D-S
Well-known member
I am sure this will happen at the same time as the negotiated pay decreases come through and the CPI and the RPI have been negative for a few months.
Membership cost increase
- Thread starter Genu9
- Start date
GB72
Money List Winner
The things we are talking about would not be impacted by the CPI or RP1, raw materials and chemicals, industrial machinary, energy prices, do go up and down. As I mentioned, I am not seeing the 10-20% salary increases and so, yes, in real terms, the costs would conceivably go down and that could well justify reduction in membership fees to reflect the reduced costs in place.
D-S
Well-known member
Labour cost is an important part of any golf club budget, as it is a key component part of all other cost, unless this reduces the subs cannot reduce. I would be very surprised if clubs aren’t increasing wages by 5% plus - I would also be very surprised if they introduce wage cuts in years to come.
Machinery prices are very unlikely to reduce, do you foresee a crash in the price of new cars in the short-term?
When was the last time you saw prices of a lot of products reduce across the board? If they do, including energy, this would of course be reflected in the standard measures of inflation.
My company buys in raw materials including some chemicals. These have been shooting up in price since covid, simply because demand rose and mfrs could get away with it. Chemical companies have been doing as well as oil & gas in the last 3 years, massive profits. Those prices have jumped again this year, due to the increase in energy costs, most chemicals have a degree of energy intensity needed to produce them. Unless major new companies go into the market these prices will not drop any time soon as their is no incentive for them to drop. How many companies will voluntarily drop from making a 300% margin to a 100% margin? They can still sell them at these prices so they will.
What I am seeing in my industry will be matched, as many have said already, in the fertilisers, chemicals, etc that all golf clubs need. These prices will not be dropping any time soon, not by a long way.
What I am seeing in my industry will be matched, as many have said already, in the fertilisers, chemicals, etc that all golf clubs need. These prices will not be dropping any time soon, not by a long way.
Captain_Black.
Well-known member
Whilst there is no doubt some cost have gone silly high, mainly fuel / fertiliser ect.
Undoubtedly there is quite a bit of opportunistic profiteering going on.
I was in a golf shop the other day & spotted a lightweight golf bag, just what I needed for a foreign golf holiday next year, nice bag but not worth £169.00.
Same with the golf jumpers, nice jumpers but not at £140 a pop.
So I ordered a really nice lightweight bag from Amazon for £39.99 & a nice jumper for £29.99
Both great quality & just what I was looking for.
sunshine
Well-known member
Also, many chemicals are derived from oil so costs heavily impacted by price of crude.
fundy
Ryder Cup Winner
People keep quoting oil price, i assume this the same crude oil price which is now the same as it was 12 mths ago and less than 15% higher than it was in early 2019. Not sure that justifies the rises some are talking about
sunshine
Well-known member
Good point, but oil went up beyond $100 in March when the crisis in Ukraine kicked off and has only eased below $100 in the last couple of months. Products being sold now were probably manufactured when oil price was higher, there is always a lagging effect.
Oddsocks
Ryder Cup Winner
The big factor here is whether the club is increasing to the full need or simply reducing the impact with a partial increase which effectively will eat into its reserves.
If it’s the later then fees would need to stay higher despite reductions simply to recoup the dent in the bank account.
fundy
Ryder Cup Winner
The worry is when that lagging effect is permanent, and as a cynic I expect a large chunk of this one will be
DeanoMK
Club Champion
Not quite that person, but the same group. Very, very odd.
Golfnut1957
Newbie
This is what our club is doing. The subs aren't due until March, we'll receive the renewal in February, however I spoke with one of the directors two weeks ago and mentioned the potential increase, he spoke of money put aside for other major improvements which will now be used to offset the inflation increases.
I have no idea what to expect.
D-S
Well-known member
First increases being posted now for 2024 and, round this way, it looks as if the clubs who only increased by 5% or so last year are having to play catch up with a couple having to raise subs by over 10%. It'll be interesting to see what a handful of clubs who did not increase at all last year will do.
JT.
Active member
My club had a 10% increase last year, have just had a 6% increase for this year.
sunshine
Well-known member
7.5% increase for 2024
Imurg
The Grinder Of Pars (Semi Crocked)
Not heard yet but I suspect we'll be similar.
Our constitution limits rise to inflation +1% with the figure taken from September or October
No Increase this year at Nairn, but they have put the Bar card up to £100
Banchory Buddha
Well-known member
Good, wish more clubs would do the same.
nickjdavis
Head Pro
£330 increase which works out as a 36% increase for 7 day membership
£500 joining fee introduced for new members (was planned last year but never got implemented)
"Early adoption" discount reduces full membership by £120 if you renew early (between Jan 1st and the actual renewal date of 31st March)...this however is limited to the first 100 folk to renew.
New membership categories for under 25's and under 17's (no joining fee)
We have held our prices ridiculously low for years...I think when i first joined 23 years ago it was something like £650....last year I paid £815 (was supposed to be £920 but early renewers (not limited like this year) got a discount).
£500 joining fee introduced for new members (was planned last year but never got implemented)
"Early adoption" discount reduces full membership by £120 if you renew early (between Jan 1st and the actual renewal date of 31st March)...this however is limited to the first 100 folk to renew.
New membership categories for under 25's and under 17's (no joining fee)
We have held our prices ridiculously low for years...I think when i first joined 23 years ago it was something like £650....last year I paid £815 (was supposed to be £920 but early renewers (not limited like this year) got a discount).
D-S
Well-known member
That’s interesting, however even if your subs have been kept low for many years it does raise the question as to why a 36% income increase might be needed. I assume to catch up on all the issues that the underfunding has caused?
