“Turnover Is Vanity, Profit Is Sanity” — But Golf Clubs Need Both to Truly Thrive

In the business of golf clubs—where hospitality, leisure, sport and tradition collide—few sayings are repeated as often as: “Turnover is vanity, profit is sanity.”

It’s a phrase with real weight. Too many clubs focus on how busy they look rather than how financially healthy they actually are. Packed diaries, busy bars and sold-out events don’t automatically translate into stability. But while the saying rings true, it’s also incomplete.

Because here’s the reality:

"You don’t bank percentages, you bank pounds"

And without strong turnover, even the best margin in the world won’t generate enough profit to sustain a modern golf club.

This is where boards, managers and committees must strike a smarter balance—understanding not just the importance of profit, but the essential role turnover plays in creating it.

When Turnover Becomes Vanity

Many golf clubs fall into the trap of chasing activity simply because it looks impressive:

• Big society groups

• Full-function calendars

• Popular carveries or themed nights

• Discounts to drive footfall

• Busy competition days

This kind of high activity can create a false sense of security. On paper, the tills look busy—but behind the scenes, the margins may be razor thin.

For example:

• A 100-person function might look profitable but collapse under overtime, food waste or heavy labour.

• A full tee sheet could be undermined by discounted green fees.

• A buzzing bar may see high sales but low net profit if cost of sales and labour aren't tightly controlled.

This is where the phrase “turnover is vanity” becomes painfully accurate. Turnover tells you how much is happening. Profit tells you how well it’s happening.

Why Profit Is the Long-Term Measure of Success

Profit reflects:

• Smart operational decisions

• Effective cost control

• Sustainable pricing

• Well-designed menus

• Efficient labour management

• Understanding member and visitor behaviour

Profit is what allows golf clubs to:

• Improve the golf course

• Invest in staff

• Upgrade facilities

• Modernise operations

• Absorb unexpected costs

• Secure financial stability

Simply put: Profit is the club’s ability to grow, survive and reinvest.

But here’s the important counterpoint…

Turnover Still Matters — More Than Some Clubs Realise

While profit is the key measure, you still need turnover to create meaningful profit.

The maths makes this clear:

• 60% profit on £20,000 turnover = £12,000 profit

• 70% profit on £12,000 turnover = £8,400 profit

Higher margin, lower return. Lower margin, still significantly higher return.

This demonstrates a critical truth: Focusing on percentages alone can lead to poor strategic decisions.

A low-turnover business with high margins is still a low-profit business.

Turnover feeds:

• Cash flow

• Momentum

• Member engagement

• Facility usage

• Future bookings

• Word of mouth

• Buying power

• Wage stability

A golf club with limited turnover will struggle to reinvest or evolve, even with perfect margins.

The Sweet Spot: High Turnover + Smart Margin Control

The most successful golf clubs aren’t just busy, and they aren’t just profitable—they are both.

They:

• Fill the diary with well-priced, well-planned events

• Drive society and visitor traffic at sustainable margins

• Engineer menus that lead members to high-margin dishes

• Run bars that balance premium products with profitable staples

• Use data to forecast staffing, reducing labour peaks

• Manage cost of sales with discipline

• Price competitively without eroding value

This isn’t “turnover OR profit. ”This is “turnover THAT CREATES profit.”

Beware Spreadsheet Management: Don’t Cut Capacity to Make Money

One of the biggest traps golf clubs fall into is over-optimising margins at the expense of opportunity.

Boards sometimes fixate on cost-cutting, labour percentages or theoretical models and end up reducing their capacity to generate revenue. For example:

• Cutting staff to reduce wages → slows service → reduces spend per head

• Reducing opening hours → kills bar revenue and clubhouse atmosphere

• Scaling down events to “protect margin” → results in less total profit

• Minimising product range → reduces upsell potential and member satisfaction

This is spreadsheet management: decisions that look good numerically, but damage the club’s real-world earning potential.

A golf club is a live environment, not a static financial model. The goal is not to shrink operations to fit a margin target—it is to run operations intelligently so margins and turnover rise together.

Volume vs. Margin: Understanding Their Relationship

Societies and visitors may operate at lower margin, but they:

• Boost bar and pro shop takings

• Create repeat custom

• Increase food and beverage spend

• Elevate clubhouse atmosphere

• Improve course utilisation

• Add long-term value

Events such as weddings, wakes, conferences and parties often generate substantial turnover. Even at moderate margins, they contribute meaningful cash to the bottom line.

A perfectly efficient club without turnover cannot succeed. A busy club with poor margin control also cannot succeed. A club that cuts too deeply to improve margins may unintentionally kill its earning power.

The answer lies in balance.

Busy bar at a golf club

Turnover Isn’t Vanity If It Converts

The original saying cautions us not to be blinded by big numbers. The counterpoint reminds us not to be misled by attractive percentages : don’t shrink your way to success.

Turnover becomes vanity when it isn’t managed. Turnover becomes sanity when it feeds sustainable profit. Profit becomes stability when capacity isn’t sacrificed in pursuit of margins.

Profit shows strength. Turnover provides power. Capacity fuels both.

In modern golf club management, the clubs that thrive are the ones that master this entire equation—not just one part of it.