Building a pickleball business

6 reasons a pickleball player will join a pickleball club and pay

Why will pickleball players pay when many play for free right now?

Free and low cost pickleball courts do not provide the quality, court availability, amenities and other features the market is starting to demand. This simple fact has created a supply and demand issue vis a vis available court time. The creation of more indoor courts will provide what many picklers are looking for:

Court quality. Once you’ve played on a smooth, well-lined court and a firm, precisely positioned net structure, it’s hard to go back to the gym floor, cracked asphalt and temporary nets that most of us learned on.
Court availability. An increasing problem at public courts is over-crowding leading to longer wait times. Clubs can manage this process better than most open-play setups.
Optimizing play for various levels. At the park, open play can be great fun, but can also result in pitting players with huge disparities in skill. Open play will still exist, even at clubs because it’s fun and loose, but those wanting to play against their own level will enjoy more options.
Creative Programming. A successful pickleball club is providing a variety of player events and experiences beyond simple open-play.
Amenities. Things like temperature control, comfortable seating, easy access to food and beverages, retail gear, proper lighting, storage areas and showers create a more inviting experience.
Community. More structured community building efforts like charity tournaments, pro visits, specialty clinics and after-play events can be really fleshed out in a club setting.

Of course there will always be free or low cost play somewhere in your community. That’s great, it brings new folks into the sport! Some people will never choose to join or pay….but many will. There are also those who will do both. They will play at the public courts during nice weather and low-crowd times, but choose the club during bad weather and overcrowded times. If you are considering the launch of a pickleball center or pickleball club, you will need a strategy address court quality, court availability, level-play, programming, amenities and community.

Questions to address when launching the perfect pickleball club

How many courts makes sense?
What’s the best lighting, court and fence layout?
How much do I need amenities?
What’s the best booking system?
How do I maintain Creative programming?
Community building?
Indoor and outdoor options?
Membership or “pay to play” or a hybrid revenue model

We have assessed a variety of new Pickleball club operations to learn best practices and strategies. Cutting edge entrepreneurs are leading the way and cool tactics are emerging in each of these areas.

Pickleball Business Advisors is brothers Bill and John Pryor. We provide a variety of consulting services based on extensive experience in fitness business development, and research into the fast growing pickleball marketplace. To initiate a feasibility assessment for your pickleball club, or for other consulting, contact us so we can learn about your project.

Pickleball clubs: a variety of approaches are emerging

Over the past 6 months we have fielded dozens of inquiries, and engaged a number of entrepreneurs to consult around their planning and startup. We are struck by their energy and passion — but also by the wide range of strategies and visions we’ve encountered.

Locations

As an example, we have brainstormed the pluses, minuses and issues around a variety of potential locations

Standalone former retail buildings
Former movie theaters
Common areas of indoor malls that have withered
Industrial park warehouses
Airplane hangars
Building from scratch in parking lots
Re-structured office space
Purpose built from scratch
Indoor/Outdoor combined concepts

Scale

One of the first decisions is the scale of the operation. Some are considering 4 courts with almost no amenities, a stripped down mode. More commonly, we are working on plans for 8, 10 or 12 courts. We’ve also discussed 18-24 court models and the issues around that scale

Another key discussion related to scale is how much square footage and energy will be devoted to off-court activity. Notably food & beverage, but also common areas, retail, and ancillary activities.

Revenue and pricing

There is quite a divergence in approaches relative to revenue. Some folks are “all in” on recurring revenue in the form of memberships. They have players paying monthly dues for unlimited play and benefits. Others have determined “pay as you go” is a better model. We’ve analyzed both these approaches and a number of combined approaches as well. What we recommend depends on a number of factors: competition, demographics, personal vision and more.

Another issue related to revenue is the development of multiple revenue streams. We believe the more offerings you have, the more likely you are to optimize your sales and net income. We’ve done a lot of thinking about how to weave this approach into an overall business plan.

The wild wild west

The reality in this market is that it is early days. Hundreds or even thousands of new pickleball clubs will be opening in the next few years. Because it is early, there aren’t yet clear-cut, proven operating models. Innovative entrepreneurs are creating the market as we speak. As in any business, the operators that listen to their customers, adapt to their desires, and execute effectively will thrive. For true entrepreneurs this is gonna be a fun ride.

Considering profit in a pickleball business: two models.

How much revenue (and profit) should you project from a pickleball club? That depends. In the business plan for a pickleball club or center, different assumptions on the type of facility can result in dramatically different projections. There are multiple potential business models for this type of business. Here are two examples, one is a business driven by one primary success factor: filling courts. Another option is a large pickleball center where court revenue and court occupancy is one part of a larger concept involving multiple activities, often major food and beverage. Bigger is not necessarily better, there are pluses and minuses to each approach.

