Driving ranges make money by charging customers for golf balls and tee area rental to practice their swings. Buckets of balls cost around $20. By reselling the same balls repeatedly before needing replacement, driving ranges generate profit. Additional revenue streams like food, club rentals and lessons can significantly increase overall profits.
Impact of Location and Amenities
The location impacts potential business volume. While rural locations have lower property costs, urban settings draw more customers. An average range sees 20 golfers daily, yielding $120 in revenue. For a 6 month season that is $21,600 annually.
The amenities offered impact costs. More amenities mean higher construction and operation costs. But they also attract more customers who pay higher fees. Larger ranges with more bays and practice areas cost more but bring in more revenue.
A high end, full amenity urban indoor range with restaurant and event space can net $2.9 million annually. A basic rural range can earn as little as $40,000.
Range Specifications and Varied Revenues
Most ranges are over 300 yards long. Average amateur driving distance is 250 yards. So 300 yards accommodates most. For professionals allow 400+ yards. For "long drive" advertise 500+ yards. Rental bay width is 3 to 4 yards for ample swing room.
Revenue varies widely depending on location, amenities and services. Basic ranges earn far less than high end, tech focused concepts like TopGolf. Their franchises cost over $18 million. But they gross over $500 million annually with 1,300+ employees.