But your only thinking in terms of that business as an isolated entity. When in fact there are things like location, what are the prices of the other golf courses around them, are they looking for repeat customers. Is the price low enough that no matter what, someone will come out and play because all the other courses are packed. There's alot more to consider. Also consider this.
think of it this way, lets say they get 100 golfers in a day, that's 25 foursomes
For the $25 dollar model, you get $2500 dollars
So what would be the amount of people needed to reach $2500 dollars under the $34 dollar model, 74 golfers. 6.5 less foursomes. So unless they don't see a 26.5% drop in golfers, they will make more money under the $34 dollar model.
That's the beauty of math, you can up the value, as long as you don't see a larger percentage drop in customers as you do in the percentage increase in price, you will make more money.
Not true. In fact I mentioned competition in the passage you quoted. I understand the various decision making variables.
If there are few courses in the area they can get away with this policy which is a good business decision. I understand the math but personally if a course I played lowered conditions and raised rates that much, I'd stop playing unless there is no decent alternative which may be the case. We don't have a lot of information on this situation. It would be good if the course owner came out and said that this is needed to complete the renovations and that it's an investment towards a better golfing experience in the future.
I'm in the Metro Detroit area where there is no shortage of quality public golf. If a course did that here it would quickly go out of business.