View from the 8th hole green on September 7th, 2021.
Amazing what a planned price increase can do to boost sales. In a sometimes criticized move, the RSF golf board increased initiation fees from $50,000 to $75,000 starting September 1st, and then wisely advertised the crap out of this fact.
This tactic worked in spades resulting in 81 new golf club members in August alone resulting in a total of 528 club members, the highest since the 2007 recession. That’s about $4M in extra unplanned revenue for those keeping track.
Golf club board president Blair Nicholas stated that this vindicates the club’s decision to undergo a major renovation. He said that when you give customers reasons to like your product (like a major renovation), they will respond in kind.
At the September RSFA board meeting, Nicholas gave a renovation update. The front nine holes will re-open the 1st or 2nd week of October. This is yet another schedule slippage from mid-July, then mid-August, then mid-September, and now mid-October. Full 18 holes expected to open mid-December now.
Short game and driving range renovations have been held up by the slow county permit process, those areas might now slip to the spring (must wait for the start of the growing season).
The renovation has grown in cost from $6.4M to a latest estimate of $7.9M. As per the above, the golf club has brought in more than enough revenue to offset these unexpected costs.
Applicability to Tennis/Osuna
I hope the folks that run the tennis and Osuna facilities are taking notes. It is indeed possible to do major upgrades if you have the funds to do so. Having run a commercial horse stable myself, I know there is money being left on the table with Osuna’s current low rates. I know less about tennis/pickleball clubs, but I strongly suspect there is opportunity there as well.
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