Starting a small community pickleball club based on filling courts

SCENARIO A
8-12 dedicated courts with creative emphasis on play. This is a small court-driven model with limited retail and food and beverage. In this model, the total monthly revenue can be projected by assessing a number of variables around court occupancy and pricing. Important note: creative programming can dramatically impact the revenue driven from courts. This is an area of considerable research by our team.

Court Rental factors:
X courts available X hours per day
X% occupancy rate
Other court usages and fees
Average hourly court rental fee
Other programming fees

Membership factors:
X members paying $XX per month
Levels of membership?
Benefits of membership?
Policies for cancel and change

Other Revenue Streams?
These could be critical especially if the court rental and membership fees don’t reliably cover your costs. Several owners have described surprising sources of revenue that weren’t in the origin plan. We’ve researched them and identified them.

A larger ‘lifestyle’ pickleball club

SCENARIO B
10-20 courts as part of complex with food & beverage and other activities. A large court and entertainment-driven model with significant other amenities: This model is driven more by food and beverage sales than by innovative Pickleball programming.

In this model, pickleball may play 2nd fiddle to the true driver of the business: revenues from food & alcohol surrounding an experience. This is less about fitness and more about dining, entertainment and significant non-court activity.

Profitability for different types of pickleball centers

Projecting pickleball revenue is one piece of the puzzle. In the end it is about profit. In the smaller, court-driven community pickleball center outlined above, the revenue is low, but so are expenses. It is also a much simpler business to run. Real estate costs and staffing costs, the 2 largest expense areas are much lower than operating a large facility to accommodate courts plus a full bar and restaurant. Net operating profit for the small center might be 20-35% of revenue….granted on a very small revenue base.

The larger pickleball / restaurant complex outlined above would expect much higher revenue, but also higher overhead, more staff, and the complexities of running a food and beverage operation. Profit potential here is more in the 15% to 20% range, but on a much larger revenue base.

To be successful with either model (or any model in between) still requires strong execution — Projecting revenue is one step….how to actually drive that revenue is the main operating strategy. Our specialty here is how to maximize revenue from courts, we believe strong niche fitness businesses can be built without the complexity of restaurant operations.

For updates on new blog posts and new ideas for pickleball club development:

Phases of new pickleball players

Confusion, Enlightenment, Education, Obsession, Lifestyle

Note: recent data from SFIA indicates there is currently a shortage of roughly 25,000 courts in the U.S. —- these courts are needed to fulfill demand. One interesting explanation of this incredible surge in demand, is to look at the phases a new pickleballer goes through. Think of your own experience!

By definition, every pickleball player has a first day, first week, first month, first year. Athletic levels vary, skill levels vary, ages vary, but I’ve observed a definable series of phases that new players experience. We all go through them at varying speeds and intensity.

Phase 1….CONFUSION

Yes, confusion. About the weird paddle and ball, about the kitchen line, about where to stand, about the scoring and about why it’s so popular! Hopefully the first folks you play with are gentle with their coaching and remember their own newbie confusion. The good news is that after a few awkward games, the confusion melts away, and you can just focus on hitting good shots. The fun stuff.

Phase 2….ENLIGHTENMENT

The game clicks, you realize a) how fun it can be and b) that with some work, you could be pretty good. While you occasionally hit amazing shots, you realize in this phase that other players hit more amazing shots than you do. Thus they are winning more than you. Hmmm there is more to this game than meets the eye initially. You can be good, but it’s going to take some work, and a ton of court time!

Phase 3…EDUCATION

So you start to educate yourself. By observing other players, by YouTube instruction, by reading and learning. Your initial education process tends to focus on the fundamentals of hitting good shots and on basic tactics (stay low, move your feet, vary speeds, learn drop shots, improve backhand, serve deep etc.). Once you make progress here, you realize that to beat good players, you also need to use strategy…aha!

Phase 4….OBSESSION

Once you cease to be confused, know where to stand, understand the rules, and start thinking strategically, something exhilarating happens: you start to hit amazing winning shots admired by your co-players. For many it is the only time in ANY sport that they have done something other players call amazing. It is really fun. This is the beginning of obsession (some would say addiction). A danger in this phase is playing so much you risk injury, or in some cases divorce. Be careful here.

Phase 5….LIFESTYLE

Not everyone makes it to this stage but many do. Your daily life, your travel and a major chunk of your mental energy and leisure time start to be heavily influenced pickleball. Here you download apps to find games, look at pickleball camps, cruises and vacations, and if you’re an entrepreneur you consider starting a pickleball business of some kind.

