In today’s market, operating a golf club is a high-priced biz.
Bringing in new members, hosting social events, and hosting corporate outings are all great ways for a golf club to bring in cash. Still, they also come with additional costs, and all too often, clubs put all of their efforts into attracting new customers through the front door while neglecting the revenue coming in through the back.
In this post, with guidance from GolfHolidaysDirect, we’re sharing potential costs for gold course upkeep.
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Necessary Things To Keep in Mind When Running A Golf Course
Gas, power, telecommunications, insurance, and water are all essential to running a golf club but are sometimes disregarded because they are “invisible” to the average golfer. When did you last look at these simple yet essential company expenses? Exists a plan for this? Is there in-house knowledge to guarantee that deals are fair for all parties involved (financially and otherwise)? In today’s demanding climate, golf clubs frequently need help finding the time to focus on how much they spend on these primary, critical costs.
Most golf courses simply accept the high cost of water bills as a necessary evil. Water authorities have been shown to frequently overcharge their business customers, with erroneous rates that are not necessarily suitable to the club’s needs, even though these charges are complex and vary from one water authority to the next. You can dispute the amount and receive a refund for up to six years after the original charge. All future cost savings are guaranteed to be permanent once secured.
If a golf club wanted to cut costs, what strategy might it use that wouldn’t cost them money?
A consultant who focuses on cutting essential operating costs is one option. Using the correct consulting might have huge repercussions for the club. Since the consultancies are compensated by their supplier network rather than the clubs, some do not charge for their services, and the clubs keep all of the savings they realize.
Consulting services have benefited clubs since they provide strong support and help clubs save money.
Most commonly, consultants will examine the primary operating costs of a club, including those for utilities, communications, water, and insurance. Clubs may rest easy when working with an independent consultancy because they will receive coverage, assistance, and terminations when necessary. They will acquire a whole-market solution by obtaining the finest and most appropriate rates and terms available.
With a signed letter of authorization and copies of the bills or relevant contract information for the services in question, the process can be carried out with minimal disruption (required under Data Protection Act). A thorough quote analysis or report outlining the current and renewal prices, in addition to the newly sourced rates, is conducted within the proper period for the review.
Once the documentation is finalized and the contracts are in place, the consultancy will ensure the handoff to the new contract goes over without a hitch on the scheduled day. If there are any inquiries or problems, a manager assigned specifically to assistance should be available to help. Free consultations and ongoing assistance are to be provided.
Golf Course Maintenance Estimated Expenses
It’s not a perk of the job to be a Super.
Supers do more than just normal maintenance work like mowing lawns and fixing leaky faucets; they also make comprehensive maintenance budgets that account for things like tools, fuel, and fungicides.
Different climates, competitiveness levels, and club types contribute to different answers.
Of course, every Super has his number memorized.
Maintenance’ Total Costs (By Type)
- Municipal: $621,190
- Semi-Private: $567,346
- Private: $1,083,647
- Daily Fee: $556,613
- Overall Average: $810,254
Costs For Labor (By Type)
- Municipal: $349,839
- Semi-Private: $312,476
- Private: $630,104
- Daily fee: $294,456
- Overall Average: $463,163
The Water Supply
While wells, ponds, streams, and rivers are all viable alternatives to municipal water supplies, the cost of water is still a major issue for many golf courses. 26% of courses, using 13% of their annual maintenance expenditure, buy water, according to a GCSAA survey. Naturally, water prices fluctuate widely around the country. The Southwest has the highest costs, at an average of $238,000 a year for courses, over double the national average of $107,000.
Costs For Equipment
Costs for machinery frequently vary with the size of their engines. More money needs to be spent on a machine because of a bigger engine. In 2023, the going rate for a rough mower will be around $100,000, fairway mowers at $80,000, a triplex mower for $50,000, and a fulling mower for $20,000. Despite the general notion that more horsepower equals a higher price, field sprayers can be as expensive as a rough mower if the tank is large enough and enough technology is included.
Do You Buy or Rent?
That is the million-dollar question when it comes to machinery meant for upkeep. Buchen claims that the frequency of such gadgets is the most important determining factor. Typical lease terms for commonplace machinery are between three and five years, after which they are replaced. The likes of aerators, vacuum cleaners, over seeders, and dump trucks are examples of non-essential but frequently-used equipment that is typically acquired. Several tools are needed to set up a new course from scratch. Buchen estimates that it takes a minimum of $2 million to properly equip a new private club.
Taking Care of the Details
Ball washers, tee markers, and flags are examples of course accessories that are not considered high costs, but it all adds up in the end. These goods cost schools an average of $4,000 per year.