Membership cost increase

[Pants]

I understand that the long term plan at The Addington is exclusivity - to become one of the top venues for rich visitors. It is, after all, only a 5/10 min helicopter hop from London. The current members are dreading what the fees will be in the future and some are already assessing their alternatives.

 

[The Lion]

I understand that the long term plan at The Addington is exclusivity - to become one of the top venues for rich visitors. It is, after all, only a 5/10 min helicopter hop from London. The current members are dreading what the fees will be in the future and some are already assessing their alternatives.

That’s exactly my fear for the future of the game.

However we’re not exactly getting richer as a country, and mid term I just don’t see the numbers being there to sustain the high prices we’ve seen.

When the downturn comes, it’s going to be brutal and golf will be among the worst affected industries, as it always is sadly.

 

[federalexpress]

It’s an interesting point I was thinking about the other day.

So Kidderminster have put the fees up to £1475. It’s a nice parkland course, members club, usually very good condition.

My hometown is Shrewsbury, the Shrewsbury golf club is very similar in size and quality to kiddie, yet their fees are £1035. Kiddie and Shrewsbury are probably similar sized towns, I’d say Shrewsbury is probably a bit more affluent. So why such a big difference in running costs? Is it purely because Kidderminster is close to a couple of cities? Or do clubs have to pay rates and maybe the rates are higher in some areas than others?

I compared it to house prices. Pick a street in any town, you’ll have an average house price, for example, 250k. Then someone decides to sell and it goes up for 260. Then someone else sees that, puts theirs up for sale but for 270. Repeat ad infinitum.

It seems to me that kiddie have increased the fees from 1200 to 1475 because that’s what the local clubs charge.

We have a bit of that at my course. The board often say we are 'good value' compared to other similar clubs (we have the good fortune to have two courses) to justify recent big fee increases, 16% last year, 8% proposed for this. Of course, for a member, it's rather irrelevant. You are a member at your own club not somewhere else. Like you, I ask myself are we unique in needing these increases to meet higher costs? Are we offering better value to members than a decade ago? Probably not.

 

[Orikoru]

My club said they're fine with us paying subs by credit card, so I'm taking out a new card that's 0% interest for more than a year and paying it on that, then I'll just set a direct debit to pay it off over one year which works out around £130 a month. Cheaper that way than doing Fairway Credit where they add their own interest onto it.

 

[Springveldt]

My club said they're fine with us paying subs by credit card, so I'm taking out a new card that's 0% interest for more than a year and paying it on that, then I'll just set a direct debit to pay it off over one year which works out around £130 a month. Cheaper that way than doing Fairway Credit where they add their own interest onto it.

Do the club not let you pay by direct debit? So it's either all up front or take out Fairway Credit? Guess they want all the money up front at the start of the year but that's a tough one for members. My last place let you pay with 6 post dated cheques (yes, really) or 6 standing orders and the new place lets you pay 12 direct debits interest free.

 

[HomerJSimpson]

My club binned Fairway Credit and do it in house via DD or you can pay a one off payment by CC

 

[Orikoru]

Do the club not let you pay by direct debit? So it's either all up front or take out Fairway Credit? Guess they want all the money up front at the start of the year but that's a tough one for members. My last place let you pay with 6 post dated cheques (yes, really) or 6 standing orders and the new place lets you pay 12 direct debits interest free.

They only did it through Fairway Credit. Club arranges it for you and everything, but it is via FC so you have to pay interest on it. Actually, in the renewal letter (email) I got the other day, monthly credit wasn't mentioned so not sure if we're still with FC or not to be honest. I last used it the year before last.

Anyway, I'm glad they allow us to use a credit card as I wasn't sure that would be the case - the card I'm taking out is actually 0% for the first 21 months so I'll probably just use it again for the following year too.

 

[woofers]

My club said they're fine with us paying subs by credit card, so I'm taking out a new card that's 0% interest for more than a year and paying it on that, then I'll just set a direct debit to pay it off over one year which works out around £130 a month. Cheaper that way than doing Fairway Credit where they add their own interest onto it.

Or pay the minimum monthly amount to the credit card company and the rest into a savings account and then use the accumulated savings and interest to pay the credit card balance when due. You’ll have a bit extra to treat yourself.

