Monday November 23, 2009 11:36 PM ET
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SmartMoney Magazine by Maggie Dunphy and Dawn Wotapka

10 Things Your Country Club Won't Tell You

Below is an excerpt from the book "1,001 Things They Won't Tell You," which was published in May 2009 and highlights popular columns from SmartMoney's long-running "10 Things" feature.


1. “We’ll do just about anything to get you to join.”

You may think of country clubs as untouchable bastions of wealth and exclusivity. While that’s still the case with some, the industry as a whole has seen better days. Why don’t clubs have the same appeal as they once did?

People work longer hours, and the competition for their downtime is fierce. Plus, there are plenty of places to network these days, including upscale gyms. “[Country] clubs are finding themselves in this new position where they have to actively go out and pursue members,” says Rick Coyne, an executive director of the Professional Club Marketing Association.

The result: Many clubs are trying to bring in new members by cutting attractive deals. The Santa Rosa Golf & Country Club in Santa Rosa, Calif., for example, offers sliding fees for “young executives” under 40. And the Boca Pointe Country Club in Boca Raton, Fla., provides one- to three-month trial memberships for about $400 per month—no strings. If you don’t see a deal at your local country club, that doesn’t mean there isn’t one. Not all discounts are advertised, so just ask.

2. “Want out? It could take a while.”

Quitting your country club can be even harder than joining. Just ask Bob Husband, president of Heritage Golf Group, which owns 15 clubs. A longtime member of three clubs in Southern California (none of which Heritage owns), Husband decided that paying triple monthly dues and fees was too much, and he asked to quit one of the three. That was in 2003; in 2005 he was still No. 30 on a waiting list to leave. The catch: The club requires eight new members to join before any one person can quit.

A waitlist to leave is not uncommon at clubs, where members’ monthly fees are the primary source of income. While eight-to-one policies are an anomaly, it’s common for clubs to require one new member for each one that quits.

But there are some ways around it: Inquire about suspending membership until someone new joins. At the Quail Creek Country Club in Naples, Fla., a member can pay a year’s worth of dues, then become inactive until a new membership is sold. And some clubs will refund some or all of the initiation fee, which can be thousands of dollars, upon exit—but you may have to wait for the check until you’re out. Kathi Driggs, chief operating officer for the Club Managers Association of America, advises carefully researching a club before joining. “It’s a major decision,” she says.

3. “Just because we look posh doesn’t mean we have any money.”

In 2003 members of the Raleigh Country Club in Raleigh, N.C., were shocked when the club filed for Chapter 11 bankruptcy protection. They soon found out it owed about $7 million, much of it for ambitious renovations. An investor came in and rescued the club, but not before members sweated rumors that it was going to be turned into a subdivision. That same year, owners of Hunting Hills Country Club in Roanoke, Va., suffering from a decline in membership, were forced to sell the club’s golf course. They leased it back and continued running it, but only by slicing monthly dues and adding hundreds of new members.

Country clubs are businesses, too. How to know if your club, or the one you want to join, is financially sound? Chat with members—the gossipy ones. Look around. If routine maintenance is being ignored, that could be a red flag, says Frank Vain, president of McMahon Group, a private-club consultancy. Sure, the grass has been cut, but is worn carpeting being quickly replaced? Says Vain, “That really is a sign of the underlying financial strength of the club.” You can even ask to see the books. Some clubs will let potential members read their annual report.

1,001 Things They Won't Tell You

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User Comments
Posted by: redtape
Yes all the country clubs and are terrible places that are trying to deceive and cheat you.

Why do all your "10 Things...." columns seek to smear someone? Do they really deserve it, or does it just sell magizines?

I hope and trust that you will not join our little county club.
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