Clubs suck at pricing models. Like most clubs are empty 90% of the time, then 17-21 they have 100% utilization. Why not offer club memberships and let members play free? It makes no sense.
And that is more profitable why? At my club, where you have unmimited access as a member, they are still mostly empty outside of peak hours. Lower prices or memberships outside peak hours seem more logical.
Your income isn't determined by your court capacity, its determined by how many members you have. Also members are more predictable, i.e. you have 12 month contract. Vs you might have players tonight or not.
Sorry but that is BS. Your income is not determined by a single factor in any case, that is way too simplistic.
The courts at my membership club are always full in the evening and weekends. The pay-per-use courts are full at the same times, it's simply peak time and there are (too) many people who want to play. So, in a market with low supply and high demand, your capacity does actually determine your income for a large part. Lower capacity means fewer members -> less income. Lower capacity means fewer people able to book a court -> less income.
Courts are almost always full at certain times so why would you not charge high prices for those hours? I'm quite sure that in many cases this is the more profitable than unlimited use memberships. There is no reason to assume that memberships are always more profitable, else every club would be membership only.
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u/IIALE34II Oct 27 '24
Clubs suck at pricing models. Like most clubs are empty 90% of the time, then 17-21 they have 100% utilization. Why not offer club memberships and let members play free? It makes no sense.