alosso and WGTdbloshoe:
I just did a review of The Peoples Club membership. Out of 250 members; there are only 31 members I can positively say have bought a pass or have used more than 1 a day on average. It is as well totally possible that up to 67 members have either (1) played 2 passes on some days or (2) bought a pass at least once. 183 members have absolutely never bought a pass.
From what I can garner The Peoples Club members buy about 30 CC Passes a day out of our 250 members.
With those numbers in mind I did a calculation to determine if it makes economic sense for WGT to give two passes to each CC member at the start of the new day (midnight GMT).
These calculations assume:
1) The average player of a CC Pass plays a 9 hole round;
2) The average player of a CC Pass purchases a ball that costs 400 credits a sleeve;
3) The average player in The Peoples Club is similar to the average player in other CCs.
With those thoughts in mind; the average player spends about 27 credits on ball wear when playing a free pass.
So if WGT gave out 2 free passes at midnight GMT the quick analysis would be that WGT is losing 10 credits (27 cr in ball uses versus buying a pass at 37 cr).
The quick analysis however is wrong.
This is true even in a very active Country Club like The Peoples Club.
The reason is simple:
1) Free passes are not negative income to WGT as it costs WGT nothing;
2) Real income to WGT comes from ball usage (27 cr) and CC members buying passes (37 cr).
In The Peoples Club has 250 members and the total membership buy about 30 passes a day. Another way of looking at it 12% buy a CC pass and 88% do not buy one.
The question for WGT profit line then becomes a simple one:
Would the group that never buys a second pass play more and offset the one lost purchase of a pass by those who are now buying their second one on a daily basis?
WGT would lose about 300 credits a day giving 2 passes at midnight GMT to members of The Peoples Club, BUT, stand to gain somepercentage of 5,940 credits on ball usage.
The math is pretty clear – it takes just 12 of the 220 members of The Peoples Club playing just one of their free ones daily as of now to play one more round using their second free pass for WGT to make more than lost in sales of CC passes.