2016 Annual Pass & Green fee increases as suggested by:

G & L Golf, Inc.

Grant Dalpes, PGA
General Manager
Desert Lakes Golf Course
Overview
The following suggested rate increases were developed from historical usage of Desert Lakes; survey's of golf
courses in the area that are similar in philosophy and customer base to Desert Lakes; studies by the PGA of
America, National Golf Foundation & NGCOA on the current state of golf participation in the area as well as
around the country; and common sense as to creating a rate increase that does not have an adverse effect on play
and participation.
Rates have not been raised in recent years (since 2012) because the aboA'e mentioned local and national surveys
and studies have indicated that a downturn in golf and the economy did not justify raising rates. As well, the
belief was that to do so would possible hurt overall revenue instead of help it. Studies now show an uptick in
golf and recreational activities and coupled with the length of time since the last increase, we believe it is time
for a raise in fees.
To achieve a rate increase we would simply increase all rates by adding tax instead of absorbing tax.
In the past we have always included tax and then backed it out through an elaborate spread sheet designed to
figure the Governmental tax (COA) verses the private industry tax (G & L). Tax was included to accommodate
the consumer when paying with cash. In today's day and age more people pay with debit or credit cards so the
need for flat rates and ease at the point of sale is not as great.
Additionally, the rate structure that currently exists has been simplified from those in the past by reducing the
types of rates available to purchase. Simplifying the rate structure increases the likelihood of achieving an
"effective rate" and makes it easier for the consumer to understand. Industry standards suggest fewer rates and
more packaging to promote play; something we have aggressively done over the years.
G & L Golf, Inc. believes that we should continue to simplify the rate structure even farther by elimination of
the "Non Resident" rate for green fees and continue to move toward one rate. According to surveys we do
annually, we cannot find any New Mexico courses that still have non-resident rates.

Desert Lakes Golf Course - 2351 Hamilton Road - Alamogordo, NM 88310

(505)437-0290 - Fax: (505)437-0324 www.desertlakesgolf.com

Additionally, we are not currently on any national tee time platforms that markets our tee times. These
platforms require a trade of tee times or a 25% commission on tee times made. Although G & L Golf does not
agree with the trade tee times we believe we should try the commissioned tee times because these platforms
could help us develop and market unused tee times as well as market to those outside the area and region. These
commissions will only be paid on tee times made through the platform. GoliNow, the provider of this platform
has agreed to allow us into a non-binding agreement that will enable us to cancel if we see this as detrimental to
revenue. G & L Golf has already studied and researched it and we believe this could generate new revenue as
opposed to losing revenue. It is not a discount platform, it is simply a marketing platform.
Requested actions:
1, Approve the Rate Proposal attached.
2, Approve the use of the GolfNow platform to market tee times and pay a 25% commission on those tee times.
Effective Date for new rates would be July 1, 2016. GolfNow platform would take 2-4 weeks to get up and
running.

Inclusions:
Attachment #1 - All Fee increases
In the attachment, the impact is figured by multiplying the original tax that was included to the number of fees
estimated. We also have estimated the number of fees at 95% of the average as a protection in case a rate
increase effects play adversely, which we do not believe will be the case.

Desert Lakes Golf Course 2351 Hamilton Road Alamogordo, NM 88310

(505)437-0290 Fax: (505)437-0324 wmv.desertlakesgolf.com

Desert Lakes Golf Course

Proposed Rate
July 1,2016
Proposed Green Fee Increase

9 Hole Adult
I 9 Hole Adult Non-Res
9 Hole Junior
| 9 Hole Junior Noil-Res ,
9 Hole Senior
| 9 Hole Senior Non-Res
IS Hole Adult
| 1'S Hole Adult Non-Res/,
18 Hole Junior
| IS Hole Junior Non-Res
18 Hole Senior
| 18 Hole Senior Non-Res

Proposed
increase w tav

2012-201S
Rates

Description

$
S
S
.$ .
S
'S.;. ,
$
$
$
$ .'
$
$:

11.00 S
12.00V
1

5.00

'

11.88
'

'

,6.00 :
10.00 $
11.00-'
22.00 $
24.00
10.00 $
-.12.00 - . ; '
20.00 $
22,00;

'

': ' , '

Sales @
95%
48S7

'.- . 0. : .

5.40

400

10.80

3200

23.76

3106

10.80

10

>
21.60

2062

COA Impact

3,166.78

118.52

1,896.30

' .' ' ' iiiBii

: : ., | ., : ..,,,,,, T .,,,. 1

.I-::-;"- :-,:. !1
$ 4,049.30
1 '. ' IMHH3
S

5.93

:. ' "

tfUfflSHflfl

S 2,443.85
- - . -.-:';--l
S U, 680.67

Proposed Golf Pass Increase

2012-20IS
Rates

Description

Proposed
increase

Sales @
95%

18
Annual 2 Senior
$ 1,255.00 $ 1,355.40
340.00 S
907.20
78
Annual Senior
S
3
Annual 2 Adult
$ 1,395.00 $ 1,506,60
930.00 $ 1,004.40
23
Annual Adult
$
5
Business Pass
S 1,625.00 $ 1,755.00
Summer Pass to April thru September from May thru September
710.00 $
766,80
7
Summer 2 Adult
S
34
475.00 S
513.00
Summer Adult
S
Winter Pass to October thru March from November thru March
1
710.00 $
766.80
Winter 2 Adult
S
513.00
15
475.00 $
Winter Adult
S

Proposed Private Carts

Shed Fees
Trail Fees

275.00
700.00

$
S

297.00
756.00

Rates Controlled by Golf Professional

6.00
9 Hole Carts
S
12.00
18 Hole Carts
$

S
$

Small Range
Large Range
Extra Large Range

$
$
S

Total Impact on revenue

S
$

$
$
$

4.00
6.00
8.00

$
S
$
$
S

1,255.00
3,640.00
232.50
1,188.33
451.39

$
$

276.11
903.82

$
$

49.31
395.83

8,392.29

0
0

6.48
12.96

8170
773

$
$
$

1,452.44
274.93
1,727.38

4.32
6.48
8.50

4609
4006
263

$
$
$
$

546.28
712.09
62.22
1,320.59

GoIfPass
Green Fees
Private Carts
Carts
Range

S
S

S 8,392.29
$ 11,680.67
S
$ 1,727.38
$ 1,320.59
$ 23,120.93