lamebums
300 yards into the woods.
- Jul 4, 2007
- 646
- 4
This thought struck me over a few drinks with my father as we were having dinner tonight.
I was thinking, in the next year or two, to begin putting things into motion to opening up a driving range around here. I've already done a decent amount of research on this issue. I'm thinking of the area of Union, Kentucky because it's a lot of urban sprawl with just houses and new subdivisions, broken by the occasional shopping center. The closest golf course is Meadowood, about 12 minutes away, and the closest driving range is a similar distance. (I don't know about Lassing Pointe, or if it has a driving range or not, but I am talking about a dedicated, purpose-built driving range here.) The only driving ranges I know of in all of Northern Kentucky are the Fort Wright Driving Range and the Town and Country center, about 20 and 25 minutes away from my proposed place, respectively.
Land in underdeveloped areas is absurdly cheap - I am talking about $15,000 an acre or less (I have seen $12k). Assuming a 10 acre driving range (300 yards long plus about 150 yards wide - comes to about 8 acres plus space for a parking lot and a shed, totals 10. The entire cost of buying the land, putting down a parking lot (gravel seems to be cheaper, at least temporarily until the operation gets going), building a shed and getting the necessary equipment will run about $220,000, give or take, say, twenty percent. I'd cut corners by having mostly grass tees - having mats plus the accompanying shelters is just more money and it seems a lot of people prefer grass anyway.
Now, figure this: It will be the only driving range within ten minutes, all of the surrounding area will be suburban homes, so there would be a pretty solid market. If a hundred people a day show up (I am being extremely conservative), and buy say, a $10 bucket of balls on average, that would be a thousand dollars a day. More would show up on weekends and during the summer, but less in winter and on rainy days, so it would average out. Assuming it's pretty steady all year, that would be 36,000 customers, or $360,000 roughly.
$360,000 minus the costs - say $30,000 to the bank for paying off a loan, $20,000 a year in maintenance, mostly range balls and mechanical equipment, another $40,000 or so in part time workers to help staff the place, means I'd have about $270,000 in mad money before taxes. Each year. Doesn't seem like a bad idea to me. I'd be prepared to eat a loss the first few months, but the place would pay for itself in 1-3 years, after which I am simply skimming money off the top. Retiring at 22 sounds like a great idea to me...
Even if I'm being overly optimistic and only 50 people show up a day - I would still make $90,000 in profit each year. I am guessing the average of one hundred a day because the ranges I know around here are jammed at peak times, with about 40-50 people on them at any one time (more would come but the parking lot is too small).
Thoughts, comments, kudos, criticisms? Please go ahead. I am seriously considering this, so I'll take any advice I can get.
(Also I might let Shot Talkers in for free, eh...)
I was thinking, in the next year or two, to begin putting things into motion to opening up a driving range around here. I've already done a decent amount of research on this issue. I'm thinking of the area of Union, Kentucky because it's a lot of urban sprawl with just houses and new subdivisions, broken by the occasional shopping center. The closest golf course is Meadowood, about 12 minutes away, and the closest driving range is a similar distance. (I don't know about Lassing Pointe, or if it has a driving range or not, but I am talking about a dedicated, purpose-built driving range here.) The only driving ranges I know of in all of Northern Kentucky are the Fort Wright Driving Range and the Town and Country center, about 20 and 25 minutes away from my proposed place, respectively.
Land in underdeveloped areas is absurdly cheap - I am talking about $15,000 an acre or less (I have seen $12k). Assuming a 10 acre driving range (300 yards long plus about 150 yards wide - comes to about 8 acres plus space for a parking lot and a shed, totals 10. The entire cost of buying the land, putting down a parking lot (gravel seems to be cheaper, at least temporarily until the operation gets going), building a shed and getting the necessary equipment will run about $220,000, give or take, say, twenty percent. I'd cut corners by having mostly grass tees - having mats plus the accompanying shelters is just more money and it seems a lot of people prefer grass anyway.
Now, figure this: It will be the only driving range within ten minutes, all of the surrounding area will be suburban homes, so there would be a pretty solid market. If a hundred people a day show up (I am being extremely conservative), and buy say, a $10 bucket of balls on average, that would be a thousand dollars a day. More would show up on weekends and during the summer, but less in winter and on rainy days, so it would average out. Assuming it's pretty steady all year, that would be 36,000 customers, or $360,000 roughly.
$360,000 minus the costs - say $30,000 to the bank for paying off a loan, $20,000 a year in maintenance, mostly range balls and mechanical equipment, another $40,000 or so in part time workers to help staff the place, means I'd have about $270,000 in mad money before taxes. Each year. Doesn't seem like a bad idea to me. I'd be prepared to eat a loss the first few months, but the place would pay for itself in 1-3 years, after which I am simply skimming money off the top. Retiring at 22 sounds like a great idea to me...
Even if I'm being overly optimistic and only 50 people show up a day - I would still make $90,000 in profit each year. I am guessing the average of one hundred a day because the ranges I know around here are jammed at peak times, with about 40-50 people on them at any one time (more would come but the parking lot is too small).
Thoughts, comments, kudos, criticisms? Please go ahead. I am seriously considering this, so I'll take any advice I can get.
(Also I might let Shot Talkers in for free, eh...)