At what point does golf get too expensive? Oobgolf.com had a post today titled How Much Is Too Much For Golf? and it got me thinking. At what point does a high greens fee become outright extortion?
Is $495 too much to play Pebble Beach, arguably the most beautiful golf course in the world? Many people will argue that price shouldn’t matter when it comes to a “once in a lifetime” experience like Pebble Beach. But I disagree. While I understand that maintaining a golf course isn’t cheap, greens fees at renowned golf courses have officially become ridiculous.
To get to this conclusion, let’s start with what we know. Here in Columbus, Ohio (one of the larger cities in the country) your average public greens fee is $40-$50. Obviously, at those prices you aren’t getting a world-class golf course; keeping a golf course immaculate isn’t cheap. That being said…the price of maintaining a Pebble Beach doesn’t equate to an additional $450!
Please don’t misunderstand me – I’m typically not one to complain about costs and I don’t expect to pay $100 to play Pebble Beach. And for all my bitching, apparently I’m still willing to pay the ransom these courses charge because earlier this year my wife and I went to play Pinehurst #2. Playing Pinehurst is the first time I’ve shelled out hundreds of dollars for a round of golf, and at the end of my round I found myself feeling confused.
On the one hand, I now have the memories of playing one of the most historic golf courses in American golf history. I even played from the tips to get the “US Open experience.” The problem is, after spending that much money for a round of golf, I pretty much expected to experience 4.5 hours of heaven on earth. And while I will say it’s my fondest memory so far in 15 years of golfing, I still felt somewhat disappointed afterwards. Why is my ball sitting on a dry patch – for $400 can’t they get grass to grow here? Why do I have a thin lie in this bunker – does my $400 no go towards the sand budget?
So my question is – unless you’re wealthy, is it even possible for a round of golf to live up to the expectations you have after paying so much?
All of this being said, sadly I would still pay $495 to play Pebble Beach (if I can ever convince the wife to take another “luxury golf vacation). So maybe the reason these courses charge so much, is that despite our bitching, in the end we’ll still pay whatever they ask.
[...] This post was mentioned on Twitter by Stuart Lynn. Stuart Lynn said: – Are High Greens Fees Extortion? #golf http://bit.ly/n8Bgm (via @TheCommonGolfer) > depends how well you play, shame you can't know [...]
Pebble Beach is a business where the stockholders desire a decent return on their investment. They have a product unlike any in the world. For decades, it has been very, very difficult to play PB, regardless of the going rate. The pricing strategy they use is called, “Whatever the market will bear”.
Public courses in Columbus, OH (do you know Heather, ‘Real Women Golf” ?) and every other city rarely even expect to break even. Privately owned courses also have other profit sources (well stocked pro shop, grass driving range, nice restaurant and bar, etc. to offset expenses and can be very, very competitive with their greens fees.
Apples and Oranges.
That being said, the prices they charge are outrageous. And, the Lexus I really want is $82,600. I’ll stick with my Avalon…
MARKET PRICES & RETURN ON INVESTMENT OR CONSUMPTION
While $495 is a high price, customers are willing to pay it and so clearly it is the right price. If they raise the price to $695 or higher, who knows, customers may still be willing to pay, and in that case the price will be the new market price. The question – is it worth it? … really depends. The answer is actually simple – if you believe it is worth it then you will pay it. As for your satisfaction after the event, it’s a case of “buyers remorse”.
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