Worrying times ahead for golf clubs

[D-S]

If the 30k SILH’s club is looking to make to cover increased energy costs and this is typical then a normal club of 600 members would need 50 pounds per member to just cover this element of inflation before staff wages, machinery cost increases etc. etc. so 10% looks not too far out.

 

[Mel Smooth]

I pay £89 a month - if it was £100 I wouldn't quibble over it. The youth is free until he's 18 as well, so factor that in and £1200 a year would be solid value.

 

[clubchamp98]

It is in one of the most expensive areas of the country though

Yes .
But as stated it might suit some working golfers.
I think it’s a decent idea, but am judging on what I pay? £1300.

 

[fundy]

If it was after 11am midweek then 2pm at weekends I could see how that would appeal to plenty, but limiting it to 2pm all week feels too restrictive especially outside the summer months

 

[CliveW]

That was Tom Kerridge. I heard the interview, he spoke very well, he often does. Plain, stark facts, putting the increases into context.

That’s why he charges £87 for steak and chips???

 

[Lord Tyrion]

That’s why he charges £87 for steak and chips???

I did a quick check and he has 2 pubs and 5 restaurants. With those he covers different price points, different markets. If someone is okay to pay £87 for a main course, no one forces them to, then why wouldn't you?

I don't think his high end place is under threat, the examples he was giving related to regular pubs and restaurants.

 

[SwingsitlikeHogan]

As there has been some comment on the £1000 (actually a little under) for our new Introductory Membership. This is for period to renewal next 31st March and is pro rata annual subs and in addition full joining fee is payable. We are ~£1800/yr subs and same for joining fee. This option is aimed at those on the waiting list who are very keen to join ASAP, and are willing to commit in advance to taking up full membership next year.

We feel able to do this as we believe we have the course and tee time capacity (to be reviewed at renewal time) and we need to manage our waiting list as we can’t just expect prospective members to sit and wait - they can easy go elsewhere if they get fed up waiting and openings present elsewhere. The additional income will mitigate some of the impact of the power increases (as well as all other increased costs) on our funds and next years subs.

On @fundy comment. I’ve checked and non-weekend golf is actually any time and weekend golf is afternoon only (I don’t know first tee time for that). The new Introductory membership is exactly that - a ‘staging’ membership to full membership and not an ongoing membership. At renewal time the Introductory Members will each pay full subs to become full members - they have already paid the joining fee. Our expected turnover of members is about 30.

We then decide if we want or need to replenish the Introductory membership from the waiting list - and if we do we may decide to just do this replenishment at this time of year.

 

[SwingsitlikeHogan]

If the 30k SILH’s club is looking to make to cover increased energy costs and this is typical then a normal club of 600 members would need 50 pounds per member to just cover this element of inflation before staff wages, machinery cost increases etc. etc. so 10% looks not too far out.

My understanding is that at the moment the club is being quoted an increase of much more than £30k. We hope that government intervention reduces the quote and that the additional £30k will cover a good lump of the eventual increase.

 

[Albo]

At £1000 though?

Well that depends on what £1000 is versus the usual full 7 day option.
If I can’t use the course before 2pm anyway then assuming it’s a £200 reduction on the usual 7 day cost then it’s a good thing for me, I can count one 1 hand the number of times I’ve played before 2pm this year some of these have been 1330 or so, so pushing that back half an hour isn’t a real bother, the few times left if I had to pay guest rate at £20 a time for say 5 rounds, I’m still £100 better off and my golfing life hasn’t been impacted at all.
I’m not saying it would work for many but for me personally it would

 

[Blue in Munich]

At £1000 though?

For some perspective, an average public course round this way costs £30 per round midweek, £42 per round at weekends before noon and £35 per round after noon; so if you play every week apart from a 2 week annual holiday that's £1,500 for 5 day "membership", £2,100 for 7 day "membership" or £1,750 for 7 day restricted "membership". At an average public course. With limited changing facilities. And no socials. And limited catering. And no opportunity to pop in for a few holes practice without a further green fee.

My full unrestricted membership was £2,134 this year, including £100 on the bar card and a full size locker at a very good private member's club.

Unfortunately golf is not cheap around London & the Home Counties.

 

[sunshine]

As there has been some comment on the £1000 (actually a little under) for our new Introductory Membership. This is for period to renewal next 31st March and is pro rata annual subs and in addition full joining fee is payable. We are ~£1800/yr subs and same for joining fee. This option is aimed at those on the waiting list who are very keen to join ASAP, and are willing to commit in advance to taking up full membership next year.

We feel able to do this as we believe we have the course and tee time capacity (to be reviewed at renewal time) and we need to manage our waiting list as we can’t just expect prospective members to sit and wait - they can easy go elsewhere if they get fed up waiting and openings present elsewhere. The additional income will mitigate some of the impact of the power increases (as well as all other increased costs) on our funds and next years subs.

