Starting a Driving Range...

[cmcguire]

Anyone done it, invested in one, know how much equipment/supplies is?H

Hey guys,

I am not sure where the best place to post this would be, but after the quick responses last time, I figured here would be as good as any!

I have a buddy that is looking into setting up a driving range and I was wondering if anybody had any idea on start-up costs for something like this. I know some of the things you need and have looked at prices, but only someone with inside knowledge would know real figures. Also, there are things that I have no idea how to put a number on like, cement for a parking lot, the fairway type grass for the teeing area, putting green, netting, lighting, etc.

Any and all help is appreciated guys! This information will help me and a close friend of mine a lot!

Thanks!

[cmcguire]

Also, don't worry about factoring in cost of land, but if you have any idea about what kind of acreage would work.. please post that also!

Thanks again!

[cmcguire]

anyone?

[GetmeouttaJersey]

I was watching Tin Cup last night thinking of this post haha!

In all seriousness you'd have to put some serious thought into this. I got my degree in Business Management and I have created a bunch of legitimate business plans the past few years. Unfortunately, I get paid alot of money to break down a project like this, lol. I'll give you a vague idea of what you should expect....

All these estimates are on the low end just to give you a roundabout idea...

I'm estimating approximately 20 stalls...

20 - Driving Range Mats (5'x5') @ $250 = $5000

10,000 - Driving Range Balls @ $100 per 300 balls = $3,500

40 - Driving Range Buckets @ $7 = $280

1 - Driving Range Ball Dispenser (10K Capacity) @ $5,000

1 - Driving Range Ball Washer (Economy) @ $1,000

19 - Driving Range Tee Dividers @ $160 = $3,040

1 - Driving Range Caged Cart @ $1,000

1 - 2 Section Range Ball Picker @ $1,400

100 - 2 3/4" Rubber Tees @ $1 = $100

20 - Plastic Golf Ball Trays (Attach to mats) @ $20 = $400

5 - Driving Range Yardage Banners (50, 100, 150, 200, 250yd) @ $35 = $175

[u]Estimated Grand Total[/u]: [b][size="3"]$20,895
[/size][/b]
That's about the best I can do.

Some things I left out:

- Netting (almost mandatory to get facility approved)
-Wages
-Unexpected Costs (replacement parts, machinery maintenance, ect)

I hope this helps you. I would absolutely love to try and make this endeavor work myself. In terms of business start-up, if you think about it, $20-25K isn't all that much. The problem comes in when you're looking for land, netting, permits, maintenance, wages, ect.

Please, please, please keep me updated if you are seriously thinking about going this route. Good Luck.

[oregongolf]

Hang in there, there are several members here who have owned and/or operated their own standalone ranges... and most say it sucks. Be prepared for an eye opener.

Most people I know have said it's all about location and your region, just like anything else. As someone who's worked at a range, I will say the numbers above seem extremely conservative, even allowing for only 20 stalls as a starting point.

You'll get some bites in this thread and I'm sure the people with actual experience will chime in sooner or later.

[GetmeouttaJersey]

[quote name='jon2' timestamp='1288277534' post='2763270']
Hang in there, there are several members here who have owned and/or operated their own standalone ranges... and most say it sucks. Be prepared for an eye opener.

Most people I know have said it's all about location and your region, just like anything else. I will say the numbers above seem extremely conservative, even allowing for only 20 stalls as a starting point.

I'm sure they'll chime in sooner or later.
[/quote]

I totally agree that it would be a cut throat business. When you speak about region/location, unfortunately, to start a business in a great location, it typically is going to cost you a pretty penny, further knocking your chance at turning a profit.

I purposely estimated on the low side just to give him a roundabout idea of a minimum cost. The OP specified not to worry about land/location so that would definitely be a huge benefit if he were able to avoid those added costs.

Also, when you look at your supplies, as a business owner, you're going to constantly be going through rubber tees, wearing mats, broken sh*t. You'll probably need new balls every couple of years...It's just a brutal outlook but I'll tell you what, if you're doing something you love and you don't have the financial pressures of today's business climate, it would be a helluva fun ride...

[wescottlefty]

I would hit up a local pro shop or course and make nice with whoever maintains the course and see what it's going to cost in green fees (cost of maintaining greens and fairways)

I think the one thing missing at almost every driving range is a nice chipping area or putting area. Now I know you can't make money by selling range balls to these people but maybe you could charge by the 1/2 hour.

