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Ask The Expert: John Beurskens
03/04/2011
John Beurskens, CMP
Eagle Oaks Golf & Country Club
Farmingdale, NJ 07727
(732) 938-9696 ext. 311
John Beurskens is Assistant General Manager/Director of Membership and Marketing for Eagle Oaks Golf & Country Club, one of the premiere full-service, family-oriented golf and country clubs in Monmouth County. John has been with Eagle Oaks since 2004, and is responsible for membership and marketing initiatives, as well as assisting with the general management of the club to ensure that members receive top caliber services. He is a member of the Professional Club MarketingAssociation, and has received his Level 5 Certification.
Can you shed some light on the distinctions between the various types of private golf and country clubs for our Living In readers?
Typically, there are two types of private clubs: a “golf club” and a “golf and country club.” A golf club is primarily focused only on golf and the basic amenities associated with it. A golf and country club is usually more family-focused, with a wider array of amenities – golf, tennis, pool, spa services, dining, etc. Because of these additional amenities, golf and country clubs have more family-oriented event and program options. There are further distinctions. The two most prevalent types of ownership in our area are “member-owned” and “privately owned” clubs. A member-owned club usually has a non-refundable entry fee, called an initiation fee, and sometimes a small bond (partially refundable). They are governed by an elected Board of Directors along with various committees that usually change every year or so. In a member-owned club, any annual budget shortfalls are paid for by the membership in the form of an assessment. “A privately owned club typically has a refundable entry fee (a membership deposit) and is governed by an owner or small group of owners, so committee involvement plays a much smaller role. Less committees steering is a good thing when the club’s ownership and management are intimately involved. Some of the best clubs in the world are “benevolent dictatorships.” Privately owned clubs historically do not have assessments, so they bear all operating and capital costs. Regardless of which type of private club it may be, you will likely need to be sponsored or recommended by current members to be considered for membership.
Obviously, there is a fee structure. What important financial factors should be taken into consideration when deciding which club to choose?
Fee structures vary drastically, but usually consist of a one-time entry fee – either refundable, non-refundable, or a combination; annual dues; pre-paid restaurant minimum; and ancillary fees based on usage, such as carts, guest greens fees, caddie fees, etc. The more prestigious or exclusive clubs have fees ranging from the mid-teens to $85,000 and above. If it’s refundable, find out, for instance, if it’s refunded based on a ratio of new member inflow or if the club requires a certain number of members before any refunds are given. Annual dues can range from $5,000 to $18,000. Some clubs require monthly payments, while others may ask for payment in full prior to the membership year. Prepaid restaurant minimums may be annual, quarterly, or monthly, and must be used within that specific time frame. Be sure to ask for a list of ancillary fees.
What other things should a prospective member consider when making a selection?
While golf is usually the underlying motivation for joining, be sure to look for what fits your personal preferences or needs. Probably the most important factor, aside from price, is determining what you’re looking to get out of club membership. Do you want a “family affair” or a “men’s club?” Is it a home-away-from home full-service club or just a place to play golf? Understand the club’s culture and demographics. Are families with young children welcomed? Does the club host family-focused events and programs? Is the average age 50 or 70? In this area, an average member age of 52 is considered a young club. Is the membership [as a whole] relaxed and friendly or is the atmosphere more formal and traditional? Also consider the level of difficulty of the golf course, the urrent number of members, the total number of members allowed, special events planned or its members, and, of course, the food quality. One of the knocks I’ve heard about joining a private club is that you have to play the same course, but as I once heard it put, “Wouldn’t you enjoy driving a Ferrari everyday?”
With the state of the economy, are clubs likely to offer discounts or special deals?
I’m sure some will, but it is important to know why they are doing so. Have they just lost members and are looking to replace them? Are they in financially dire straits? From my experience in this industry, it is important that a club maintain its entry fee and dues line integrity. If a club lowers its entry fee significantly, how would that make existing members feel? When clubs are set up to succeed through a diversified business model, those with a family focus will likely continue to flourish. My recommendation is to find the club that best fits your needs instead of looking for the best deal or discount. In the end, what good is a deal if you don’t get what you want?
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