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Bottom-Line Boost

By Golf Business posted 07-26-2016 12:38

  

Rental clubs are often an afterthought at many courses, but the management of Monarch Beach Golf Links in Dana Point, California, has created a profitable revenue stream with its new “Flex Set” premium rental program.

Golfers who opt to leave their clubs at home while traveling can pay $75 (standard set) or $90 (tour set) for mix-and-match, top-of-the-line clubs that include their choice of driver (nine models), fairway woods/hybrids (nine), irons (10), putter (11) and wedges (10) from manufacturers such as TaylorMade, Ping, Callaway/Odyssey, Nike and Titleist. Customers also receive two free sleeves of select balls (eight models total) from TaylorMade, Callaway, Titleist or Nike. If they so choose, they can even rent a pair of Nike golf shoes for $15 per pair.

To date, the program has proven wildly successful, resulting in a 35 percent rental-revenue increase over 2011. From May 1 through November 30, the club rented 2,587 sets (roughly 12 sets a day) and realized $153,485 in income.

Because of close relationships with manufacturers, Monarch Beach gets the clubs on terms rather than paying what is estimated would be more than $100,000 to purchase the equipment. Meanwhile, the cost of the free balls renters receive is built into the rental fee. Better still, the profit margins on rentals are around 80 percent.

 

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