We are old enough to remember when a Cheeseburger was $12 at the local pub. Then about 5 years ago a Cheeseburger at the same pub became $16. Now most recently, with supply and labour challenges that same Cheeseburger is now $19! Quite the price increase for the same Cheeseburger.

What Does This Mean For Your Golf Operation?
Costs are on the rise again in late 2021 and will impact the 2022 season across all sectors of your business. We’ve heard numbers as high as 7% due to fuel issues, labour shortages and supply chain challenges. It doesn’t seem to be getting any better, anytime soon! As great as demand for golf has been during the pandemic can we really expect to pass the cost increases (7% or more) along to our customers? We doubt much more than a 2% to 5% increase is going to sit well with public golfers, pass holders or members.

Can You Pass On The Projected Costs?
Our prevailing response to this question is no… for two reasons:

  1. Golf is finally in a good place again, from a business perspective and we shouldn’t get greedy (like the industry did in the early 90’s). We need to proceed cautiously and thoughtfully to keep it this way.
  2. Consumers are facing increases all around them. Something has got to give, hopefully not their golf recreation dollars. Take a look at your ‘new’ volume of play and try to plan 2022 price increases at a percentage that MAY ‘sit well’ with your golfers.Let’s keep the good momentum going and grow the game through the millennials.

Final Thoughts
In talking to Golf Industry friends/ owners/ operators the general concessions is that the industry will likely see a -10% decrease in rounds over the coming 2022 season. However we don’t see your gross revenue or net profits going down. Higher yield green fees (most public courses are moving away from pass holders or members), continued high demand (even if total rounds go down) and moderate price increases should help off-set any reduction in rounds.

This might be a great time to re-think dynamic pricing versus posted, static pricing! More on that in a future blog.

Chin up, a third year of great business at golf courses is ahead. Take a break, get some rest because here we go again 👍

We, Jeff and Tara Ciecko of CK Golf write two blogs, one is our 19th Hole Blog where we share personal experiences and the other an Industry Blog where we comment on general business and internet marketing best practices, sales strategies and give golf industry related opinions. We have owned CK Golf  for 14 years and provide business services to the golf and other industries. As of July 31, 2016 our life and our business became ‘location independent’. Our 19th Hole Blog is about the places we visit and the things we do. If you have any questions or comments, or happen to be in the same location as us please reach out and contact us anytime.