[oregongolf]

[quote name='GetmeouttaJersey' timestamp='1288277854' post='2763281']
[quote name='jon2' timestamp='1288277534' post='2763270']
Hang in there, there are several members here who have owned and/or operated their own standalone ranges... and most say it sucks. Be prepared for an eye opener.

Most people I know have said it's all about location and your region, just like anything else. I will say the numbers above seem extremely conservative, even allowing for only 20 stalls as a starting point.

I'm sure they'll chime in sooner or later.
[/quote]

I totally agree that it would be a cut throat business. When you speak about region/location, unfortunately, to start a business in a great location, it typically is going to cost you a pretty penny, further knocking your chance at turning a profit.

I purposely estimated on the low side just to give him a roundabout idea of a minimum cost. The OP specified not to worry about land/location so that would definitely be a huge benefit if he were able to avoid those added costs.

Also, when you look at your supplies, as a business owner, you're going to constantly be going through rubber tees, wearing mats, broken sh*t. You'll probably need new balls every couple of years...It's just a brutal outlook but I'll tell you what, if you're doing something you love and you don't have the financial pressures of today's business climate, it would be a helluva fun ride...
[/quote]

I meant region, as in geographical region.

For instance, here in the Northwest, the weather alone beats golf balls to sht. If you're doing a standalone range, and hopefully selling tons of buckets, you'll see a greater amount of ball loss. Consequently, you'll probably have to order at least once a year if you want to keep range balls in any sort of decent condition.

Anyway, if it were me... I'd want to find as many extra ways to generate revenue so I wouldn't have to sell 50 gazillion buckets and a brozillion range packages a year to be successful.

[GetmeouttaJersey]

[quote name='jon2' timestamp='1288279463' post='2763323']
[quote name='GetmeouttaJersey' timestamp='1288277854' post='2763281']
[quote name='jon2' timestamp='1288277534' post='2763270']
Hang in there, there are several members here who have owned and/or operated their own standalone ranges... and most say it sucks. Be prepared for an eye opener.

Most people I know have said it's all about location and your region, just like anything else. I will say the numbers above seem extremely conservative, even allowing for only 20 stalls as a starting point.

I'm sure they'll chime in sooner or later.
[/quote]

I totally agree that it would be a cut throat business. When you speak about region/location, unfortunately, to start a business in a great location, it typically is going to cost you a pretty penny, further knocking your chance at turning a profit.

I purposely estimated on the low side just to give him a roundabout idea of a minimum cost. The OP specified not to worry about land/location so that would definitely be a huge benefit if he were able to avoid those added costs.

Also, when you look at your supplies, as a business owner, you're going to constantly be going through rubber tees, wearing mats, broken sh*t. You'll probably need new balls every couple of years...It's just a brutal outlook but I'll tell you what, if you're doing something you love and you don't have the financial pressures of today's business climate, it would be a helluva fun ride...
[/quote]

I meant region, as in geographical region.

For instance, here in the Northwest, the weather alone beats golf balls to sht. If you're doing a standalone range, and hopefully selling tons of buckets, you'll see a greater amount of ball loss. Consequently, you'll probably have to order at least once a year if you want to keep range balls in any sort of decent condition.

Anyway, if it were me... I'd want to find as many extra ways to generate revenue so I wouldn't have to sell 50 gazillion buckets and a brozillion range packages a year to be successful.
[/quote]

Tin cup style. I'd be happy running the range full-time and giving as many lessons as possible on the side. I still don't see someone turning a profit in the first 5 years selling $10 buckets and $50 lessons. Where there's a will, there's a way I suppose...

[mgrabowy]

[quote name='cmcguire' timestamp='1288100983' post='2759926']
Hey guys,

I am not sure where the best place to post this would be, but after the quick responses last time, I figured here would be as good as any!

I have a buddy that is looking into setting up a driving range and I was wondering if anybody had any idea on start-up costs for something like this. I know some of the things you need and have looked at prices, but only someone with inside knowledge would know real figures. Also, there are things that I have no idea how to put a number on like, cement for a parking lot, the fairway type grass for the teeing area, putting green, netting, lighting, etc.

Any and all help is appreciated guys! This information will help me and a close friend of mine a lot!

Thanks!
[/quote]

A good place to start is the National Golf Foundation. They compile data on the state of the industry as well as a lot of information on construction and operation. Here's a link that might be useful:
[url="http://secure.ngf.org/cgi/catalogsearchdetail.asp?ITEMNUMBER=99GCP08&CategoryID=&Keyword="]NGF operations manual[/url]

As to the wisdom of the idea...I'll rephrase a non-golf saying:
How do you become a millionaire in the golf industry? First go out and become a multi-millionaire in a non-golf industry. Then take all your money and invest in a golf business.

