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"We don't speculate, we measure, we analyze, we drive your research."
Examples of our Work
One of our specialties is identifying the dollar value of various golf course characteristics in a particular region. The table below gives two examples of this type analysis. Economists call this hedonic pricing, and it is a widely used technique to identify product characteristic consumer valuations. These are only intended as examples. Please don't use these for any other purpose.
| Golf
Course Feature |
Dollar
Value of Feature Holding Constant other Course
Characteristics |
| States |
AZ |
$11.23 |
| |
CA |
$5.24 |
| |
CO |
($11.39) |
| |
KS |
($19.35) |
| |
KY |
($19.16) |
| |
NC |
($14.47) |
| |
NV |
$9.01 |
| |
SC |
($16.16) |
| Bar |
Beer |
($3.16) |
| |
Beer/wine |
($1.38) |
| |
Full |
$2.39 |
| |
None |
$0.00 |
| Designers |
Alister
Mackenzie |
$12.35 |
| |
Arnold
Palmer |
$21.25 |
| |
Ben
Crenshaw |
$49.10 |
| |
Bob Cupp |
$25.42 |
| |
Duffy
Martin |
$10.79 |
| |
Jack
Nicklaus |
$36.22 |
| |
Pete &
P. B. Dye |
$20.73 |
| |
Pete Dye |
$32.63 |
| Driving
Range Features |
Both |
$2.45 |
| |
Grass |
$2.63 |
| |
Mats |
($4.48) |
How do we interpret these numbers? Take for instance the designers. Consider two hypothetical courses which are otherwise identical, same length, grass, location, everything, but one is designed by Pete Dye and the other is designed by both father and son, Pete and P.B. The course designed by Pete charges $32 more than the course designed by a no name designer while the course designed by Pete and P.B. only charges $20 over the no name designed course. This suggests that Pete Dye courses are more valuable to golfers, by about $12 per round, than courses designed by Pete and P.B.
Also, adding a grass or a grass and mats driving range adds about $2.50 to the price of a round that golfers are willing to pay, but having a mats only driving range actually reduces the price that can be charged.
Green fees are high in California and Nevada, but low in Colorado and the southeast.
The following tables represent the type of work we do to characterize golf and local demographic features of a region. This form of analysis is useful for developers, designers, and investors in the early stages of planning.
Revenue Forecasts for Dover, TN
| Rounds
Based on Paris Landing |
Green Fees
at Paris Landing |
Annual
Green Fee Income |
Annual Cart
Fee Income |
Annual
Concession Income |
Estimated
Total Annual Income |
| 30,000 |
$19.00 |
$570,000 |
$225,000 |
$159,000 |
$954,000 |
| Rounds Based on Dover
Area Courses * |
Green Fees at Dover
Area Courses * |
Annual Green Fee Income
* |
Annual Cart Fee Income
* |
Annual Concession
Income * |
Estimated Total Annual
Income * |
| 32,111 |
$19.26 |
$618,458 |
$294,779 |
$182,647 |
$1,095,884 |
| * Average based on all 28
Dover Area Courses |
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©2001 Sportometrics, All Rights Reserved. GOLF MAGAZINE Golf Course Guide © 1995-2002 Time4 Media
Ô
, used under license by Sportometrics
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