The Pellucid Perspective - December 2010 - (Page 9)

GREATLIFE GOLF & FITNESS A formula that fits Company proves that golf and fitness go together, even if they’re separate By Jim Dunlap G olf ’s leisurely pace has proven to be a tough sell for today’s younger, more fitness-conscious generations, and the game itself is struggling to engage all the members of modern family units. Too often, budget and time-conscious families find themselves forced to choose between fitness activities and golf. Founder Rick Farrant and his Topeka, Kansasbased GreatLife Golf & Fitness company think they’ve found a win-win solution to that quandary, and the results to date appear to bear them out. At press time, Farrant and his group were anticipating the close on a lease-to-purchase deal for the Salina Elks Country Club in Salina, Kansas. That would increase the GreatLife portfolio of courses to 12, all within a 200-mile range, sprinkled throughout Kansas. The difference between GreatLife’s collection of properties and other small regional portfolios is that virtually every GreatLife golf facility has either an attached or an affiliated fitness facility that is part of the GreatLife membership package. Packaging fitness facilities and golf is not a new concept, particularly at private clubs, and one that is growing as clubs seek to attract younger members and families. What separates GreatLife’s program is the price: at most GreatLife facilities, initiation is a mere $100, and dues are only $29 per month! And that price covers the entire family, and includes access to all but one of the other GreatLife golf and fitness facilities. Members pay no greens fees or other fees, whether they’re interested in rolling fairways or washboard abs. Farrant, who has been involved in golf or related businesses for nearly 30 years, acquired his first course in 1985. The growth of the fitness industry and his love for golf merged to create the GreatLife model which may actually be benefiting from some of the very factors that are threatening more traditional golf course operations. “We create golfers and we create fitness people,” Farrant told the Salina Journal. “We price both products competitively and give both products for the same price.” Given the pricing structure, the assumption might be that the courses themselves are no-frills, poorly maintained layouts. Nothing could be further from the truth, according to Farrant. “Inherent in the price is that people expect a poor quality product due to what some other courses charge,” Farrant said. “That’s not the case. We have our own sod company (the 400acre Topeka Sod Farm) and we can do a lot of our own work on the courses, so we keep them in excellent condition. And, we’re able to subsidize the golf with the fitness.” Farrant has had no problem finding courses on the market, although he said that only one of the company’s 11 current properties was a bank takeover. In a few cases, GreatLife initially leased courses with an option to buy, but in each of those cases, Farrant said, GreatLife ended up buying the course. “We initially took failed golf courses and fixed them up, but then we started going up a couple of levels,” Farrant said. “Now we can take on more established facilities. In some cases, the “fixing up” is not cheap – Farrant said the cost of installing a fitness center and upgrading the golf course at the Berkshire Golf Club in Topeka was more than $2 million over and above the purchase price. Depending upon the location of the golf course, GreatLife either installs a fitness facility in or adjacent to the clubhouse or finds a suitable location in the closest population center to put one in. As he points out, while people may be willing to drive 15 or 20 miles to play golf, they won’t go that far to work out. The (See Formula on page 13) CONDITIONED FOR SUCCESS. The golf landscape in America has changed. In a market overcrowded with golf courses and little prospect for demand to grow significantly, today’s course owners and operators are experiencing extreme competitive pressure in nearly every aspect of their business. Never before has there been more reason to work smarter and more efficiently—or more reason to partner with ValleyCrest Golf Course Maintenance. As the national leader in golf course maintenance contracting, we’re a trusted steward of all manner of golf properties throughout America. Opportunities plentiful these days 24151 Ventura Boulevard Calabasas, CA 91302 (888) 406-GOLF www.valleycrest.com Comprehensive Golf Course Maintenance www.PellucidcorP.com The Pellucid PersPecTive 9 http://www.valleycrest.com http://www.valleycrest.com http://WWW.PELLUCIDCORP.COM

Table of Contents for the Digital Edition of The Pellucid Perspective - December 2010

The Pellucid Perspective - December 2010
Contents
3rd Party Tee Time Marketers: According to Some, “missed It by That Much”
Course Sales Pace Showing Signs of Increasing
Nov YtD Weather Impact Oct YtD Utilization
The Lonely Golfer Phenomenon
A Formula That Fits
Meadowbrook Golf on the Way Back?
Raffles a Risky Gamble
Denver, CO DMA
Dear Golf Industry Santa

The Pellucid Perspective - December 2010