price you pay

[vancewingfield]

we were going over price inflation in my economics class and how the cost of living has gone up so much over the last 15 years alone, which got me thinking.. how much has the price of a golf round gone up? does anyone remember how much they used to pay at their home course compared to what they pay now?

[Petethreeput]

It hasn't. Today golf is an industry with too much supply for a diminishing/ leveling demand.

While the COGS is rising (labor, water, fertilizer, etc.) many courses unless they are a destination are capping their prices to keep afloat. So, while the margins are decreasing based on the increase in costs, many courses cannot increase their rates for fear of golfers leaving. $X is better than $0. Think about Priceline, the fixed costs of running a plane to Vegas is the same whether there are 2 people of 200, so they cut their losses on the seat to get some money out of the spot. Same thing applies in golf.

There are outliers here like Pebble, etc. but the course is a "must do" so people will forsake a price tag to participate.

Inflation also has not been an issue in this country for a few years. The income of the 99% has actually decreased in real terms since 2008 so there was, for a while a very real fear of deflation. Without new golfers, this industry will continue to lose courses as the supply has to be brought to meet demand.

Maybe I am wrong, but I think I am probably pretty accurate here.

[Fourmyle of Ceres]

The "best deal" public course in my area cost $15 to walk and $20 to ride when I started playing golf in the early 90's. Today it costs $18 to walk and $20 to ride. A semi-private membership deal there cost me either $67 or $68 a month (can't remember for sure) for unlimited golf back then. It is now $65/month for unlimited golf.

In areas like mine that have been overbuilt with golf courses for years, the current decline in number of golfers and rounds played has precluded any increase in prices. Many are going out of business. One formerly private club where I used to be a member a decade ago can now be played by anyone who walks up, cost is $39 including cart.

[somaplr]

It's gotten cheaper for private clubs...too much supply. I joined a club this year that was a $20,000 initiation fee 15 years ago and I got in for a fraction of the cost. It was like stealing. Your average course definitely hasn't been able to keep up with inflation costs. Most of the public courses charge the same now that they did two years ago. No historical 2.5% inflation costs for them.

[agray94]

Golf cost is a great example of supply and demand for your class.

Right now in most places, golf is cheaper than it was 10 years ago, or at worst near the same price. On top of that most places are doing more for their customers for the same cost.
Clubs are giving more amenities to members, both public and private are giving many more deals to attract and keep players
I also think they are working harder to keep courses up for the customers than they ever did...

[vancewingfield]

hmm very interesting

[exgolfpro]

[quote name='vancewingfield' timestamp='1382622819' post='8050659']
how much has the price of a golf round gone up? does anyone remember how much they used to pay at their home course compared to what they pay now?
[/quote]

I can tell you exactly. 15 years ago, I was the head professional at the local course here....it was relatively new (open 4 years) and we were charging $23 with a cart during the week and $28 on the weekend. Currently, the course is charging $35 thru the week and $43 on the weekend.

[Ger21]

15 years ago I would pay $35-$45 at most of the decent courses in the area. Today, with GolfNow, I usually pay an average of $25. At a few of the upper end public courses with higher rates, the price has remained relatively constant over the same 15 year span.