The real cost of golf – you don’t have to break the bank

Golf has a reputation as an expensive sport and, given the economic pinch, it’s a luxury fewer people are willing to indulge. As clubs and retailers become increasingly innovative, Mike Todt discovers there are numerous ways to enjoy the game we love without breaking the bank.

It’s been a tough few years for most sectors of the golf industry, with the effects of the credit crunch still taking their toll. In its entirety, a round of golf sees you fork outforgreenfees, equipment and drinks at the pub, and it no longer falls within everyone’s budget. In fact, many former golfers are now seeking cheaper alternatives to enjoy their precious leisure time.

Data from the SA Golf Association (SAGA) appears to support this hypothesis, with executive director Bruce Younge quoting in a recent article on Moneyweb that membership numbers are down five percent countrywide in the last decade. Given that year-on-year increases of two percent were par for the course prior to that, it shows the squeeze that clubs in particular are experiencing.

“Obviously the recession has affected everybody in golf,” commented Jason van Veyeren, general manager of Mowbray Golf Club. “Rounds are down almost across the board, and golf clubs are taking strain. That’s where marketing really comes in though. A lot of clubs, including ourselves, have come up with affordable specials both in terms of membership drives and greenfees.

“We’ve waived our joining fee for years, and now we’ve restructured things so that we offer packages such as five-day membership (R250 per month) and ‘Young Execs’ (for those aged 24-30 at R199 per month). In November we also ran a weekday-morning special whereby it cost just R150 for visitors to play 18 holes, including breakfast.”

Compounding the issue for clubs is that as consumer spend diminishes, running costs – particularly with regard to course maintenance – continue to escalate. Van Veyeren was able to provide some insight as to what goes into this, and the figures are eye-watering.

“The average course would run on about R450 000 per month, but that excludes capex (capital expenditure),” he explained. ‘To be conservative, you need at least R500 000 per year for capex. John Deere machines are anything from R250 000 to R400 000, and you’re looking at R350 000 for a triple-blade fairway mower. So that budget of R500 000 is like two machines a year, which is almost a best-case scenario.

“Then you have things like electricity, water, staff, security, salaries, etc. Most courses aren’t sustainable as a purely golfing entity, which is why we’ve put a lot of emphasis on conferences and events. We put all the money generated from these other revenue streams back into the course, thus delivering a higher-quality product to the golfer, while also meaning they don’t shoulder the burden of rising course-maintenance costs,” Van Veyeren concluded.

Another club to take the lead in terms of pricing strategy is Huddle Park Golf & Recreation in Johannesburg. The Linksfield club, which boasts an 18-hole course, mashie course, trout dam and bike trail among its facilities, offers five- day membership for as little as R135 per month (or R100 per month if paid upfront), while those wanting to join as full members are in for just R235 per month (or R200 per month if paid in advance).

“The response has been really positive, and our affordable membership rate has been a feature of the sales drive,” noted Sage Young, Huddle Park’s manager.

“Our costs aren’t too dissimilar to that of other golf courses either. However, we are able to operate very efficiently, and we choose to pass on these efficiencies and benefits to our customers and not to our bottom line.”

Membership pricing isn’t the only way in which Huddle Park has been inventive. Through harmonising the various income-generating entities on the property, it has ultimately been able to maximise the value offered to the golfer.

“We keep caddie rates market related, and as a business policy we don’t make any margin on the price of a caddie,” Young said. “In addition, the two restaurants and the bar are owned and run by management. This allows us to gain on the upside potential of our catering offerings. In turn, the cross subsidy of the golf and catering, along with our trout farm and mountain bike track, allows us to give golfers (and the whole family) a world-class experience for very little cost.”

The advent of virtual clubs, including Playmoregolf, online tee times and even Groupon have proved suitable for some golfers, and unquestionably driven prices down. However, with clubs around the country pioneering increasingly clever deals, the financial benefits of the above institutions are fast becoming negligible, and as Van Veyeren points out, the social element of being a member at a club brings something to the table that virtual clubs simply can’t match.

“Virtual clubs will suit certain people, but with our current membership structure, there’s hardly any difference in price anyway, especially when you factor in members’ discounts and things like that. From our perspective, we try to promote being a member of an actual golf club in terms of the social aspect, having an identity and also the camaraderie and spirit that come with club life,” he said.

