The golf facilities in Germany offer a beautiful backdrop and a unique experience for golfers and visitors. Nevertheless many golf facilities struggle to exploit their full revenue potential. With the rising demands from year to year, however, it becomes all the more important to know all the revenue potentials at your own facility.
Golf facilities leave money lying on the street. Fortunately not in the literal sense. Nevertheless we in German golf clubs are often still far from a well-structured sales operation. And this is exactly where this article comes in. Note: the figures refer to the market in Germany.
Whether a manager of a golf club looking for new ideas to boost their business, or an employee committed to improving revenue at the golf course, this article offers you valuable insights and advice that can help you exploit the revenue potential of your golf club.
Revenue levers at a glance
- Raise token and driving-range prices fairly
- Rent out high-quality rental clubs
- Offer snacks and drinks right at the range
- Win advertising space and sponsors at the range
Dare to raise the prices
One of the most effective ways to increase a golf club's revenue is to dare price increases. Even if it seems off-putting at first glance, because we fear that members and customers migrate away, it is important to convey the true value of your own services and offers.
To underline the quality and exclusivity of your golf club, a moderate price increase can even be helpful. Before you adjust your prices, you should make sure that you offer your customers added value. Whether through improved facilities, additional services or an improved customer experience.
If an improvement of the offer is not possible, that is no show-stopper, though. Members and guests know what inflation is and that it also affects the prices of a golf facility.
What do your tokens cost?
An important point of contact when it comes to the question of revenue potentials is the driving range of a golf facility. Tokens are the usual currency for buying balls at the driving range. The pricing can affect the visitor numbers and the revenue. In Germany the average price of a token for around 30 balls is about €3-4. Although many facilities still go to market for €1-2 for 25 balls.
The price for a token is, however, already at €5 to €7 for around 30 balls in many holiday destinations and at particularly strongly demanded golf facilities. And yet at these places the driving range is full.
This development shows that there is room for price adjustments. This applies especially when the golf facility is in a popular region or near high-quality accommodation.
Of course it can now be argued that this applies "only" to holiday facilities. The fact is that we cannot know this for 100%. But what we do know is that anyone who does not raise their prices to a fair value will never find out.
Before you raise the prices for the tokens, you should, however, make sure that the price-performance ratio is right. What I mean by that?
Invest, for example, in the maintenance of the driving range, provide high-quality practice balls or offer additional amenities such as free club cleaning.
This way you ensure that your customers are satisfied despite the higher prices and gladly come back. Most of the time price increases can be argued well with minimal service adjustments.
Especially when you are at a tourist facility where visitors play golf several times a week, further options present themselves.
In any case give the visitors the option to return unused tokens for a refund. This way you can sell 10 tokens straight away to the golfers who maybe only wanted to take 2. And once the tokens are already in the bag, the probability that they get used up is also much higher.
Rent out rental clubs for a fee
A lucrative business for operators of golf facilities can be the rental of golf clubs. Prices of €25 per day or €100 per week are not unrealistic figures when it comes to renting out high-quality golf club sets. Whether such an offer succeeds, however, depends strongly on how the golf facility is located. Tourist destinations and golf facilities with an attached hotel have better chances here. Pure members' clubs that take no green-fee guests are less promising.
Cooperation with club manufacturers can also lead to attractive deals: these have a great interest in as many golfers as possible trying out their clubs. Offering rental clubs of renowned brands can not only help to improve the image of the golf facility but also contribute to increasing revenue through additional rental income.
For operators of golf facilities who decide on renting out rental clubs, the regular maintenance and renewal of the club stock is important. But here too special agreements with the club manufacturers are possible. There are also providers on the market who offer leasing of clubs.
Snacks at the driving range
It is not unusual for golf course operators to neglect the sale of drinks and snacks at the driving range. This applies especially when there is also a clubhouse that in principle offers drinks or food. Yet here there is great potential for generating additional income and improving the customer experience.
To get the greatest possible benefit from the sale of drinks and snacks at the driving range, operators of golf facilities should make sure that the drinks and snacks are easily accessible. The vending machines should therefore not be too hidden but placed well visibly.