If you do end up starting a pickleball business, knowing these stages will help you develop tap into your customers’ needs as they move through the phases.

4 things you should think about if you decide to start a pickleball club

Over the past year, we have extensively researched the pickleball clubs that are blossoming around the country. We have also completed revenue assessments, feasibility assessment and business plan elements for a number of entrepreneurs.

No two clubs are the same, but the ones that have experienced success have a few things in common. They have done a good job of addressing ‘critical success factors’ that make a difference.

1) Programming

Successful clubs are not primarily court-rental businesses. They create loyal players through creative programming that optimizes inherently limited court availability. Programming ideas and required staffing need to be in your plan.

2) Revenue streams

Every club will have a variety of revenue streams and your vision for your facility will determine how each of these will impact overall profitability. The essence of a good club revenue plan addresses each revenue stream in detail and considers both the marketing and the execution.

3) Staffing

If you’ve started any modeling at all you’ve seen that after your monthly rent, the largest ongoing operating cost is staff. The starting point in assessing staff is to identify key business tasks and then determining how many people (and what kind of people) are needed. Important: what are YOU (the owner) going to do? The more you do, the less staff you need and the better your margin will be.

4) Targeting multiple markets

One of the reasons pickleball is exploding is because it’s attracting an incredible variety of ages and demographics. What other sport attracts kids, seniors, men, women, athletes, and non-athletes, from all income brackets? Hmmmm. This is great news if you’re opening a club, it also means you’ll need to think through a variety of marketing approaches for each segment.

Each time we visit somewhere to play, we learn a bit more about this market! Pickleball Business Advisors is brothers Bill and John Pryor. We provide a variety of consulting services based on extensive experience in fitness business development, and research into the fast growing pickleball marketplace. To initiate a feasibility assessment for your pickleball club, or for other consulting, contact us so we can learn about your project.

Pickleball across America (and Mexico)

Over the past 18 months, I’ve taken the opportunity to combine business, vacation, and personal travel with…..you guessed it, pickleball.

Armed only with my “Places to Play” app, 2 paddles, 2 balls and my sneakers, I set out to test the premise that a fun pickleball experience can be found anywhere — even for a total stranger walking into a new town or community. I am pleased to report that I was 100% successful in each effort, and that the pickleball culture embraced me with open arms. Though there were a few snarky curmudgeons at some courts, the vast majority of people were friendly, and welcoming of ‘the new guy’. Sample places I’ve played in the past 2 years:

Wilmington, Delaware (converted public tennis)
*Chestertown, Maryland (YMCA)
Fenway Park (yes, that Fenway Park)
*Shaker Heights, Ohio (converted public tennis)
Winnetka, Illinois (fancy country club)
*Kauai, Hawaii (dedicated courts)
*Pescadero, Mexico (converted local bball court)
Cabo San Lucas , Mexico (resort tennis court)
Tahoe City, California (converted public tennis)
Incline Village, Nevada (indoor and outdoor community center)
Groton, Connecticut (community center)
Mystic, Connecticut (YMCA and Indoor Sports Center)
Holly Hill, Florida (48 court dedicated pickle complex)
Orlando, Florida (dedicated indoor in converted retail / warehouse)
Wakefield, RI (4 court indoor converted warehouse)
Wautoma, Wisconsin (outdoor public park using dropped tennis net)
Stevens Point, Wisconsin (indoor sports center with newly designated pickle)

*Chestertown, Maryland

Eastern shore of Maryland……An unspoken condition for agreeing to visit my mother-in-law with my wife was that I be able to sneak away and find pickle. Sure enough, the brand spanking new Chestertown Y had no fewer than 8 courts lined out in their massive gym. My Connecticut Y membership got me in for free and I went several times for open play.

NOTES: Certain hours only, temporary nets, cool bleachers to watch play, 2 foot temporary fences between courts to restrain loose balls, informal round robin, players seemed to ‘self-level’ their groupings.

*Shaker Heights, Ohio

Cleveland suburb. Visiting my old college buddy who shares a recent pickleball obsession. His regular group meets at the recently converted local tennis courts at a middle school.

NOTES: Temporary nets, play can’t start til 9 am due to noise agreement with neighbors, stick your paddle in line in the chain link fence for rotation. Youngest player 11, oldest player 78. Great group

*Kauai, Hawaii

Our first ever trip to Hawaii and it was a challenge convincing my wife to leave beaches and hiking to play pickle, she has a bum shoulder and can’t play. But I succeeded by agreeing to visit botanical gardens (a good marriage involves creative compromises).

