CSGA- 2007 Tournament

CT State of the Game Information

Times Have Changed

In the golf industry “times are changing” is no longer accurate – “times have changed!”

Most clubs have not shifted with the change in demands. There are approximately thirty (30) million golfers in the United States and only five (5) million have USGA Handicaps. There has been no spike in ten years. This means that there are 25,000,000 golfers who do not belong to organized golf clubs.

The good news is that we have the potential to attract many of these golfers as new members. Why are these golfers not joining your club?

If you belong to a country club with all the amenities and your membership has the “steam” to pay for these services, then you can continue to operate as you have in the past. These top-tier clubs continue to prosper and many clubs in this category have full waiting lists and their future seems assured.

This is not the case for many other private clubs that are experiencing a decrease in membership and no waiting lists. These clubs lose money annually in their “full-service restaurant”. They seem to be in a downward spiral of losing money in the house because they are losing members, so they must raise dues, which causes them to lose more members. Today’s golfer does not have the time or desire to support the clubhouse as members have done in the past. The best manager and/or the greatest chef will not change this cycle. There is just too much competition from numerous fine-eating establishments. The social operations of most private clubs do not match the demands of today’s lifestyle.

Daily fee courses have actually grown in membership and rounds per year. These clubs are benefiting from the golfers who resign from their private clubs. They are playing fewer rounds than they would have in the past, but they are only paying for what they use and this is very attractive.

Private clubs need to supply the amenities that current membership demands, otherwise they will spend less time at the club and that means less revenue. If a golfer plays 20 rounds per year at an upscale daily fee course for $150 per round – he/she spends $3,000 per year and if a private club is asking $7,000 a year in dues and fees after an initiation fee, it is not a contest on what that golfer will do. Once you lose a dues-paying club member it could signal the beginning of the end.

The avid golfer does not want to grow the game. This member is doing no favor for the club. It is hard to convince this golfer that he should share his course with more players. But this is short sighted and is driving up the cost of membership. We need to reach out to women, minorities and other golfers that are currently not participating in organized golf. The impact will be a bigger golfing middle class, which will help the private-club culture.

Many ideas need to be explored. The members who are the biggest supporters of your club are usually down south for the winter. Some clubs have said this is 50 or 60 per cent of their membership. Should these clubs be open in the off-season? You may retain your key employees by rewarding them with this time-off. Other clubs do not serve dinners, but concentrate on lunch and casual dining after golf. Still other clubs have leased their kitchens out to caterers or restaurateurs, which seems to be the best solution if the deal is constructed right for both parties.

Clubs may want to offer memberships for off-peak playing times. Some clubs have really stepped-up their drives for younger golfers by offering greatly discounted dues for golfers aged 18 to 35. No initiation fees or food or cart minimums, but full playing privileges. Other clubs are building back their membership by offering packages of non-equity memberships, weekday only memberships and a two-year trial membership. No initiation fee or bond, but after two years they must decide to remain a member.

Reciprocal agreements between clubs should be formalized. Players who are members of clubs A or B or C are allowed to play either of the other two courses during off-peak times. The players agree to use carts or caddies and support the restaurant each time they play. This could be an attractive marketing plan.

Public clubs and Men and Women’s clubs must also shift with the times. Reach out to leagues and offer handicap-only memberships for the players that want USGA Handicaps, but do not have the time or desire to participate in a heavy tournament schedule.

If your club has other ideas we would love to hear them and spread the word. Please feel free to email anyone on the CSGA staff at http://www.csgalinks.org/staff.asp.

Download Article

Return to Home Page

CSGA