The Pellucid Perspective - September 2011 - (Page 9)

Johnston, who hopes to eventually cap memcause of the soil and the water.” “People out here bership at 400-500 once the second course Chris Johnston, whose status as the third wear jeans and boots is complete. Awarii Dunes, which opened owner of the Dismal River Club attests to the fact that all the Sandhills clubs have not been with 50 charter members and has 60 to date, for the snakes and home runs right out of the box, said the reis currently semi-private and relying heavthe grasshoppers mote nature of the Sandhills courses is actuily on concierge referrals from owner Kent ally a major part of their allure. when they come, and Freudenburg’s chain of area hotels, hopes to go fully private eventually, and also generates “It’s almost a Field of Dreams, Shivas Irons they’re fine with that.” revenue from lot sales adjoining or neighborkind of experience – kind of a pilgrimage or ing the golf course. a golfing monastery,” he said. “Golf in the Rupert O’Neal Although the allure of a remote getaway Sandhills is like nothing ever seen this side Ballyneal Owner with great golf appears to be holding up relaof Nebraska. These are really kind of ‘Bucket tively well (no cell phones or Internet serList’ types of courses.” vice at Sand Hills, for instance), owners like The draw is obviously the golf. If memJohnston and O’Neal are proceeding cautiously. Johnston didn’t bers, their guests or visiting prospective members are looking for white glove service, fawning attendants dogging their every step give Tom Doak the go-ahead for the second course until the or luxurious accommodations, the Sandhills is not the place for Dismal Rivers membership voted in an assessment to help fund them. Rustic is the operative term for the clubhouses at virtually it. O’Neal, who overly modestly characterizes himself as “a poor every Sandhills club, and while the stay & play accommodations farmer” who is still “pretty leveraged,” said he is considering some which virtually all offer are comfortable, none will be confused changes to his financial model at Ballyneal, either selling part of his interest or making it an equity club, before he pulls the trigger with the Ritz Carlton. Alluding to that comparison, O’Neal said, “We don’t have to on the club’s second course. While the realities of doing business in the golf industry do put on the Ritz for our members or guests. Sand Hills set the bar pretty low on accommodations, and they’ve done just fine, so occasionally intrude in the Sandhills, it is intriguing to see that that’s what people expect. People out here wear jeans and boots golf for its own inherent appeal, in an almost natural setting, still for the snakes and the grasshoppers when they come, and they’re has a following. n fine with that.” Manageable economics play a role Given the relatively low cost of land, course construction and maintenance, golf economics in the Sandhills are a bit different than in other parts of the country. Since most of the courses are private, the competition is for members, not rounds, and since most of the golf is stay & play due to the remote nature of the facilities, guest room nights are at least as valuable as greens fees. Bill Kubly, founder and CEO of Landscapes Unlimited, a course owner/operator and a long-time member at Sand Hills and partner in Sutton Bay, said Sandhills courses operate on a different level than most U.S. courses. “Sand Hills probably only does around 7,000 rounds a year and they do fine,” Kubly said. “With room nights, hunting, fishing and the rest, Sutton Bay probably only does around 5,000 rounds and they’re still making money.” “Most destination clubs are not about rounds of golf,” said Mark Amundson, the general manager and managing partner at Sutton Bay. “We’re as busy or busier in the hunting season than we are during golf season, and people enjoy the sporting clays, spa services and other things as well as the golf.” Membership costs vary considerably throughout the Sandhills. Ballyneal, which has “around 100 members” according to O’Neal, charges $50,000 non-refundable membership plus $6,000 in annual dues. Sutton Bay has a membership deposit fee of $75,000, with approximately 250 members. Sand Hills is reportedly around $50,000, with a more limited membership estimated at slightly over 150. Dismal River is “$20,000 or less” according to www.PellucidcorP.com 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. 24151 Ventura Boulevard Calabasas, CA 91302 (888) 406-GOLF www.valleycrest.com Comprehensive Golf Course Maintenance 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 - September 2011

The Pellucid Perspective - September 2011
Contents
The China syndrome
Shift happens: The impact of Hispanic growth on local golf markets
Promoting rounds at rate card — a novel concept?
Promoting rounds at rate card — a novel concept?
There’s golf in them thar’ (sand) hills
August weather impact, July utilization
Seattle, WA Core Business Statistical Area (CBSA)
Seattle, WA Core Business Statistical Area (CBSA)
The long and the short of it

The Pellucid Perspective - September 2011