What is in this article?:
- Fitness Centers Offer Stability for Great Life Golf and Fitness
- Planning for the Future
Adding fitness centers to its golf clubs has helped Great Life Golf and Fitness reach more people and stay profitable as golf participation declines nationwide.
Rick and Linda Farrant decided to add fitness to their golf clubs while keeping their membership dues low. Photo courtesy of Great Life Golf and Fitness.
Planning for the Future
When Great Life offered only golf, the couple ran projections to determine a good price point. Their projections showed that the lower their dues, the more people they would attract and the higher their ancillary revenues from guest fees, golf cart fees, beer sales and other sales would be, which increased the overall revenue. The couple then lowered their dues from $75 per month to $25 per month.
“If it hadn’t worked, we would have been done,” Rick says. “But it did work. That took us to another level.”
However, Great Life did not hit its stride until they added fitness, Rick says. Instead of pulling only from the 6 percent of the population that golfs, Great Life now also pulls from the 16 percent of the population that belongs to a fitness facility.
“So from a business side, we are now hitting 22 percent of the market where if we were in just the golf market, we would be hitting just 5 or 6 percent,” Rick says.
Converting those fitness center users to golfers is paramount for the Farrants, who hope to lure people to the greens by situating their fitness centers with a good view of the golf course. The retention rate for golfers is higher than it is for fitness center members, Rick says.
“We can track that, and once we get them into that side of the equation, they’ll be here for life,” he says. “Where the fitness guys, you have to battle to keep them. So if we can get them in doing both, we keep them.”
Great Life’s attrition rate averages 10 percent to 15 percent each year, Rick says. Its margins and revenue also are good, he adds, without providing numbers.
The Farrants have used their experience to help others. They formed a limited liability company in which they are half-owners with the YWCA of Topeka. Great Life is hired and compensated to run the YW, which had been losing $10,000 per month before this agreement went into place a year and a half ago.
The Farrants also are translating their model into a franchise offering to help other golf course owners who want to add fitness to their mix. Plans are to expand in the future more through franchising than through purchasing.
Part of the reason for the shift relates to family. The couple has five grown children, seven grandchildren and recently adopted four young children whom they had fostered. Keeping track of all the family activities as well as a growing number of clubs can be daunting, even with a good group of managers on hand, Rick says.
That does not mean the Farrants are not looking to improve by keeping track of what others are doing and adapting ideas that might work for Great Life. They read industry publications, attend industry trade shows and visit other facilities in hopes of finding ideas that will improve their business.
“We are not reinventing the wheel,” Rick says. “We are seeing what others are doing and what is working.”