A small kiosk or sales stand can be set up right at the driving range if the clubhouse is far away. Alternatively, drink and snack vending machines can be set up. These have to be accessible around the clock. A connection to the golf management systems such as PC Caddie or Albatros for payment would be desirable.
The offer should contain a selection of drinks and snacks according to the needs and preferences of the customers. This can include cold and warm drinks, high-energy snacks, healthy options and even regional specialities.
To increase the attractiveness of the offer, special packages can be put together that combine practice balls with drinks and snacks. These offers are particularly attractive for customers who want to spend more time at the driving range. They don't have to go to the clubhouse separately to refresh themselves.
An exciting idea on this I once saw in Portugal. The expensive branded water was sold here together with a limited golf ball. The golf ball was nothing special, but the printed logo a special edition.
Seasonal conditions can be used for special offers and campaigns. So in summer, for example, refreshing cold drinks or ice cream can be offered. In winter warm drinks and soups are particularly popular. The availability of drinks and snacks at the driving range should be actively advertised, for example through signs, the website or the newsletter.
Sponsors and advertising partners at the driving range
Revenue up. That should be the goal of golf facility operators. A further way to generate additional income and at the same time increase the attractiveness of the facility is cooperation with local companies or brands that want to advertise at the driving range.
Advertising space on tee mats or target markers are visible presentation opportunities for potential advertising partners and sponsors while creating a professional atmosphere at the driving range.
Likewise, to increase the awareness of the golf facility and the advertising partners, tailor-made events and tournaments can be organised in cooperation with sponsors. Although this point already becomes quite staff- and therefore cost-intensive again.
These events can range from small, in-house tournaments to larger, public events that are attractive both for golfers and for spectators. Such events offer a win-win situation in which the golf facility benefits from additional income through entry fees and catering and the sponsors from an increase in brand presence and possibly the gaining of new customers.
Golf facility operators should actively approach local companies and show them the advantages of a cooperation in order to build successful partnerships. Ideally this task is done by the golf facility's sales manager. Why it is so important to employ a sales manager at golf facilities I have already made clear elsewhere on the blog. Responding to the specific needs and goals of potential partners as well as the joint development of creative and effective advertising strategies are of decisive importance here.
Through such partnerships golf facilities can increase their revenue, raise the attractiveness of the driving range and at the same time build valuable local business relationships.
A larger cooperation with a company to which the "premium package" is sold can bring in between €5,000 and €30,000 per year.
Holiday trips for member retention and member acquisition
The organisation of golf trips can be an effective means for golf clubs to increase revenue indirectly and to strengthen member retention. Even if these trips don't lead directly to income, they have a considerable influence on the satisfaction and loyalty of the golf course's members.
A well-known golf manager and I gave an interesting talk on exactly this topic a few years ago at one of the GMVD conferences.
Golf trips enable members to get to know new golf courses together, test their skill in a different environment and enjoy the social aspects of golf. These positive experiences can lead to a stronger attachment of the members to their home club. Especially when these holiday trips are organised regularly. This approach can secure continuous income in the long run.
Moreover, such trips can also be used as a marketing instrument to draw the attention of golfers from neighbouring clubs to your own facility. If the participants are enthusiastic about the golf trips and share their experiences with friends and acquaintances, this can awaken the interest of other golfers who are perhaps thinking about changing their home club. This can lead to the golf club gaining new members, which in turn can lead to an increase in income.
To organise golf trips successfully, golf facility operators should choose attractive destinations. These should be appealing both in terms of the golf course and the supporting programme. Furthermore it is important to plan the trips carefully. The aim is to offer the members an unforgettable experience.
Further options for increasing revenue at a golf facility
Did you like this article and are you interested in further tips and tricks for increasing revenue at your golf facility? Then leave a comment to let me know. With enough feedback and interest, part 2 will follow.
Have you yourself developed a few great ideas with which golf facilities can sustainably increase their revenue? Then let us know in the comments under this article too.
