Editor's note: This is the third in a five-part series that analyzes the best strategies for driving ranges and was previously published by Inrange.
Price is one of the most powerful levers for driving range operators to maximise revenue while ensuring a compelling customer experience. A well-structured pricing model balances accessibility with profitability, encouraging repeat visits while optimizing peak and off-peak utilization. We’ve developed a product suite that allows our customers to price per player or group type. Inrange allows our customers to maximize their revenue per bay-hour by looking at the three core customer demographics namely, practice, entertainment and multi-bay group events, each with its own tailored product and pricing model.
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The Role of Pricing in Customer Engagement and Growth
Pricing isn’t just about setting a number — it’s about shaping your offering to align with the price sensitivity of different customer groups. A strategic pricing approach includes:
- Maximize revenue per bay hour through inventory, player and product segmentation.
- Premium product for a premium price, ensure that the full product experience (balls, mats, heating, tech, food and beverage, customer service) is premium and then be comfortable to align the price to that product experience.
- Utilise dynamic pricing by adjusting the price based on demand across days of the week and day parts (eg peak and off peak).
- Encourage return visits by ensuring pricing is set at a level that feels appropriate and encourages repeat bookings.
- Hourly pricing using online booking and bay management systems.
Pricing strategy aims to maximize revenue per bay hour — not just by selling more hours, but by increasing their value. This creates a natural tension between volume and profitability. A successful model balances accessibility for customers with business growth, considering both total hours sold and revenue per hour.
1. Customer segmentation and price sensitivity
Not all customers visit a driving range for the same reason, and their willingness to pay varies based on their intent. A well-structured pricing model accounts for these differences, ensuring the right balance between accessibility and revenue maximization. Its important to understand ‘anchoring’ as a key concept when looking at price sensitivity. This refers to how customers evaluate the value of our product by comparing it to something else. Different customer segments will anchor their value perception to different things.
- Golfers (Highest Price Sensitivity) — Focused on practice, these customers are highly price-conscious and likely to anchor their perception of value to the prices of nearby ranges. Competitive pricing and discounts for frequent visits help retain this segment.
- Social Players (Moderate Price Sensitivity) — Casual golfers and social groups prioritize the experience over cost. This segment anchors their value perception to other social activities like a movie or meal out which is why the experience needs to be compelling. They respond well to added amenities like comfortable seating, food and beverage options, and tech-driven gameplay.
- Event Customers (Lowest Price Sensitivity) — Typically booking with a company card or as part of an organised event, these customers prioritize convenience, exclusivity, and premium experiences. Their value perception is anchored to the cost of other corporate events, function centers, or renting out restaurants. They are willing to pay more for reserved spaces, bespoke services, and add-ons like catering and event management.
2. Inventory Pricing to Reflect a more Premium Experience
Customers are willing to pay more for a superior experience (and be seen to be paying for that either within their group or by other groups). Inventory based pricing ensures accessibility while driving premium spend:
- Standard Bays: Entry-level pricing for casual golfers or groups.
- Coaching bays: Bays designed for coaching that include launch monitors.
- Larger Group Bays: Allowing for more players and could include more expansive seating and audiovisual components.
- VIP Bays: Premium pricing for private session or events and often would include the most premium seating, audio-visual and customer service to bays.
3. Optimising Pricing per day of week or time of day (Dynamic Pricing):
- Demand-Based Adjustments — There is higher pricing during peak hours maximises revenue, while discounted off-peak rates attract customers during quieter times. It should be noted that our best range operators tend not to use discounts but rather base prices and peak time premium prices to maintain the premium feel of their product.
- Incentives for Repeat Visits — Bundled session packages, loyalty programmes, and targeted discounts help retain golfers and social players while encouraging repeat business from event customers through tailored packages.
4. Loyalty Incentives & Bundled Promotional Offers
Recurring revenue streams build income predictability and can support your more frequent players by allowing them to obtain pricing discounts while less regular players pay a higher premium:
- Loyalty incentives rewarding frequent play with special rates through discounted bundles or access to membership schemes.
- Corporate packages designed for repeat group bookings and including certain packaged corporate benefits.
5. Smart bundling and promotions encourage higher spend per visit:
- F&B bundles to increase dwell time and secondary spend, offer in bay service.
- Family and group discounts to attract larger audiences.
- Limited-time promotions and events driving urgency and engagement.
6. Hourly pricing
Imagine a driving range that previously sold buckets of 100 balls for $30. During peak times, customers might purchase a bucket and stay for a long time, effectively blocking the bay for other potential customers. By switching to hourly pricing, the range could charge $30 for an hour in the bay. Customers could still hit 100 balls (or more) within that hour, but they would be constrained to the time slot, allowing the range to maximize revenue and accommodate more customers during peak periods. In off-peak times, the range could offer discounts or allow customers to extend their time if bays are available.
A well-executed pricing strategy is essential for driving revenue growth and customer retention. By leveraging dynamic pricing, tiered offerings, and strategic promotions, driving ranges can create a sustainable model that keeps customers engaged while maximizing profitability.
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