Membership Costs Up

[IanM]

It amazes me when some members moan about the compulsory card levy... it’s about the price of a coffee per week. Helps with cash flow. Reading some of the above justifies the retention of the joining fee at our place...we don’t attract groups who move around every year cos the subs are £25 less down the road. It’s also member owned , which of course is a different animal. It’s about sustainable golf, not a profit

 

[Robster59]

This is a recurring theme at this time of year. Subscriptions increase for a number of reasons. Cost of running the club, staff wages, course maintenance, equipment replacement, are just a few. There are lots of clubs suffering with falling memberships at the moment and whilst you may feel you get a better deal cost wise at another club you have to dig deeper and make sure that you understand what the clubs infrastructure is like and what their future plans are.

Ours is a members club but has a Board of Management for the running of the club. The interests of the club and its member are absolutely at the core of the work they do and every time the subs have to be increased it is always carefully considered and takes into account potential necessary investments for the coming year, estimated membership movements (in and out), visiting parties, etc. I have nothing but total admiration for the work they do on behalf of the club on a purely voluntary basis. They have always tried to keep the increases to minimal levels but if you don't keep investing in the club it goes backwards and so you lose more members and the downward spiral continues. If you don't make money year on year, then how can you invest back into the club?

Jumping ship may be an easy for some members but they have to remember the grass isn't always greener on the other side. I may perhaps pay a lower annual fee at another local club but that's not my ultimate driver.

 

[full_throttle]

just checked the website and our fees are increasing by £6 (six)

 

[Parmo]

Our new club has just put in planning permission for a £9 Million development, Eco lodges for play and stay, rebuild the clubhouse and turn the driving range into two tier. I would hazard a guess the subs will go up next year

 

[Deleted member 15344]

As long as the money is going towards the course and I can afford it then I will keep paying it

All my mates are there and for me it’s a great members club even if it’s not the best course in the area. The next course up I could join but it’s not got the same atmosphere even if the courses are superb

 

[Deleted Member 1156]

Our new club has just put in planning permission for a £9 Million development, Eco lodges for play and stay, rebuild the clubhouse and turn the driving range into two tier. I would hazard a guess the subs will go up next year

You reckon??

 

[HomerJSimpson]

I've not heard what the new prices are going to be next year but I'm sure there will be an increase. We are up to around £1650 but still competitive with our comparable neighbours. Given how much improvement has gone on with the course in the last few years with our new greenkeeper, I am happy to pay extra especially if this gets reinvested in new equipment. Is it value for money? Well that's hard to define but while I happy with the course, the clubhouse and the way the club is being run then I think it is. We are doing well in terms of acquiring new members and keeping hold of those we have.

 

[IanM]

Subs........ divide the cost by the approximate number of times you play. Does that figure as a green fee feel like a good deal? (plus the convenience of getting on at peak times, comps, handicapping, social etc)

That’s all you need to worry about.

 

[Wolf]

As long as the money is going towards the course and I can afford it then I will keep paying it

All my mates are there and for me it’s a great members club even if it’s not the best course in the area. The next course up I could join but it’s not got the same atmosphere even if the courses are superb

That right there is the deciding factor for me joining a new club when we relocate next week and what will keep me somewhere over and beyond whether its the better course or not. Atmosphere of club, its social aspect, inclusive for taking my family along for dinner or evening out and meeting like minded people. For me far more important than saying how amazing my course is or I play at a top club. I'd rather enjoy my golf and the people I'm with than play a top course where it feels socially forced.

 

[KenL]

Mine is going up £15, about 2.5%.

 

[Hobbit]

Members, understandably, look at the rate of inflation at around 2.5% when looking at % increase to their subs. But hang on a second, just what are the factors involved in running a golf club. Wages are controllable. Electricity, gas and water prices are relatively predictable and usually within the headline inflation rate.

But what has driven the rate of inflation up this year? Fuel prices. Fuel increases this year are running at 9%.

For those clubs that could, and some have, either frozen their subs or even dropped them, I do hope they have the metrics behind that to support it. Some clubs will need to do that and some clubs, very few, might have done it for that cuddly arm feeling. Imagine holding the fees for a few years whilst inflation rises, maybe doing so to stop an exodus of members. In a few years time they may well have to put up their fees by, say, 10%. Ouch! Creating a culture and an expectation of low or zero rises is dangerous and potentially self-harming in the long run.

Better a modest rise, maybe losing a few members but more than offsetting that by those that stay.

Making a profit? Most members club need to be very careful about profits and how they assign cash to future projects. Realising high profits without assigning the cash to a purchase or project will see a club lose its partial VAT exemption.

So if a club comes to you with an increase on or around the rate of inflation, or the balance sheet looks healthy, smile and enjoy your golf. Balancing the books at a golf club is like juggling with sticks of dynamite.