The Kid Golfer

How much do golf courses make

I have not worked in the golf industry for many years, but I did work at a mid-tier public course in the mid-Atlantic region that also sold memberships during the boom years. For the few years I was there, we were turning out 35000 to 40000 rounds every year, taking into account comps and other visitors.

This totaled to around 2 million in revenue on average for the few years I was there, including memberships. Before costs, the bar/grill generated around $400, 000 per year. On the other hand, the maintenance budget was around 550 thousand dollars, the head pro/gm made approximately 110 thousand dollars, and the rest of the crew, including food and beverage, probably totaled to another 300 thousand dollars.

Golf courses price varies a lot depending on Factors

Regiongolf courses prices vary greatly
Architecture named architect courses typically draw more attention
WaterIt is essential for plants to have access to water in order to grow.
LocationThe importance of being close to golfer and demographic concentrations cannot be overstated.
Use of the landLand usage is taxed in a variety of ways depending on where you live.
Course layout and difficultytoo easy
Course conditionsIt can play a significant role in overall enjoyment.
ServicesFull range of services

Then there are all of the taxes and insurance costs, as well as an entertainment tax, which is whatever the heck it is. The golf cart lease program accounted for a significant portion of the budget.

Expenses of Golf Cources

PeopleIt is impossible to operate a golf course without employees.
These individuals are often handsomely compensated.
General Manager Management (Golf Director, Food and Beverage Director, Sales/Membership Director, Head Groundskeeper, and so on) consists of the following positions:
Hourly personnel in the back office (accounting, purchasing, accounts receivable, accounts payable, payroll, and so forth).
Pro Shop Food and Beverage Grounds/Agriculture
WaterThis is a major issue. Golf courses that own their own water sources have a number of distinct advantages.
Land / Course Equipment and MaintenanceSeed
Cart Lease Programs

All of the expenditures are associated with the workplace and technology. All of the expenditures associated with food and beverage…. Basically, once everything was said and done, the restaurant made around $200,000 in earnings, including food and beverage.

12 Revenue Centres for Golf Courses

  1. Special Programs
  2. Youth, Seniors, etc.
  3. apparel, equipment, etc.
  4. Lessons
  5. Food and Beverage
  6. Merchandising
  7. Memberships
  8. Daily Green Fees
  9. Tournaments
  10. Weddings
  11. League play
  12. Cart Rentals

Now, this is a terribly run course and restaurant, with incredible waste theft occurring on the premises. This occurred between 2001 and 2007, which was a prosperous period for the golf industry.

A fascinating thing I discovered was how the course itself (design, shade, sun drainage, and useful space, as well as the appropriate grass for the location) can have such a significant influence on the bottom line.

I wish I had known about this sooner. Wasting man-hours, water, chemicals, and other resources just because something appears to be attractive does not imply that it is required.

Conclusion: how much do golf courses make

It’s not an easy industry to be in, and a lot of it is dependent on the business model that is chosen, market strategy and differences, and how all of that relates to the demographics of golfers in the region, among other factors.

The honest fact is that many golf courses won’t operate indefinitely without competitive advantages. A terrible season may wreck your financials, and put your firm at peril.

Many courses are turning to golf management corporations to handle their operations. Billy Casper is an example of the sort of firm.

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