The True Cost of the Investment (And the Amazing Returns That It Generates)
Let’s bring things back to the mini golf side of things......
You’ve read plenty about the amazing revenue potential that a mini golf course creates. And it’s not just the course that drives revenue. Having a mini golf course also offers you the opportunity to create new revenue streams elsewhere.
But now, you need to know about the costs.
I’m going to make a set of assumptions here. First of all, I assume that you want to build a commercial facility that offers up a full 18 holes. You can create a 9-hole course, which typically costs between 70% and 75% of what a full course costs.
The reason that a 9-hole course isn’t half the price comes down to the economy of scale. Much of the cost involved in course creation relates to things like excavation, drainage, and site design. These are costs that don’t vary much between 18 and 9-hole courses.
We typically recommend 18-hole courses because you can get more people on them. That means you have greater revenue potential for a full-size course.
I’m also going to assume that we use a concrete base for the course. You can use other materials for the base and they tend to be a little cheaper. However, they also aren’t as durable as concrete, which is why we typically only install concrete bases.
With that in mind, let’s look at the specific costs.
On the low end of the scale, a course of this size will cost somewhere in the region of $500,000.
That may seem like a lot of money at first. However, this covers all of the costs involved in the creation and installation of the course. We cover everything from the design to the excavation and installation within this investment.
You get a concrete base that’s completed to the highest level. We also handle the laying of the synthetic grass and the landscaping.
However, the size of the course could lead to variations in that price. The $500,000 estimate relates to a course of about 800-900sqm. It is possible to go a little lower. However, it’s often a struggle to fit a full course into a smaller space without sacrificing design quality.
The price increases if you move into the 1000sqm to 1300sqm range. In these cases, the price will generally fall within the $600,000 to $800,000 range. However, larger courses also offer you more freedom in design. That means you’re able to include more obstacles and pathways to the hole. This creates the elements of challenge and strategy I mentioned earlier.
As a result, that extra investment builds replayability into the course.
Finally, we have the courses that feature all of the bells and whistles.
These are usually larger courses that have things like extensive water features and other decorations. Such courses can cost up to $1 million, depending on the extra features added.
Now, you may see some of those figures and worry about making such a sizeable investment. However, the revenue potential that such a course offers means that you will repay the costs within one or two years.
The Amazing Revenue Potential
Let me share with you some of the figures that one of our clients generates with their 18-hole course.
The client says that they get between 50,000 and 60,000 rounds per year. Let’s average that out and assume they get 55,000 rounds per year at a cost of $12 per round.
55,000 rounds multiplied by $12 per round equals $660,000 per year. Double that and you have $1.32 million.
That’s more than enough to repay the costs of even the most expensive mini golf course. In fact, the course is already generating so much profit that the client wants to install another course. This will be a 9-hole course, due to space limitations. However, it also offers the client the chance to offer 27-hole rounds when combined with the original course.
And by the way…
These figures don’t even take the extra revenue that the client generates from players who buy food and beverages.
Where We Save You Money
So, why should you work with us when designing your course?
Perhaps the most important reason is that we provide the full set of skills needed to build a course in a single package. Our team includes designers, builders, and every other professional who needs to work on the project.
Consider how this differs from trying to go it alone to find all of these contractors separately. You have to invest time into researching different contractors. And many of the people you find will have no experience building mini golf courses. Of course, you have to pay all of these contractors. Plus you’re more likely to have to pay for mistakes made along the way.
We save you money because we have all of the skills and knowledge needed to create your course under one roof.
Furthermore, we limit our use of independent contractors. In fact, typically only bring third parties on board to handle the course’s lighting and electricity needs (and even then we have prefered guys we use). We handle everything in-house (course design, excavation, plumbing/drainage, turf, accessories, landscaping, shade sails etc), which enables us to provide you with a discount compared to other providers.
How sizeable is that discount?
In some cases, it’s nearly half the price that other providers will charge. That’s because they have to bring outside help in at a higher cost, which inevitably gets passed onto the client.
The Investment That Generates Amazing Returns
The simple fact is that investing in a mini golf course has a huge impact on your bottom line. Within two years, you’ll have repaid the cost of building the course. And from there, almost all of the revenue it generates is profit.
After all, you’re spending far less on maintenance than you would on a traditional course. This means that you get to keep much more of the revenue that the mini golf course generates.
However, you need to work with the right people to make sure that the investment pays off as expected.
That’s where we come in.