Tuesday, March 21, 2006

Save Golf, Let The Free Market Work

Talk to private golf club owners and you'll see that many are having problems, namely not enough members to support their clubs. Why? Because their old members are dying off and are not being replaced by younger ones. Add to this that there are lots of new courses being built every year, but the golf population is not growing. Every year as many golfers leave the game as take it up.

At some point in the past private golf was more affordable. Golfers got on waiting lists to get into the private clubs. When you've got waiting lists, free market thinking says you can go ahead and raise prices. Times have changed. Now many private clubs are offering 'deals' to entice new members, sometimes lowering initiation fees, annual dues or both. The problem is that they don't have a good way to market themselves.

I believe there is a solution to this problem and it's enabled by the internet. There are some very good programs for finding golf courses anywhere in the US. However, often details behind the courses are incomplete. Imagine one of these applications allowing clubs to post their membership costs. You could efficiently view the private club options in your area. I'm guessing membership requests would go up quickly for those priced right.

I see at least one problem to this solution. Many clubs are still snobbish, even when their numbers dwindle. They only want a 'certain type' of person to join. They want you to sweat your application process. I think economic reality is going to put an end to that type of approach fairly soon. Witness some of the newest and 'best-in-state' clubs that have sprung up in recent years. They are semi-private in that any one willing to pony up $100 or more can play. But they also offer straight forward memberships. Go their websites, see if the price of belonging suits you and you can be a member as soon as your check clears. And why shouldn't it be that simple. Why should anyone be deciding that someone else isn't fit to play for some reason other than being able to pay the cost?

For you companies supplying the golf directories, here's an opportunity. Grab it first and you may distance yourself from the crowd, doing clubs and golfers a service at the same time.

4 comments:

Anonymous said...

Supply and demand. The price goes up, demand goes down. They need to reduce the initial membership fees to get more members signed up, then get their monthly membership fees coming in.

Oh, I'm working on a site which will have such a golf course directory that you mentioned!

Anonymous said...

This is why I haven't become a member at a private course. The cost is just too exorbitant.

If you can find out the cost that is. Quite often you won't get told unless you apply for membership. It is all so secret.

I would basically have to play 3 weeks out of 4 to get my moneys worth, and I just don't have the time.

Perhaps more flexible membership options are the way to go. In Australia you have Full, 6 day (excluding Saturday) and 5 day (excluding weekends) memberships.

Why not be able to chose one or two day memberships, and you nominate the days. Obviously you would pay a premium for Saturdays, but get say Sunday cheaper and weekdays even cheaper still.

Erik J. Barzeski said...

I've created most of my country club's site and it does what it can to share information - about the course, about membership, etc.

mediaguru @ HookedOnGolfBlog.com said...

One club I play here in town has a $35,000 fee to become a member. Then it's your monthly dues, plus any assessments. My theory is that if you have $35K take it and play as many different courses as you can.