 

[Orikoru]

Or pay the minimum monthly amount to the credit card company and the rest into a savings account and then use the accumulated savings and interest to pay the credit card balance when due. You’ll have a bit extra to treat yourself.

Don't have enough forethought for that. The savings account would soon be spent on sweets and treats I'm sure.

 

[woofers]

Don't have enough forethought for that. The savings account would soon be spent on sweets and treats I'm sure.

A fixed term regular saver account that you can’t touch will do the trick. At 4% £130 pm will get you around £35 after a year. Just need willpower and 10 minutes to set it up.

 

[sunshine]

My club said they're fine with us paying subs by credit card, so I'm taking out a new card that's 0% interest for more than a year and paying it on that, then I'll just set a direct debit to pay it off over one year which works out around £130 a month. Cheaper that way than doing Fairway Credit where they add their own interest onto it.

I don't know how much fairway credit charge, but your 0% interest credit card still has an admin fee of about 4% which is equivalent to interest.

 

[Orikoru]

I don't know how much fairway credit charge, but your 0% interest credit card still has an admin fee of about 4% which is equivalent to interest.

Pretty sure FC were charging more than that, plus this will probably help my credit score anyway.

 

[The Lion]

Do the club not let you pay by direct debit? So it's either all up front or take out Fairway Credit? Guess they want all the money up front at the start of the year but that's a tough one for members. My last place let you pay with 6 post dated cheques (yes, really) or 6 standing orders and the new place lets you pay 12 direct debits interest free.

It’s common for clubs now to use Fairway Credit or similar. For some it’s about encouraging the collection of full fees earlier in the year, for others because members have failed to pay their full subs on monthly direct debit, and for others a level of looking after self only.

 

[sunshine]

It’s common for clubs now to use Fairway Credit or similar. For some it’s about encouraging the collection of full fees earlier in the year, for others because members have failed to pay their full subs on monthly direct debit, and for others a level of greed.

Greed? How does a golf club make money from fairway credit? I'm not familiar with the business, does the club get commission for introducing a customer to the lender?

 

[The Lion]

Greed? How does a golf club make money from fairway credit? I'm not familiar with the business, does the club get commission for introducing a customer to the lender?

I was being harsh tbh, probably a poor choice of words. More that the club is no longer being helpful to members and so they now have to pay more. Have edited.

 

[Springveldt]

Greed? How does a golf club make money from fairway credit? I'm not familiar with the business, does the club get commission for introducing a customer to the lender?

From my understanding a club doesn’t make money from Fairway Credit but they do get the full membership fee straight away from FC.

It’s then up to FC to get the money plus interest from the member and their interest rates aren’t cheap.

I guess if a club has had issues with people not paying their full dues by DD or SO then FC would be the preferred option if members want instalments.

 

[sunshine]

I was being harsh tbh, probably a poor choice of words. More that the club is no longer being helpful to members and so they now have to pay more. Have edited.

Ok greed isn't the right word, but I agree with your point. The golf club doesn't need all the cash up front, costs are incurred over the course of the year, so it's unnecessary to demand members pay everything up front.

It seems I'm lucky in that my club collects fees monthly by direct debit in 10 installments. But then I live down south and the fees are heading towards £3k so maybe I'm not so lucky after all.

 

[The Lion]

Ok greed isn't the right word, but I agree with your point. The golf club doesn't need all the cash up front, costs are incurred over the course of the year, so it's unnecessary to demand members pay everything up front.

It seems I'm lucky in that my club collects fees monthly by direct debit in 10 installments. But then I live down south and the fees are heading towards £3k so maybe I'm not so lucky after all.

I do think long term these high fees will prove problematic. Today’s younger people can barely afford to rent a home, let alone buy, so how will they afford the crazy fees when they’re older? Something has to give.

 

[Barking_Mad]

£100 to £1200. Club lost £35k due to the weather. Investing in a swing studio.

 

[timd77]

I don't know how much fairway credit charge, but your 0% interest credit card still has an admin fee of about 4% which is equivalent to interest.

What’s the admin fee for? Assume he’s taken out an interest free purchase credit card rather than balance transfer? That’s what I do anyway and have never paid an admin fee.