Fleecing People

[Rick Sides]

I have been watching courses gouging people this week in Arizona this week with the Waste Management charging  double and triple normal rates. Before anyone says it’s the business I get it that people will pay a lot.

[cary lichtenstein]

Hotels and airlines do it all the time.

[Daryl David]

Sorry, I know you said you didn’t want to hear this but…it  doesn’t stop until people say they won’t pay. As long as they do, that’s the price.

[Rick Sides]

Agree Cary but I played Oakmont in a charity for less than Tree Farm

[Rick Sides]

Good point Daryl

[Dan_Callahan]

There's a reason why golf was in steady decline prior to covid. Eventually those same issues start to eat away at it again.

[Adam_Messix]

Rick,   


Most of the clubs in the Augusta area, including Augusta CC and Palmetto GC do this during Masters week.   I don't have any issue with them or The Tree Farm doing it as it makes total economic sense.

[Rick Sides]

Adam I guess you’re right . If people are willing to overpay that’s up to them.

[JohnVDB]

I’m guessing green fees are very high in Las Vegas this week also.

[John Handley]

Tree Farm built Masters Week into their business model. 


How much do you think Uber's will be this weekend in Vegas?  Hotel rooms?  Etc.  Golf is no different in that regard.  If you don't want to pay it, don't.  Find a buddy who is a member somewhere and pay a regular guest fee.  Or if you want a deal, go play Troon North in June.

[Matt Schoolfield]

Dynamic pricing is generally fine so long as the sellers are not colluding. When courses have an incentive to undercut each other, it maximizes the producer AND consumer surplus.


If however, the the producers collude to set minimum prices, they can capture the consumer surplus… which is a problem. If dynamic pricing extends to the point where it is offering different prices to different individuals based on ability to pay, it also begins to capture the consumer surplus, and is a real concern.


Simply charging more when demand goes up doesn’t actually veer into anti-competitive behavior.

[Zac Blair]

Rick -
First of all I saw the original title and certainly don’t appreciate the use of that word in regards to this one week of the year with the biggest golf tournament in the world 30 minutes down the road and us giving visitors the ability to come visit our Club. The market for the this obviously exists and sorry you don’t agree with it but it’s always been a part of our business model.


It’s something I always viewed as a win win … the members have put a lot of money up to be involved with this club & there are others who want the opportunity to see and play the course that one week … so it’s a fine line to walk in terms of pricing that week. I’ve always loved the idea of making it accessible albeit at a higher than normal rate so visitors can get setup.

[Jerry Kluger]

I remember going to Sage Valley a few years ago a week or two before the Masters and the golf shop had an incredible amount of inventory of golf shirts and I was told it was because non-members could play the course during Masters week at a very high price and they would not hesitate to spend a large amount of money in the golf shop.  Nobody is putting a gun to their head and if they want to spend the money so be it. Often it is a business hosting some clients to go to the tournament and play some golf.  I am still waiting for my invitation.

[Jeff Evagues]

Well, its supposed to rain most of the week. We'll see how much golf the visitors play. I do play Troon North in July.

[Rick Sides]

Zack my apologies about the title . I do applaud you for building a great course . Sounds like the membership is doing very well also . As much as every business has the right to set prices, I just thought If non members played a day the course was open allowing some money to benefit those in need would be kind especially given the hefty price tag of play . Parts of the South Carolina area is very indigent and a few dollars would help those in need . I do wish you luck with the outing .

[John Mayhugh]

Rick,
Three thoughts:

• My guess is that there will be members whose per round cost is higher than the $700 (including caddie) that you find offensive.
• If one week of outside revenue was intended as part of the club's business plan, why do you think they need to donate those extra funds?
• You should steer clear of Louisville Kentucky the first weekend in May.

[Mike Wagner]

I have been watching courses gouging people this week in Arizona this week with the Waste Management charging  double and triple normal rates. Before anyone says it’s the business I get it that people will pay a lot.

Instead of asking basic economics 101 questions, maybe you should be asking why a loaf of bread costs twice as much as it did just a few short years ago. Now that's a lot better definition of "fleecing."

[Mark Stewart]

There's a reason why golf was in steady decline prior to covid. Eventually those same issues start to eat away at it again.

I would argue that one reason golf was in decline was it's reluctance to adopt modern business practices such as dynamic pricing and prepayment.

[Sean_A]

There's a reason why golf was in steady decline prior to covid. Eventually those same issues start to eat away at it again.

Golf was in steady decline before Covid? If that is the case golf must be dead now. It costs a ton more to play and courses are busy.


Ciao

[Ian Mackenzie]

Dynamic or "Surge pricing" occurs everywhere.

Uber, airlines and restaurants do it and even MLB clubs like the Cubs charge MUCH more when the Cardinals are in town for a 7:05 Saturday game than for a Tuesday 1:20 game vs. the Padres.

The answer to the obvious question of "Why" (does this happen) is the same answer to the age-old question: Why do dogs lick their balls?

Because they can....

[Tim_Weiman]

Rick -
First of all I saw the original title and certainly don’t appreciate the use of that word in regards to this one week of the year with the biggest golf tournament in the world 30 minutes down the road and us giving visitors the ability to come visit our Club. The market for the this obviously exists and sorry you don’t agree with it but it’s always been a part of our business model.


It’s something I always viewed as a win win … the members have put a lot of money up to be involved with this club & there are others who want the opportunity to see and play the course that one week … so it’s a fine line to walk in terms of pricing that week. I’ve always loved the idea of making it accessible albeit at a higher than normal rate so visitors can get setup.

Zac,


No need to apologize or even explain. Apparently Palmetto has opened up the club
to visitors during Masters week for many years and over at Old Barnwell we will also have a Master’s week deal.


It certainly makes sense for national clubs in the Augusta area.

[SB]

Timing is everything.  You can watch people play golf on the 18th hole for free (or buy a beer for $10) at Pebble Beach 360 days a year.  But during a US Open, a clubhouse pass costs what, a couple grand?

[Cal Carlisle]

We all have our line in the sand. I don't find it offensive. I'm glad members are willing to open their club to outsiders for a week, or so. Sounds like a win/win for everyone.

[Kevin Stark]

If you can get a sizeable chunk of revenue for one weeks' worth of public play, it would be insane to not capitalize on that. Our club in the Chicago area did something similar for the week of the BMW last year. It suited the membership just fine.

[Tim Martin]

Rick -
First of all I saw the original title and certainly don’t appreciate the use of that word in regards to this one week of the year with the biggest golf tournament in the world 30 minutes down the road and us giving visitors the ability to come visit our Club. The market for the this obviously exists and sorry you don’t agree with it but it’s always been a part of our business model.


It’s something I always viewed as a win win … the members have put a lot of money up to be involved with this club & there are others who want the opportunity to see and play the course that one week … so it’s a fine line to walk in terms of pricing that week. I’ve always loved the idea of making it accessible albeit at a higher than normal rate so visitors can get setup.

Zac,


No need to apologize or even explain. Apparently Palmetto has opened up the club
to visitors during Masters week for many years and over at Old Barnwell we will also have a Master’s week deal.


It certainly makes sense for national clubs in the Augusta area.

Both Palmetto and Augusta CC have opened their doors to non members during the tooniment for a number of years and have Masters week rates in effect for unaccompanied play. Aiken GC although public takes advantage of the demand by imposing Masters week rates as well.