The Pellucid Perspective - May 2018 - 15

In summary, Detroit has a few things going for the average golf
operator but, unfortunately, more on the minus side of the balance
sheet in its current state. In the positive column, the market has a
strong golfer base and a well-balanced distribution of supply.
significantly shorter-than-average season, the market's average
golf "factory" runs at lower throughput vs. its Top 25 US Golf
Markets peer group. On the annual Golf Fees Revenue productivity side, the market generates roughly $0.7M per public
regulation-length EHE which significantly trails the Top 25
Markets average. As we move down the waterfall of health
metrics, the combination of the lagging Utilization and lower
Revenue per EHE produces a RevpAR result that significantly
trails the Top 25 Markets benchmark. As a final measure for
the Top 25, the Golf Fee Profit-per-Available Round estimate
(designed to equalize the equation when comparing high costof-living markets to more reasonable ones) is $4 which is well
below the national average of $9 so the market doesn't get any
significant gains in the cost to produce a round of golf (which
surprises slightly in that Detroit's economic depression should
make it a relatively affordable market compared to the Top 25).
In summary, Detroit has a few things going for the average

golf operator but, unfortunately, more on the minus side of the
balance sheet in its current state. In the positive column, the
market has a strong golfer base and a well-balanced distribution
of supply. It appears that golf should be relatively affordable
with over 1/3 of the supply being Public-Value. On the other
side of the ledger, even to a greater degree than many other US
markets, they're still struggling to absorb the stubbornly high
supply inherited from the 1990s-2000s and an inability to grow
rounds demand outside of favorable weather variances. The
trailing Utilization figure suggests that there are some shortterm improvement opportunities available to at least run their
golf factories for more throughput to "make hay when the sun
shines." While the city still isn't out of the economic woods
completely, the macro economy and inflow/outflow trends
should be shifting to the better and some of that has to translate into more of a tailwind for Detroit owner/operators than
they've had over the past decade.
n

"Clear Solutions to
Golf 's Business Issues"

Visit our website and register for more information and free sample reports at www.pellucidcorp.com.
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(See Hispanic Golf on page 14)
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The Pellucid PersPecTive

15


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Table of Contents for the Digital Edition of The Pellucid Perspective - May 2018

TOC
NGF 2017 industry report released: facts served “sunnyside up”
Baylands Golf Links a win-win-win proposition times two?
Club manufacturer service frustrates green grass customer
April golf weather impact: A sea of red but March utilization hits 60%
Detroit fortunes looking up; golf market to follow?
It is, after all, all about the money
The Pellucid Perspective - May 2018 - TOC
The Pellucid Perspective - May 2018 - NGF 2017 industry report released: facts served “sunnyside up”
The Pellucid Perspective - May 2018 - 3
The Pellucid Perspective - May 2018 - 4
The Pellucid Perspective - May 2018 - 5
The Pellucid Perspective - May 2018 - Baylands Golf Links a win-win-win proposition times two?
The Pellucid Perspective - May 2018 - 7
The Pellucid Perspective - May 2018 - Club manufacturer service frustrates green grass customer
The Pellucid Perspective - May 2018 - 9
The Pellucid Perspective - May 2018 - April golf weather impact: A sea of red but March utilization hits 60%
The Pellucid Perspective - May 2018 - 11
The Pellucid Perspective - May 2018 - 12
The Pellucid Perspective - May 2018 - Detroit fortunes looking up; golf market to follow?
The Pellucid Perspective - May 2018 - 14
The Pellucid Perspective - May 2018 - 15
The Pellucid Perspective - May 2018 - It is, after all, all about the money
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