Hey Jared- great post! Curious more so on how you're estimating the total market here? I'm thinking about it in terms of # of driving ranges and # of bays / range. My estimates suggest ~1k ranges (times) 35 bays / range = 35,000 bays in total. This would imply ~40% share of the market thus far.
Just trying to better square the math between your 3% and my 40%. A total beginner to the industry so might be completely off base here. Let me know what you think.
Hey Kevin - thanks for the message! That number came directly from Callaway's investor deck. Callaway believes the TAM is 610k bays. Here's a link to the investor page - go to April 2022 and look at page 88.
Jared - Thanks for the post. Interesting to learn more about the Toptracer business model. I am curious about your Bay View Golf Course example. A 22% increase on $38k of monthly revenue is $8,360/month in additional revenue. When you subtract the $7,600 monthly cost they're only netting an additional $760 per month which means a 10% ROI. Not bad, but nothing to write home about either. I'm by no means a driving range operator so perhaps there are limited options to invest and increase revenue, but it didn't seem to be that impressive of a return to me. Thoughts?
Hey Jared- great post! Curious more so on how you're estimating the total market here? I'm thinking about it in terms of # of driving ranges and # of bays / range. My estimates suggest ~1k ranges (times) 35 bays / range = 35,000 bays in total. This would imply ~40% share of the market thus far.
Just trying to better square the math between your 3% and my 40%. A total beginner to the industry so might be completely off base here. Let me know what you think.
Hey Kevin - thanks for the message! That number came directly from Callaway's investor deck. Callaway believes the TAM is 610k bays. Here's a link to the investor page - go to April 2022 and look at page 88.
Jared - Thanks for the post. Interesting to learn more about the Toptracer business model. I am curious about your Bay View Golf Course example. A 22% increase on $38k of monthly revenue is $8,360/month in additional revenue. When you subtract the $7,600 monthly cost they're only netting an additional $760 per month which means a 10% ROI. Not bad, but nothing to write home about either. I'm by no means a driving range operator so perhaps there are limited options to invest and increase revenue, but it didn't seem to be that impressive of a return to me. Thoughts?
It’s a fair critique - context is important. 10% could be a large increase.