Golf’s Maginot Line – Hello Money & Levies

golfwallah

When will clubs learn that hello money and levies are Maginot Line defensive barriers to joining or staying with clubs that can easily be bypassed by more savvy customers in a very competitive golf market?

High prices and hello money are now an irrelevance to many golfers, who are leaving “Maginot mentality” golf clubs or bypassing them to get better value elsewhere.

Hopefully we’re now seeing the last gasps of hello money, for example:

• The Island – now reduced from €20K to €7.5K with first 25 applicants getting 1st year membership free (even if annual sub for new applicants is 50% above existing members).
• Malahide – now down from €17K to €10K (seem also to have Annual Membership for €2K)
• The Curragh – hello money “suspended” until 2013

Many clubs have frozen or reduced their prices and good luck to them. But inflexible pricing and hidden extras such as bar, restaurant or social levies are evidence that vestiges of the Maginot mentality are still around.

basill

Malahide would have been even cheaper were it not for the members voting down the committees proposed fee drops ie: raising them back up. They had little interest in applications initially at the "old prices". And a few people fell by the wayside when they were told that the offer prices were to be increased due to the members vote.

Also all 5 day member applicants were offered 7 day (still had to pay) and I think pavilion members were asked if they wanted 5 day. During the tiger you would have been stuck in the bar for a good few years unless you knew someone. Then a few years at 5 day membership before being able to upgrade.

So far Malahide has weathered the storm quite well. It has a relatively well off catchment area, good location, little if any debt, course in good nick/drainage etc. Other factors such as drink driving will have negatively impacted on clubs such as the Island but with most people living locally to Malahide then its just a short taxi ride or walk home for most people.

I still see some room for membership fees to reduce at Malahide over time. I would suggest that if enough people write to the committee offering their custom at a lower price then it might provide more food for thought. Also bear in mind that they have an ageing membership and are very keen for younger people to join.

golfwallah

basill wrote: »

Malahide would have been even cheaper were it not for the members voting down the committees proposed fee drops ie: raising them back up. They had little interest in applications initially at the "old prices". And a few people fell by the wayside when they were told that the offer prices were to be increased due to the members vote.

Also all 5 day member applicants were offered 7 day (still had to pay) and I think pavilion members were asked if they wanted 5 day. During the tiger you would have been stuck in the bar for a good few years unless you knew someone. Then a few years at 5 day membership before being able to upgrade.

So far Malahide has weathered the storm quite well. It has a relatively well off catchment area, good location, little if any debt, course in good nick/drainage etc. Other factors such as drink driving will have negatively impacted on clubs such as the Island but with most people living locally to Malahide then its just a short taxi ride or walk home for most people.

I still see some room for membership fees to reduce at Malahide over time. I would suggest that if enough people write to the committee offering their custom at a lower price then it might provide more food for thought. Also bear in mind that they have an ageing membership and are very keen for younger people to join.

Good news for the competition - Malahide doesn't need the business!

FixdePitchmark

basill wrote: »

Malahide would have been even cheaper were it not for the members voting down the committees proposed fee drops ie: raising them back up. They had little interest in applications initially at the "old prices". And a few people fell by the wayside when they were told that the offer prices were to be increased due to the members vote.

Also all 5 day member applicants were offered 7 day (still had to pay) and I think pavilion members were asked if they wanted 5 day. During the tiger you would have been stuck in the bar for a good few years unless you knew someone. Then a few years at 5 day membership before being able to upgrade.

So far Malahide has weathered the storm quite well. It has a relatively well off catchment area, good location, little if any debt, course in good nick/drainage etc. Other factors such as drink driving will have negatively impacted on clubs such as the Island but with most people living locally to Malahide then its just a short taxi ride or walk home for most people.

I still see some room for membership fees to reduce at Malahide over time. I would suggest that if enough people write to the committee offering their custom at a lower price then it might provide more food for thought. Also bear in mind that they have an ageing membership and are very keen for younger people to join.

I can't see too many younger people having that sort of money to join a golf course. It does not seem they are too keen.

I'd say the max people are happy to pay to join a course is a little over what they would pay for a gym. So max 600 to 1000 a year. When you start going over the 1000 most would struggle to get value from it or justify the cost.

basill

I agree entirely. Far to much money when you think how many days of golf you will actually get from it. What we need is someone with far to much time on their hands to negotiate a Boardies deal withe somewhere like the portmarnock links. As a commercial venture they might be more inclined to accept say 50 people signing up at a significant discount than a club would be given the likely response from members that would have previously paid through the nose.

FixdePitchmark

In fairness, I have not got a clue how much it costs to run a golf course, somebody put up 600,000 a year ?

But the reality is it is an expensive sport to run. This expense has to be paid for by members.

It has been had out at length about Portmarnock Links in NAMA, It would have cheaper running costs.

Sadly, I've noticed a drop off in course condition on a good few courses. I asked a green keeper on one course and he told me 3 lads were doing the work that 9 were employed to do before.

The advantages of club membership are diminishing all the time. It would be a worry were it will all end up. We could lose a big course soon enough I'd imagine.

Golf now and tee time golfers, enjoy cheap golf , great course variety, great deals on top courses, no cost when not using course or playing golf.
Younger people are coming from a space where variety is all they have known, the idea of paying 5 k, 10 k , 15 k when they could have to move for work etc. is not a runner.

golfwallah

I sympathise with basill’s take on this issue. It’s understandable how many members at AGM would want new members to pay “hello money” – after all, that’s what they had to do a few years ago. They now want to defend their “investment”.
At the end of the day, that’s democracy and how members want to run their clubs is their own business.
The catch is, what existing members paid yesterday is irrelevant in today’s market. Potential new members, particularly younger ones, have to make hard choices in the current economic climate.
But everything in life has a price – even golf.
So, if members want to stick to high entrance fees, that’s OK so long as enough new members are prepared to pay.
But, if the club needs to maintain the level of membership income and can’t get the numbers they need (may not know that until late March), what then?
The price to be paid = higher than necessary subs, levies for existing members and a gradually aging membership profile. The high price option also reduces the incentive to reduce costs.
I gather Malahide have bar & restaurant levies at €75 a pop plus a course levy of €90 on top of annual subs of around €1,100 (+GUI / insurance?).
Makes you wonder how long the more established clubs will be able to hold onto their cherished hello money and levies, before they have to follow less prosperous competitor clubs, who’ve already swallowed their pride and adapted to new economic realities.
That’s how I read it - would be great to hear what other people think!