of great dignity.  It is, nevertheless, a game of considerable passion, either of the explosive type, or that which burns inwardly and sears the soul."      Bobby Jones

BCrosby

  • Total Karma: 0
Pat says:

"If you're looking at cost factors, start in the kitchen not the maintenance facility.  Food/Bev is a big time money loser at the vast majority of courses, so you subsidize it every time you play or pay your dues."

I think that's right. Mike Young may have said something like that once too. ;)

Bob



SB

  • Total Karma: 0
There's no question that F&B ops lose money at private clubs.  The question is "what element has increased"?  F&B operations have always lost money.  I'd say things have gotten better recently as formal dining has been cut back, etc.  I do think that maintenance costs have gone up in the last few years, but I think it has mainly to do with new courses with bigger budgets than older courses drastically increasing their budgets.

Garland Bayley

  • Total Karma: 0
...
Sorry, golf carts have nothing to do with it.  Sure, paths cost $300K, but they last 10 years, which is only $30K a year.  A drop in the bucket, even if they didn't actually increase revenue (which they do).

According to the USGA, golf carts do cause the costs to go up. They result in more irrigation and turf maintenance.
They also say that they are a net deficit in costs, because the increase in maintenance cost is more than the increase in revenue.

As a software engineer, I have no clue. I can only report what I read.
"I enjoy a course where the challenges are contained WITHIN it, and recovery is part of the game  not a course where the challenge is to stay ON it." Jeff Warne

Garland Bayley

  • Total Karma: 0
Golf club and equipment manufacturers.

The equipment manufacturers would have you believe that you can buy game. When people spend the bucks, they find they still don't have game. They become less unenthusiastic and play less. This costs the courses money. They try to win the golfers back by improving conditions, thereby adding to the cost.
"I enjoy a course where the challenges are contained WITHIN it, and recovery is part of the game  not a course where the challenge is to stay ON it." Jeff Warne

S. Huffstutler

It's all about labor and if you think it's bad now, wait until they actually do something about illegal immigration. 56% of my budget goes to labor and labor related costs and I don't walk mow anything. As long as my employers demand that the bunkers be raked every day, the fairways be striped, the roughs kept at 1.5 inches, cartpaths edged every two weeks, etc, etc, etc, those costs will continue to rise.

Steve

Tom_Doak

  • Total Karma: 25
S.:

The last time we had a similar discussion I thought you implied that architects were responsible for these high costs.  [My reply pointed out the areas of architecture which have increased budgets.]

However, of the several areas of maintenance you mentioned, only bunker-raking (plus wider fairways, which you did not mention) is in any way related to the design of the course.

I do agree with you ... it's the primping details like edging cart paths and striping fairways that have risen the most in percentage terms.  Any golf club worthy of its name twenty years ago would not have spent a dime on those things.  Today golfers seem to expect even the out of play areas to look perfect.

P.S.  Don't worry about cracking down on illegal immigration too much.  Most politicians know deep down that a lot of our economy is riding on their backs; they're just grandstanding for the high percentage of their constituents who don't understand how the system works.
« Last Edit: December 03, 2005, 01:28:54 PM by Tom_Doak »