For driving ranges, one’s saleable inventory is not a physical product; it is the number of bays and the hours they are available for use (let’s call these “bay-hours”). Each bay hour represents potential revenue, and each hour sold converts this to actual revenue (let’s call this “volume,” and we will address this in the next of the series).
Therefore, one way to increase profitability is for range operators to increase their bay-hours by increasing the number of bays per hour that are available for sale or by extending their hours of operation.
Unlike a retail business where unsold goods can be stored for later sale, unused bay-hours represent permanently lost revenue.
When demand consistently exceeds supply, increasing the number of physical bays available for sale is the most effective way to expand your bay-hour inventory. Options include:
Adding new bays is potentially the most expensive option for increasing your inventory. Therefore, it is crucial to consider whether these new bays will be as attractive and valuable to customers as the existing bays, and whether there are any planning or regulatory constraints.
This tactic has been used very well by a number of Inrange partners, however planning permission as well as the opportunity cost of closing the range or parts of the range in order to do the development often poses a material constraint.
Maximising inventory doesn’t always mean adding new space, it can mean optimising how existing bays are used:
This tactic was used to amazing effect by one of our partner ranges where they opened up their 8 coaching bays for use in the evenings which in effect increased their bay-hours by 960 hours per month (8 x 4 x 30).
If physical expansion isn’t feasible and you have demonstrated demand at the fringes of your opening times then increasing bay-hours available is an obvious next best option. Considerations include:
We have seen year on year evidence of sustained play volumes throughout the cold season at a large number of our partner facilities who have leaned into the above.
Once you have demonstrated to yourself, your players and perhaps your investors that the range business is a great one and that you have a demonstrated ability to run yours profitably then the next exciting opportunity is to expand your brand into a new site. This could either be:
Our partners in Sydney, Australia, provide a compelling example of how strategic site acquisition can drive long-term success. Recognising the growing demand for premium golf and entertainment experiences in urban areas, they acquired land in a prime urban location and built a compact, high-footfall range that optimised both space and profitability.
Before expanding bay-hour inventory, its crucial to track key performance indicators (KPIs) to ensure the investment is justified. Metrics like bay utilisation rate, peak vs. off peak occupancy, and revenue per bay per hour will offer valuable insights into where additional bay-hours can drive the most impact.