Matt

[tbomb]

We run the range at our course as a service and it's a break even business, we lose a pile of golf balls because our range is narrow. lol That being said, make your range as wide as possible.


The only way I would open a driving range is if I lived in a major city and I was the only range in town

It can be done, just be very cost conscience.

GOOD LUCK!

[lkangsterl]

i just read jersey's post. i have thought about this quite a bit myself and i think the biggest costs, are land, netting, and those poles that hole the netting. someone told me those poles are 10k each. the good thing about the land is that it can be junk land that isnt' really suitable for commercial or residential development.

[bjfed]

I looked into this as well as all the driving ranges in my area blow and are outside of the city and a 25 minute drive. I scoured the interweb and subscribed to a few magazines and got a bunch of information packets from design companies and the like. Including land youre prolly not going to be able to put something [u]decent[/u] up for less than at least a few hundred thou. You either need to be the only one in the area or if there are other ranges in the area significantly better than any of the others.
Land anywhere between 13-18 acres, parking, lighting, turfgrass management, mowers(multiple if you have grass tees and a natural putting green), pickers, fuel, mats, employees, balls(reordered at least once a year), infrastructure(shack/pro shop), ball washers, concrete, plumbing, permits etc etc. If you plan on doing a decent grass area you need at least two teeing areas or one large enough where a portion can be shut down to regenerate or youll have a patch of dirt in two weeks. It all adds up pretty fast. You can obviously get away with less depending on the quality of range you are able to live with. Operating costs are reasonable, if not cheap-utilities and property taxes are the majority. Startup is where all the money is needed. Unfortunately, it appeared to me that anything successful these days has a full service snack bar, certified PGA lessons with video/launch monitor, pro shop/club repair, mini golf and on and on and on.

[OpusX20]

I went through the business planning of a stand alone range about 10 years ago. I wish I still had the materials to pass along to you. I couldn't come close to making the numbers work. Frankly, the obvious items like balls, mats, water jugs, ball washer, etc., were a drop in the bucket (no pun intended) compared to many of the other costs associated with a stand alone range. Here are some things that really added up, making a stand alone unprofitable (at least for me and only on paper)...


[list][*]Property improvements - Paving the parking lot, cement for the mat pads, landscaping, etc.[*]Building - Even if your just going to have a little single-wide trailer for your "pro-shop" there are a lot of costs associated with that.[*]Land - Obviously lease payments get ugly.[*]Cost of capital - Driving ranges are typically not the types of ventures where you can borrow money at a rock bottom interest rate.[*]Professional services - Banking, accounting , insurance (liability nightmare)[*]Opportunity cost - This is the one that really killed my idea. Even if I could make the driving range profitable from a cash flow perspective, there was still the reality that I could get a better ROI if I just took my money and bought into a Fortune 500 index fund.[*]Maintenance equipment[*]Taxes[/list]I'm sure there are others, but these are the ones that came to mind. I'm not trying to be a downer. Just trying to add to the discussion. As mentioned earlier, driving ranges attached to golf courses are often break-even ventures at best. They are much more of a cost of doing business than a real revenue center.

Either way. Good luck with your venture.

[RJRJRJ]

Sounds like the only way to make it work is if youve got a range as part of a golf course. Land is connected, infrastructure is already there, maintenance personnel are on staff etc.

[eudubmad82]

Starting a range is something that you really just need to be passionate about and not worry about turning a profit until the land appreciates. There is, however, a pretty good example of a decent investment as far as a driving range goes. There is a busy muni about 50 miles west of me that doesn't have a range and it is surrounded by flat, cheap land. They put a stand alone range in about a half of a mile away from the course and about ten minutes away from a city of 80,000. That is pretty much an ideal situation and one that you will probably not come across anytime soon.

Good luck either way.

[NWS Alpine]

I would say it not possible to make it work unless you already have a large capital sum and possibly own the land. Insurance will be a big hit as well. Without it one incident and you lose everything.

[Grapehunter]

Open a driving range and a full bar.

Bar will make money, range will break even.


Heyyyyyyy this sounds like a fantastic idea. Night time range with bar. Throw in a nice putting green and chipping area with sand bunker and you'll have a nice training facility with entertainment. Make it a 350 yard driving range and I'm there.

