Topgolf
How Topgolf inverted the driving range model by charging per bay instead of per bucket and turning golf into entertainment.
In 2000, Topgolf solved a problem. Driving ranges charged $10 per bucket of 50 balls. Customers hit balls and left. Revenue was minimal. Topgolf inverted the model. Charge per bay, not per bucket. Include food, drinks, games. Make it entertainment instead of just practice. An hour at a bay cost $25 to $50. Average customer spending exceeded $60 per visit. Non-Golf revenue comprised over 50% of total revenue. A traditional range made money on balls. Topgolf made money on time, experience and ancillary purchases. Customers came for golf but paid for entertainment. The economics were completely different from legacy driving ranges and businesses. Callaway, the golf equipment company recognized the pattern.
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