Many people underestimate the real costs of opening a driving range and will not comprehend how much money they must spend. Many people dream of opening a space for individuals to practice their golf swing. Typically, opening a driving range has a pretty hefty initial investment. Although all you need is teeing areas facing an open field, some driving ranges have elaborate embellishments. For those considering opening a new driving range, it is important to note that the cost ranges will widely vary. Factors like location or if it is indoor or outdoor will make a huge impact on costs.
Where the Costs Come From
Regardless of where you decide to open up shop, an outdoor range will be significantly less expensive, as the high-tech golf simulators for indoor ranges can cost six figures per unit, for those wanting to open a golf driving range without a heavy purse that is low-tech with no amenities. You might get away with it only costing you around $100,000. However, you could be looking at over double with all the high-tech amenities. Regardless, secure t2green insurance to protect your assets. There is no specific figure that explains what it will cost to open this business. However, a few factors can give you some insight.
Fixed Costs
One of the most significant initial expenses for opening a driving range will be the property itself. This obviously will depend on the location and the number of acres on the plot of land. Other components of fixed costs include:
- Golf ball dispensers
- Token dispenser
- Lawn-mowers
As you can imagine, these costs will greatly depend on the type, quality, and amount. What are you willing to invest for your fixed expenses?
Variable Costs
You will need to consider your variable costs as well to determine an accurate figure of what it costs to establish a golf driving range. Daily Operational expenses will include the salary you pay to your staff and maintenance costs. It is crucial to consider the ongoing costs to keep a driving range running smoothly. Be sure to stay on top of sanitation and necessary repairs to help avoid any preventable mishaps. Other item costs to consider:
- Mats
- Balls
- Buckets
- Ball Dispensers
- Ball Washers
- Tee Dividers
- Caged Carts
- Rubber Tees
- Plastic Golf Ball Trays
- Yardage Banners
Is it a Profitable Investment?
It is worth your while to research the size of the driving range you are going for so you know how much of each of these you will need. This business can be challenging to generate the amount of profit you wish to see and recoup your initial investment. However, it can and has been done. The key is to bring in enough traffic to sell enough balls over the year to cover payroll, insurance, cost of the property, and maintenance. The retail sale of golf equipment can also bring in a reasonable amount of your income.
About T2 Green Insurance
T2Green insurance provides the best customized and comprehensive protection for your club, resort, or golf management business. Our niche expertise and sole focus is ensuring this class, while our industry professionals are dedicated to providing exceptional results so that you can feel confident with your coverage. T2Green offers specialized coverage options that are unique in the industry. With our exclusive program unlike anything else on the market, you can feel peace of mind with protection that is tailored to your club’s unique needs. T2Green is driven by innovation and responsiveness in both coverage solutions and customer service. We understand the challenges that are presented in varying locations and seasons to write policies for clubs from coast to coast and everywhere in between so you can operate with confidence, no matter what conditions arise. Reach us at 844-223-9005 with any questions or so we can begin tailoring a package that works best for your club.