[sheldonjhacker]

Unfortunately, the game of golf is on the decline, so it depends on your cost of land which is cheaper than it's been in years. I would think that you'd have to go somewhere warm where you could run it year-round and find cheaper open land.

 

I see many signs that the golf range business is a lousy business, however. One I used to go to is now a Walmart parking lot. There is a huge range that sits mostly empty about 10 miles outside of NYC. Another one I know near Burlington, Vermont is beautiful but sees VERY few customers-even in the prime summer months-and I have no idea how the guy stays in business.

 

 

 

 

 

[bpark1210]

If you want to keep maintenance on the low side you'll have to invest more upfront in laying astroturf (the quality stuff that is thick and made to look like real grass). That means uplifting the land, laying gravel, sand, and proper drainage routes.

If you want keep it real grass be prepared for more maintenance costs on fertilizers, mowers, pesticides, man power, etc . . .

Putting up nets will be costly as well.

I work at a driving range that just went through some renovations this past spring. We re-graveled and turfed, painted our netting poles, and got new mats. I believe the bill was in upwards of 200K+ for a 2 story 80+ stall range. I've seen our profits from last year, it can be a very profitable investment if you know what you're doing.

[lobub]

[quote name='Grapehunter' timestamp='1288300033' post='2763866']
Open a driving range and a full bar.

Bar will make money, range will break even.


Heyyyyyyy this sounds like a fantastic idea. Night time range with bar. Throw in a nice putting green and chipping area with sand bunker and you'll have a nice training facility with entertainment. Make it a 350 yard driving range and I'm there.
[/quote]

I can just see it now... drunk guys getting into a money game of H-O-R-S-E on the green and chipping area which then progresses to a yelling match because the loser doesn't pay up which then progresses to a full on fight which ends up with a dead guy with a huge divot out of his head...
Or maybe a few wasted idiots running out into the landing areas seeing who can catch the most balls...
How about we blare techno music over the loud speaker? It'll be good for swing tempo.

Hmmm... Sign me up!

[bpark1210]

Open a driving range and a full bar.

 

Bar will make money, range will break even.

 

 

Heyyyyyyy this sounds like a fantastic idea. Night time range with bar. Throw in a nice putting green and chipping area with sand bunker and you'll have a nice training facility with entertainment. Make it a 350 yard driving range and I'm there.

 

I can just see it now... drunk guys getting into a money game of H-O-R-S-E on the green and chipping area which then progresses to a yelling match because the loser doesn't pay up which then progresses to a full on fight which ends up with a dead guy with a huge divot out of his head...

Or maybe a few wasted idiots running out into the landing areas seeing who can catch the most balls...

How about we blare techno music over the loud speaker? It'll be good for swing tempo.

 

Hmmm... Sign me up!

 

 

 

Hahah

 

 

Highly unlikely however. Remember most states require a license to sell alcohol and with that comes strict serving laws. I always do fear the guys that buy pitchers of beer at our range then go home driving drunk but like any other serving establishment it is up to the server to make the call on wether a person is in condition to purchase a drink.

 

 

[NWS Alpine]

[quote name='lobub' timestamp='1288302946' post='2763932']
[quote name='Grapehunter' timestamp='1288300033' post='2763866']
Open a driving range and a full bar.

Bar will make money, range will break even.


Heyyyyyyy this sounds like a fantastic idea. Night time range with bar. Throw in a nice putting green and chipping area with sand bunker and you'll have a nice training facility with entertainment. Make it a 350 yard driving range and I'm there.
[/quote]

I can just see it now... drunk guys getting into a money game of H-O-R-S-E on the green and chipping area which then progresses to a yelling match because the loser doesn't pay up which then progresses to a full on fight which ends up with a dead guy with a huge divot out of his head...
Or maybe a few wasted idiots running out into the landing areas seeing who can catch the most balls...
How about we blare techno music over the loud speaker? It'll be good for swing tempo.

Hmmm... Sign me up!
[/quote]



Hey it worked for bowling alleys. I say turn on the techno and blacklights. Also get some UV sensative range balls and you have one hell of a time.

[Grapehunter]

Now we are talkin lol

[ABT]

Take a look at Top Golf Franchise. I hear that they are turning profit and growing fast. They are full every time I go there and they charge $7 a game (20 balls).

[Ag3ntry]

Looking into designing a range over our large pond with floating holes and balls with maybe 10-12 bays! The pond covers approximately 8 acres.. The balls would be purchased through vending machines.. anyone ever done this?! Could it be profitable? No golf pro here.. this would be entirely just for fun!