Business Model for "Rental" Launch Monitor

[SoonerChris]

Hello all, I am new to the forum, but from Google this is the BEST forum for launch monitors/sims/etc.

I'll be posting in the introduction section but wanted to get my question out first.

I've been thinking of trying to create a business model to rent a launch monitor. As just in the past month have utilized Trackman for a driver fitting for the first time. My thought was to utilize the unit on a "rental" basis at the local country club (only one in town) and at the only driving range in town. I think I would get full cooperation from both facilities. I guess my question is in relation to equipment. IF money wasn't an issue, I would buy the Trackman with all the bells and whistles, however, I would like to minimize my costs. Based on the limited knowledge of golfers in the "high tech" analyzers and such, my thought was to get either the FlightScope x2 or the ForeSight GC2 w/ HMT as they are around $10K less than the TrackMan.

As well, I believe the FlightScope has some "games" that could add the rental income. I don't believe ForeSight has anything like that.

Do the members here think a "rental" business plan would work? I think with golfer today looking for the best equipment for them, they would be interested in using it. However, would the "new" wear off?

[orangeTANG]

Interesting question. I think there would be quite a bit of interest, the problem is the initial startup cost. If a machine is $10k to purchase it will take quite a number of rentals before it paid itself off, and that's if it doesn't break first.

Of course, you'd have to rent the machine cheaper than what it would cost to go for a proper club fitting that has one for use (if that option is available in your area) but around here a number of the club-fitters have access to these machines, so for $100 you have your fitting through machine data.

I think you'd need to sit down and really look over the numbers and understand your rental price point before you could really determine if there is a proper business model. For example, would the same person rent it once, twice, monthly, weekly etc. How many people would rent it if it was $60 / hour, $40 / hour, $30 / hour etc, and from that data you could figure out your ROI, and your business case.

Also, don't forget to calculate your time invested. Obviously you'll be spending time setting it up and explaining what all the numbers mean at each rental.

[pingB]

If you are renting out a bay where they can use this equipment it could be lucrative, but as someone who is in the rental business (having nothing to do with golf tho) believe me when I say VOLUME is the only way to make money doing it.

I think it would be too difficult to rent the unit for people to take home with them and set up as there is quite a bit of setup involved with most sims.

But maybe if you had like 3 - 4 of them in bays or somewhere and charged people a per hour rent with 1 employee or just yourself to run the systems and troubleshoot if problems arise. It could be a very lucrative business.

People do this sort of thing indoors in the north. It's finding it's way to the south in the form of bars with simulator bays.

[SoonerChris]

A little more info.

Live in a small town with only 2 places to hit practice balls and closest club fitter with a monitor is at least 1 and half hours away. Could possible make arrangements with the pro from the club and the manager of the range to "setup" for customers. Would obviously have to give a small cut to those people for setup. No indoor facilities in town so would always be used outdoors.

To be honest, I'm trying to offset the cost of the unit for my use by exploring the rental portion. If any extra cash was made, it would be great.

[wbealsd]

SoonerChris - Have you ever owned a business? If not, and since it sounds like you really want to play indoor golf more than you want to start a business, then I suggest you spend some more time on this forum learning about your options. You may be able purchase a less expensive system than the ones you're considering that will satisfy your personal needs without needing to start a business to pay for it.

As jterpstr & PingB recommended above, you need to come up with a detailed business plan and firm commitments at locations willing to "host" your business, if that's want you want to do. Starting a business is NOT free and it will place your system, and perhaps other assets, at RISK if your business fails.

For what it's worth, I got my GC2 in a great package deal that included everything but the impact screen and putting/hitting turf from an indoor golf simulator business that wasn't able to stay in business. The last thing you want to do is put your assets at risk by compromising your purchase to get something you think is commercial but isn't what you really wanted in the first place.

[SoonerChris]

Let me qualify a couple of things. I'm really looking for a way to augment the cost of the unit as I don't have the capital to buy something like this outright. My thought was to rent it out with the help of the golf pro (Non-PGA) and the local driving range manager. I'm not looking for a full blown business, just a small number of people unless the need grows.

I am going to do some type of marketing analysis and if the analysis shows a large demand I will explore further an actual business and do the due diligence required.

My thought was to run this kind of like a club building outfit, if that helps.

As well, I am on the board of directors at the country club and am in discussion with the general manager as buying one as a potential revenue stream. Has anyone ever been a member of a club that had a launch monitor onsite?

[bubba22]

My club has a launch monitor and a sensor based simulator onsite. What is the question?

[SoonerChris]

My club has a launch monitor and a sensor based simulator onsite. What is the question?

Does your club charge for use? Has it been beneficial to club revenue?

[bubba22]

Yes they charge. I think it has been ok. Can't say they have made millions.

[pingB]

My club has this roaming titleist fitting thing that shows up once a month. They don't charge anything, but they do try to sell you titleist clubs..

There is never a real high demand for club fitting purpose since it's not something you do real often.

I would talk to the pro and see if he'd be interested in using it in his training and for training purposes. It probably has some good uses in that regard. Plus if he does fitting sessions he can use it then as well.

You have to also consider the price will make or break the deal as far as rental. A country club can certainly afford a GC2 if they wanted one. So you'll probably have to take pennies and hope that there is a large demand for it's use. So if your pro is charging a student 65$ an hour it's probably doubtful that he'd want to rent the gc2 for 30$/hour. You might be able to build some interest out of it at 5$/hour or something like that.

Just like any business though it can go bad. You can speculate and plan all day, but w/out actually owning one and putting it to use you wont know what the real demand will be. So be prepared to eat the costs.

Maybe there is a way you can finance it.

[jwm]

Chris, I've seen you posting on this thread and other forums as well. I'm in a similar situation and feel guilty that I want this high dollar item that only I and my buddies will use. I've learned to think about it in another way. If I spend X on say a Flightscope or GC2 it will most likely retain at least 1/3-1/2 its value in 3-4 years. I still see older Kudu and Prime versions of the Flightscope selling for 4k on ebay. So I'm spending a little over 1k to possibly 2k a year to use it as long as I don't break it. I would probably pay that to rent it if somebody offered when I'm stir crazy in the winter. A little easier to stomach mentally than 9k and a lot easier than trying to turn a hobby into a business.