Return on Investment (ROI)

If pace-of-play is a problem at your facility, then solving that problem must have some value to you. The question is… “What’s the value of solving the problem for my club?” In order to determine that value you must decide which of the following factors are tied to pace-of-play at your facility…

  • Golfing experience: can I improve it with a better managed pace?

  • Staff effectiveness: can it improve with a better tool set for managing pace?

  • Revenue based on rounds played: can I increase it with a better pace resulting in increased revenues during peak periods? Can I increase it based on having a reputation for a good pace resulting in more repeat business, helping me fill non-prime times?

  • Post-round food and beverage sales/shop sales: if round times decrease and golfers/members have more time to spend in and around the shop, can I generate more sales?

  • Membership: will a solid pace program help me attract it? Will a solid pace program help me maintain it?

While we believe all of the above can be positively affected by an improved pace, some will have more impact than others based on your type of facility. In order to help you determine the value by facility type, consider the following:

Private facility

In a private facility, the return on your investment in the Personal Ranger may be more difficult to quantify but will likely come from a smoother operation resulting in happier members and guests without the everyday hassles of pace-of-play. Also, with the Personal Ranger and an improved average pace-of-play, more of your members can play during the prime time periods. This could result from better efficiency of starter time usage, easier incorporation of waiting lists, or by modifying the starting interval. All of these options are made available by a better, more consistent pace-of-play.

Additionally, look for smoother execution of outing play. A more consistent pace during the golf portion of the event will allow after-golf banquets and programs to begin on-schedule. Also, if you are attempting to attract new membership, a reputation for pace can be a great selling point.

Public facility

In addition to the benefits listed above, with the Personal Ranger and an improved average pace-of-play, you can realize up to several additional tee times per day, especially on the busy weekend days which could result in significant incremental revenue and an ROI of as little as a couple months. Our existing partners are experiencing an average improved pace time of 15 minutes. While this should translate into several additional groups on busy days, the fact is that just one additional foursome on the course during the three busy weekend days (Friday, Saturday, Sunday) will generate significant incremental revenue (see example below). Use the worksheet below to determine how long the ROI will be for your club based on incremental round revenue alone. 

 

Tee Times Saves/Added per month

Revenue

 

8

12

16

20

24

28

56

Generator

$60

480

720

960

1,200

1,440

1,680

3,360

$100

800

1,200

1,600

2,000

2,400

2,800

5,600

$ per Tee Time

$150

1,200

1,800

2,400

3,000

3,600

4,200

8,400

(4 players)

$200

1,600

2,400

3,200

4,000

4,800

5,600

11,200

$300

2,400

3,600

4,800

6,000

7,200

8,400

16,800

$400

3,200

4,800

6,400

8,000

9,600

11,200

22,400


Additional Revenue per month

Example: A conservative estimate of just 1 additional foursome on the course during the three busy weekend days (Friday, Saturday, Sunday) will generate 12 added foursomes per month. If your average revenue per foursome is $200, you will generate an additional $2,400 per month. Based on a total cost of the Personal Ranger system of $10,500 for 70 units, your ROI would be 4.375 months. Alternatively, on the 70-unit lease program, this example would yield an additional $2,036/month in positive cash flow ($2400 - $364 = $2,036).

Additionally, more rounds sold and played on any given day naturally will result in more incremental sales in the shop, restaurant and bar. This is especially true when you consider those same golfers now have more post-round leisure time afforded by the quicker pace.

We hope this helps you determine the value of an improved pace-of-play at your facility. Our results to date have proven that incorporating the Personal Ranger as the anchor to your pace-of-play policy will result in a better pace! We can help make your facility a great pace to play!