Hmmm. Interesting question. I am an entry level (fully) private golf club. I have a terrific course, active golf program, good pace of play and nice social activities but no pool or tennis (to speak of). I also have a great bunch of Members who are just good people to hang around with and play golf.
[size=78%] [/size][size=78%]Initiation fees and high dues require fancy clubhouses, pool, tennis, athletic...and even then, that model has largely failed in Atlanta.[/size]The clubs that used to charge $25-35,000 and $500 per month are now largely bankrupt and owned by someone else. Atlanta still is a "no to very low initiation fee market" and as a result dues/mandatory monthly fees have gone through the roof:
Horseshoe Bend--Bankrupt and now after lots of improvements and a new owner its $5,000 and about $700 per month
CCof the South--bankrupt, now owned by ClubCorp with dues /monthlies of $733
Echelon--bankrupt, new owner
Alpahretta Athletic Club--bankrupt, new owner
The Manor--bankrupt, new owner??
The Standard Club and St. Ives have survived but with much lower IFs and higher dues and assessments. CC of Roswell also has survived but they too have had assessments and lower IFs. I think all are in the $600-$700 per month in mandatory montly fees.
At the high end, Peachtree, Capital City, Piedmont & Cherokee CC have been the only ones to maintain or increase IFs this past decade. Hawk's Rdige which was once $90,000 to join is maybe $5,000 now and even the Atlanta Athletic Club, which has recently hosted majors and has the most incredible facility you can imagine, has had to lower their IF and do "deals" like 10 year interest free "financing" to attract members. Even then, they are contemplating another fairly large assessment for a $35MM capital plan over 15 years!!??
So, the Atlanta initiation fee market stinks from an operator's perspective
I am $500 to join and my Full Family Golf (most expensive) is $375 with no assessments (in 42 years), no minimums, range and all service charges included. My model is very different than almost all my neighbors. I have to stay more active and do 36,000 rounds to their 22,000 on average. I have actually lowered my caps--another result of the Great Recession is having fewer dues paying members but those who stay play more golf. So, fewer members but still the same number of rounds--again not ideal as an operator. My golf cap used to be 475 full golf and 125 senior golf (weekday golf only). Now I lowered my cap to 450 and 115 in order to keep the course from getting too crowded and beat up. (I need about twenty more full members and have a small waiting list for my senior category. I also have 127 social members).
I never allowed summer outings (June-August) to protect the course. Our maintenance budget is about $800,000 (not like some of our fancier neighbors) but I feel we have kept the course is very good condition over the last ten years (or since our remodel in 2006).
I am a golfer and we are a family run place--my mom still works three days a week and I am here every day so I am not paying a management company or GM to operate my business and we have very little debt. (In the late 2000's lots of clubs took on debt building mammoth amenities and clubhouses and it busted them--debt kills
[size=78%]). I hate big clubhouses--unless you can pay cash for them, I just don't think you can sell enough hamburgers to pay for them. [/size]We are active but have never used a lottery system for tee times--first call, first serve and it works well. Pace is very good with weekends getting around in 4 hours and 15 minutes even if you tee off at noon. (If your group tees off before 10:00 on a weekend and you finish in more than 4 hors 10 minutes and more than 15 minutes behind the group in front of you, you have to play after 10:00 the next weekend!)
I serve a need in a market that is either public golf or expensive private golf. My customer is mainly interested in golf and social. He/she doesn't want or need fancy, a pool, tennis or a gym. For about half the price they can get "just golf, fun and food" and that fills a need.
As for comprimises, we don;t have a huge budget but our tees are Diamond ZOysia, bermuda fairways, cool bunkers (yes all lined billy bunkers
), we had A-1/A-4 bent now going to TE, fans and the greens that were built with a sub-air system. By focusing on the golf I think we provided an excellent golf experience especially at our fees structure.
Again, we are mainly a golf club and as I have said other places: golf is fine, it is the country club business that needs to wake up!
Chris, thanks for sharing your thoughts in so much detail - great information and best wishes through the transition.
Apologies for the slightly OT question but I couldn't resist...it sounds like you prefer bent and would keep bent if not for the very substantial play your course gets vs. other privates in the area. I'm curious how you do the cost-benefit analysis of 'capping membership / raising dues / having improved conditions' vs. your current model, which sounds very, very successful but may lead to compromises on the golf course?