BrianL99 |
03-04-2024 08:10 AM |
Quote:
Originally Posted by golfing eagles
(Post 2307396)
My take is:
#1) We need expert agronomists and to pay expert golf course maintenance companies rather than lawn care companies. With over 1,000,000 rounds/year on champ courses and an average of say $60/round, the money is there. Just do the math: It takes about $500,000 to maintain 9 holes in excellent condition, we currently have 36 "9's" of champ golf, so that would be $18M out of $60M. Employees, full and part time, let's say the equivalent of 20 FTE's each on 13 courses (5 office workers, 3 managers, a pro, 3 starters 2 ambassadors=14 x 50% more hours than full time for weekends and long days) and a generous average of $20/hour= 13x20x2,000 hrsx$20/hr= $10.4M/year. Now were up to 28.4M out of the $60M in greens fees. Overhead for building maintenance, cart paths, parking lots, electricity, HVAC? No idea, but I would doubt more than $10M/year. Even if these assumptions are off, there is still $21.6M of play room. IMHO, this is very "doable"
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I think you're fairly close on your numbers. I did a rough analysis last year, backed up by a few quotes I found online as to the # of rounds. I think this year, the Championship courses will do 1.2M rounds (18 hole rounds) at a yield of about $60/round ... about $72,000,000.
With maintenance (IMO, you're little light on budget for 9 holes) at $600K/year and expenses for staffing, overhead, etc, I would put the # just under $1M/year/9 holes. I would consider parking lots, clubhouse maintenance, etc, to be overhead to the Country Club (restaurant). Close enough to your number.
$72,000,000 gross revenue. $33,000,000 CoGS. Throw in 20% margin of error, now we're at $39,000,000 CoGS.
$33,000,000 gross profit. 45% Profit. Not bad work if you can get it.
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