Lies, Damn Lies, and Key Club Statistics

A famous saying erroneously attributed to Mark Twain says there are three kinds of lies: lies, damn lies, and statistics.

There is truth in that. But, some statistics are worth noting - specific proven measurables and metrics that guide profitable and successful clubs. Of course, not every club is the same, yet the following may help answer the question, “How is my club doing?”

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🟦 The average green and cart fees per round (often called yield or revenue per round) for a daily fee club or resort should be 60% or greater of the highest rate. Any less, and you are discounting too much.
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🟦 How much can you charge for a green fee? A good rule of thumb for profitability is .0001 (or more post-pandemic) of your total golf course maintenance budget. So, a $1 million budget means your peak rate should be around $100.
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🟦 Total benefits should be at most 25% of payroll cost.
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🟦 The pro shop should be making at least a 30% profit.
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🟦 Golf course maintenance expenses should be no more than 60% of total revenue. Ideally, they are 45% or less.
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🟦 Food and beverage should be making a profit. At a well-managed club, that can be 10% to 20% of sales.
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🟦 A club’s payroll should not exceed 50% of revenues. Bobby Jones Links makes money at over 90% of our club’s food and beverage operations. There are exceptions to this rule for very high-end private clubs where ala carte dining is frequent and high-end.
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🟦 The profit from special events such as weddings should be 40% or more.
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🟦 Total dues should be at least 50% of your total revenue (excluding initiation fees) at a private club.
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And what about overall profitability?

Again, not all clubs are the same. Still, a property’s EBITDA (earnings before interest, taxes, depreciation, and amortization) can be as high as 30% of total revenue, depending on the golf market and the club’s location.

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