On @fundy comment. I’ve checked and non-weekend golf is actually any time and weekend golf is afternoon only (I don’t know first tee time for that). The new Introductory membership is exactly that - a ‘staging’ membership to full membership and not an ongoing membership. At renewal time the Introductory Members will each pay full subs to become full members - they have already paid the joining fee. Our expected turnover of members is about 30.

We then decide if we want or need to replenish the Introductory membership from the waiting list - and if we do we may decide to just do this replenishment at this time of year.

This is a smart idea to retain the people on the waiting list. Your board is obviously looking ahead and trying to avoid future shocks, good on them.

 

[sunshine]

I've just left my club and was just about to sign on the dotted line for another when they informed me that they are increasing the rates by 20%.!!!!! ?. Pen was placed down and we left. 45 people have left the club since the announcement losing 45k of revenue for the club (on a 5 day). If my maths is correct that means they need 225 members to fill the void before they make a profit.
They must be confident to make such increase

The concept of making a profit indicates that this is a proprietary course you were looking to join. 20%, from £1,000 to £1,200, is a big hike and hard to justify in one go unless the subs had been frozen for several years previously.
On the flip-side, if this was a private members club then an increase of £3.80 per week to cover higher costs would probably be acceptable to the majority of members, given the current economy.

 

[Dando]

For some perspective, an average public course round this way costs £30 per round midweek, £42 per round at weekends before noon and £35 per round after noon; so if you play every week apart from a 2 week annual holiday that's £1,500 for 5 day "membership", £2,100 for 7 day "membership" or £1,750 for 7 day restricted "membership". At an average public course. With limited changing facilities. And no socials. And limited catering. And no opportunity to pop in for a few holes practice without a further green fee.

My full unrestricted membership was £2,134 this year, including £100 on the bar card and a full size locker at a very good private member's club.

Unfortunately golf is not cheap around London & the Home Counties.

the fee at your place Is well worth it

 

[Bdill93]

the fee at your place Is well worth it

Even still - Golf in the south does not come cheap does it!? My full membership is £420 I could even join the best club in Worcester as well and still have change!

 

[Blue in Munich]

the fee at your place Is well worth it

It certainly is mate.

 

[D-S]

I've just left my club and was just about to sign on the dotted line for another when they informed me that they are increasing the rates by 20%.!!!!! ?. Pen was placed down and we left. 45 people have left the club since the announcement losing 45k of revenue for the club (on a 5 day). If my maths is correct that means they need 225 members to fill the void before they make a profit.
They must be confident to make such increase

Maybe they are confident as they believe that all clubs are going to have to make similar increases. Obviously clubs with more staff will be more affected in absolute terms by wage increases but course material and machinery hikes as well as energy and fuel cost jumps are likely to be similar across the board and the % increase on 420 pound a year subs maybe very high unless you have a massive membership.

 

[Banchory Buddha]

Maybe they are confident as they believe that all clubs are going to have to make similar increases. Obviously clubs with more staff will be more affected in absolute terms by wage increases but course material and machinery hikes as well as energy and fuel cost jumps are likely to be similar across the board and the % increase on 420 pound a year subs maybe very high unless you have a massive membership.

Yeah this. I don't think there's any doubt increases will be quite a bit eevrywhere, perhaps only yhose clubs without a clubhouse will be able to keep their rise reasonable, but there will almost certainly still be a rise.

 

[D-S]

I wonder if it might be sensible for clubs to put an inflation linked increase plus a levy to cover the energy cost increase. This could be done if there is a reasonable chance of gas and electricity prices returning closer to long term levels by 2024.

 

[hovis]

I wonder if it might be sensible for clubs to put an inflation linked increase plus a levy to cover the energy cost increase. This could be done if there is a reasonable chance of gas and electricity prices returning closer to long term levels by 2024.

Good point because you can bet your ass they won't put prices down when energy prices drop

 

[Red devil]

It's true that golf clubs along with multiple other businesses face considerable challenges this next 12months, government help notwithstanding.
Will some close? Possibly. Will some struggle? Probably. But without knowing the financial circumstances of every single golf club member its very difficult to predict.
Golf clubs have a high percentage of older demographic in receipt of work and state pensions and/or mortgages paid off. This crisis might pass them by, or not affect them as much.
Newcomers attracted to golf in Covid times may drift away, having other more important pressures eg. End of fix rates mortgage deal a doubling of percentage on a new deal could easily wipe out golf club subscriptions as could domestic energy costs.
It's all an unknown. Personally I think we could return to pre-covid figures regarding membership and golf clubs will need to be pro active in retaining their present membership and trying to encourage new