Has Golf Outpaced Inflation?
Every Monday, I write a newsletter breaking down the business in golf. Welcome to the 113 new Perfect Putt members who have joined us since our last newsletter. Join 10,148 intelligent and curious golfers by subscribing below.
Read Time: 5 minutes.
Today’s newsletter is powered by Charlie Golf Co.
Cool ad spot today.
My good friend Tyler Johnson was playing golf last summer with his son. He was tired of his golf clubs rattling around the golf cart, so he went to buy his son a bag online.
But he had a problem. He didn’t see one he liked. So he designed his own.
Tyler’s entrepreneurial journey is worth a deep dive on its own. He started with $5,000 and has bootstrapped the business.
Charlie Golf Co has sold over 3,000 bags and 1,000 club sets. I have personally bought two bags and a club set.
The best part is that my daughter wants to go to the golf course to use her new bag, and that is worth it in itself.
Tyler is offering readers 10% off. Click the link below to get your child, niece, nephew, or grandkid a new bag. Use code PERFECTPUTT.
Hey Golfers —
Inflation in the United States has increased by 24.8% from January 2019 to May 2024. You can argue whether that is an accurate number — that is your opinion. But for this exercise, we pulled that number from the Bureau of Labor Statistics.
Golf isn’t immune to inflationary pressures like those in other industries. Prices have gone up on items from turf equipment to golf balls.
As I wrote in last week’s piece — golf continues to grow and touch records. And the overall price of playing the game hasn’t stopped that growth.
Now, analyzing every facet of the game regarding price increases is nearly impossible, and some price increases have some regionality.
Let’s get to it.
Many golfers consider green fee prices a top concern. The National Golf Foundation recently released this fantastic chart on green fee inflation.
From 2019 to 2023, green fees at a public golf course increased by 16.5%, less than the inflation rate in the United States—but this does not include the first half of 2024. Nonetheless, it is fair to speculate that green fees have not outpaced inflation.
Green fees have doubled in some areas of the country in that five-year span. And it isn’t uncommon to speak with someone who was paying $55 for a green fee in 2019 and is now paying $90 for that same green fee.
Places like Shadow Creek in Las Vegas have increased their green fee from $600 to $1,250 in that same time frame.
We did a survey on the green fee increases, and it was interesting to see the increases at private country clubs.
The average initiation fee in the survey was $26,000 in 2019. The lowest was $0, and the highest was $105,000.
The average initiation fee in the survey was $49,000 in 2024. The lowest was $4,500, and the highest was $175,000.
Over 75% of initiation fees more than doubled. And the highest growth went from $3,000 to $30,000.
Monthly dues at country clubs didn’t increase as much as the initiation fees — they increased around 27% for those who completed the survey.
Golf courses receive some criticism for increasing green fee prices. This is understandable—they are customer-facing. But it doesn’t all fall on them.
Here is just a quick example.
I spoke with an industry executive with extensive knowledge on the turf equipment side. He pulled some pricing from 2019 and just last week for us.
A John Deere rough mower was $61,000 in 2019, and last week, it was $98,000, an increase of 61%. A John Deere walk-behind green mower was $10,150 in 2019, and last week, it was $12,825, an increase of 26%. John Deere Gators have nearly doubled in price in the same time frame.
I also spoke with a golf course owner in Alabama. His agronomy program has increased in price by 7.5% from last year alone. He will spend north of $100,000 on agronomy supplies.
Turf equipment and argonomy are significant capital expenditures for a golf course, and high increases in these expenses have a dramatic impact on the bottom line.
That same golf course owner in Alabama saw labor increases of 32% from 2022 to 2023. To his credit, he has only increased green fees by 14% from 2019.
Here is a look at golf equipment.
In 2019, a dozen Titleist Pro V1s were $48; today, they are $55, an increase of 14.5%. Bridgestone has only increased 4.2% in that same timeframe.
The TaylorMade M5 driver was $500 in 2019, while the Qi10 driver was $550 in 2024, an increase of 10%. In 2019, the PING G410 LST was $500; the G430 LST is $580 today, an increase of 16%.
Golf has experienced similar price increases to other outdoor sports and hobbies that thrived during the COVID-19 pandemic. Ski resorts have increased lift tickets substantially. A lift ticket in Breckenridge increased by 54% from 2019 to 2024, while a lift ticket in Big Sky increased by 34%.
The golf industry has certainly experienced price increases from 2019 to the present. And while this has impacted some parts of the country more than others, golf as a whole is in line with the current inflation rate in the United States.
Have a great Monday. We will talk to you next week!
Your feedback helps improve Perfect Putt. How did you like this week's newsletter?
If you enjoyed this week’s newsletter, please share it with your friends!
Are you interested in partnering with Perfect Putt? Click the button to learn more about sponsorship opportunities.
Thanks for the post of Charlie Golf Co. I'm only 3 weeks behind on my E-Mails, getting old and slow now that I only work 2 nights a week. Congrats once again on +10,000