“If anything, Playmoregolf and the rest motivate us to produce a fine golfing experience for those players when they visit our club, so that after their round they think ‘why am I doing this when I can be a member of such a great club!”

Of course, prior to joining a club, or even just playing at one, the first port of call for any golfer is equipment. Given that almost everything from shoes to clubs is imported, a weak rand – coupled with a weak economy – certainly doesn’t help the cause of retailers. And just a glance at the price of a new Titleist Pro VI golf ball (over R50) is enough to scare most beginners away.

“Margins in general in the golf industry are not fantastic and never really have been,” observed Garth Rowe, general manager of The Golfers Club in Cape Town. “I think the consumer in general has the wrong impression of what margins are like as they believe we have room to discount which isn’t the case. We’ve tried to minimise price increases to the consumer as much as possible, to a point where we’ve had to take some of the pinch.”

Yet while R6 000 for a new driver might seem out of your league, a quick look at the specials on The Golfers Club website will put your mind at ease if budgeting is the name of your game. Complete sets are available for as little as R2 000 if you’re new to the game, refurbished balls are on offer at just R4 and shiny new shoes could be yours for just R500.Then there is the option of second-hand clubs, which are available at a fraction of these prices.

“Is golf actually expensive?” Rowe questioned. “Perhaps if you compare it to tennis or lawn bowls. You must remember, though, that your clubs can be a once-off purchase that last you a lifetime. For R10 000 you can buy a top-quality branded set, and you don’t even have to spend anywhere near that. I’ve heard of people spending up to R200 000 on bicycles as a hobby!

“All you need to buy on a continuous basis are consumables such as balls, tees, gloves, etc. And there are great options in cheap consumables for those looking to save. High-quality used balls at five bucks apiece are cheap as chips!

“Golf courses, with current specials, don’t cost a fortune to play any more either. I don’t think people should assume it’s an expensive game before they’ve done their research.

“Besides, in what other sport can you enjoy relaxing out in the open on a beautiful course with your friends for four or five hours and then knock back a few ales on the 19th? Everyone deserves some chill time for their hard work,” he smiled.

“The perception of it (golf) as a white, Elitist sport needs to change if its share of the market is to be maximised.”

If you’re new to the game and the course is still a daunting prospect, lessons and some practice might be the way to go. So why not book a lesson online with your local PGA professional (www.bookagolflesson. co.za) with no booking fee? Prices of lessons vary countrywide, but well-renowned PGA teaching pro Wayne Berry at the Bay Golf Academy in Port Elizabeth, for example, offers a six-lesson package deal that will set you back just R900 – including range balls.

If you prefer to practise independently, most clubs let members use their range facilities for free. Alternatively, you can use them as a visitor on the day at minimal cost, or visit ranges around the country and pay as little as R40 for 100 balls, while typically making use of their short-game facilities at no extra charge.

Yet there are two frontiers in South Africa that golf needs to conquer if it is to thrive in future years, and they are not mutually exclusive. First of all, the perception of it as a white, elitist sport needs to change if its share of the market is to be maximised. The other imperative is that youngsters, regardless of race or wealth, must continue to have their interest in the game stimulated, with it being vital that the game remains accessible to them.

If you’re in the Port Elizabeth area, your kids can visit Berry and his fellow PGA professionals at the academy once a week for group coaching and pay just R560 for the school term. Although this seems especially cheap, comparable offers are now common place around the country.

However, when it comes to promoting golf development at club level, Mowbray has really taken the initiative in the last year by embarking upon a programme whereby they go to a variety of local underprivileged schools on a player recruitment drive. What they offer is paid-for coaching by PGA pros at the Cape Peninsula Driving Range (situated opposite the golf club) twice a week. In addition, the club subsidises the transport of the children to the range from their respective schools, while also paying for lunch and drinks.

“Right now, we’ve got more than 30 students, and they get coached on a Monday and a Thursday,” Van Veyeren explained. “It’s a three- month orientation programme where they learn the game, and even come to the club afterwards to learn things like chipping and course etiquette. Then we enrol them into our apprentice programme, by which time we start introducing them to the course.”

He added: “It’s so exciting for us here at Mowbray, and we’ve now got a corporate sponsor come in. We’ve just had shirts, clothes and hats sponsored too. It’s a great project for corporates to get behind.”

“The key for us is to grow the game. We’ve always been passionate about junior golf, but something like this gives youngsters (who might never have been able to afford to play) the opportunity to enjoy this wonderful sport of ours.”