ECONOMIC IMPACT,PRIVATE CLUBS,

AND SMALL MARKETS

Golf and the Economy

Private Clubs?

Memberships Fees are keyMainly for avid golfers 3,000 to 500,000 dollars a year to join14% of golfers in the U.S. belong to a private

club

Economy’s Impact

Last 5 years golf participation dropped around 11%

Supply and Demand? On average a private club lost between 5 and

15% percent of memberships. Lost on average of about 187,000 dollars

annuallyIn 2009 140 of the nation’s courses closed

and only 50 new opened up. The fewest since the 1980’s.

Financial Problems

Memberships lost Pro Shop losses Wages Slashed…Fewer Rounds Played (Chart)

Small Markets…?

Successfully the sameLower prices keep them coming backTipton Golf and Country Club

Memberships up by 5 percent. Increased restaurant sales

Club Loyalty

Small Private Course Operations

Board of Directors General Manager… Club House Staff Course Maintenance staff

Member involvement!!!

Expenses

Course MaintenanceClub House Staffing Course Events

Less Expenses means less losses No banquet halls, no pro shops

Revenue Generators and Fundraising

Large Market Clubs Banquet Halls Golf Outings Pro Shop Restaurant Bar

Small Market Clubs Restaurant Memberships Fundraising

Fundraising

Best for small town coursesLoyalty Bettering the community Golf Tournaments Example:

Irrigation Benefit Tipton, IA New Watering System for the entire course. Committee approval Raised 1.1 million

Marketing Strategy

Small Market School pride Brand Loyalty Limited choices and limited marketing

Large Market National Recognition Club House Player Recognition Community Marketing (Gated)

Hardships

Course Conditions Limited Resources

Financial Backing Large vs. Small

Pushing Through

Success Story Pleasant Valley Golf Course Small Town Course in Pennsylvania New Ownership - Zoltan Connor

Grew up on the course Remembered it for what it could be

Increased membership 10 percent in 1 year

Importance of Loyalty in Small Courses

Conclusion

Fundraising Advantage Loyalty drive small market courses Can succeed if they stay loyal