NOTES: I had 2 spectacular experiences. In Poipu Beach I played for the first time on 100% dedicated pickleball courts. So cool. In Princeville, a neighborhood of snowbirds had banded together to re-surface a local basketball court. Best view of my life from a pickleball court.

Both locations deployed the fairly standard ‘paddle rack’ rotation system to keep play flowing. Being Hawaii, both were used to out of town visitors.

*Pescadero, Mexico

Once again I had to negotiate a pass to leave my wife, daughter and grandchild to seek out pickle. This time in gritty inland Mexican village. Not a place I would have visited on my own but a google search revealed a Facebook page called “Pescadero Pickleball”. It hadn’t been posted on in a year but I took a shot and tried to find it. After driving through vegetable fields, sketchy looking farms and by roving chickens and stray dogs for miles, I suddenly heard the reassuring ‘plunk plunk plunk’ of pickleball.

NOTES: Snowbirds primarily from Seattle and Vancouver who stay at nearby resorts, had worked a deal with the town to convert their covered (thank god) basketball court to pickleball. AWESOME. Cost to play? 50 pesos ($2.98)

Pickleball at Fenway Park

As a long time Boston Red Sox Fan, I always dreamed of being able to say “I hit a ball off the Green Monster at Fenway Park.”. On July 14th (my birthday), I did. I hit one off the wall! Granted, it was a pickleball, and the stadium was largely empty…..but hey, it was a clean shot, I absolutely crushed it. It was awesome.

For three days a company called Pickle4 took over Fenway Park as part of their Ballpark Series where they are bringing pickleball to “….the hallowed grounds of America’s most iconic ballparks. Imagine the thrill of serving, volleying, and scoring on the same turf where legends have played……”. Sounds a bit crazy, but a few hundred of us were frolicking in the Fenway outfield. I’ve been in the stadium hundreds of times, this was the first time I touched the “hallowed ground”.

Pickleball for everyone

Over the 3 days of this event, there was an amateur tournament, a pro tournament, and open court rental for groups willing to pony up. My friend Chris had a connection at WEEI, one of the sponsoring media, so we got complimentary access to court #3 right at the base of the famous Green Monster. (p.s. Chris is stronger than me, he hit one OVER the wall which got him a reprimand from event organizers). It was all good, we played exactly where Carl Yastzremski, Jim Rice and Manny Ramirez stood. For Red Sox fans, that’s heady stuff.

We saw all types. Pros warming up, 4.5 amateurs of all ages, teenagers, thirty somethings, and of course a good dose of the 60+ crowd. Chris and I spent much of our time teaching the rules to a group of young WEEI employees who were fascinated to learn what all the fuss was about. We literally watched them go from complete confusion to fist-pumping ecstasy within a matter of an hour or two. We felt we were spreading the pickleball love to the next generation.

The publicity and profile of this event at Fenway were huge in raising the awareness of pickleball in New England’s biggest metro area. Pickleball is a unique sport where everyone can feel, if only for a brief moment like they can play like a real athlete. Being at Fenway park, supercharged that sensation.

Indoor Courts or Outdoor Courts?

You’re building a Pickleball club, and you want the most attractive court setup for building a loyal player base. Do you build indoor courts? Outdoor courts? Covered courts? Or some combination of the above. Well, it depends….but I’ve got a preference — you can skip to the end here and find out what it is.

Outdoor courts

Ok there is no question that playing outdoors, on a beautiful day, when the sun is at the correct angle, when there is no wind, when the temperature is 60-80 degrees, when the courts are dry and when there is no smoke in the air….is an awesome experience. Unfortunately, as a business owner, you have zero control over any of those factors.

The most beatiful outdoor pickleball courts I ever played on were in Princeville on the island of Kauai in Hawaii. Guess what, Princeville gets over 90 days of rain per year….if those courts were a business, at least 25% of the available court time would be eaten up by weather.

Indoor Courts

No, you cannot replicate the outdoor experience indoors, but you can create consistent, predictable, high-quality court conditions 365 days a year. You may lose some perfect-weather business to outside courts nearby, but there is a core of players who crave the regularity you can create with indoor courts. Indoor courts have a different financial profile in terms of build out and maintenance but at the end of the day, you control the experience.

Hybrid Courts

A middle ground, if your real estate permits, would be covered courts or courts with movable side-walls or curtains. This allows some play during bad weather, but also allows the fresh air experience under a roof in certain conditions.

Summary

The reality for most club starters, is that this decision will be driven by the real estate available in the area you are considering. That said, your core court strategy should be a solid base of indoor courts (or hybrid courts if they can be closed and climate controlled) that allow consistent, year-round play. If real estate permits you to supplement this with some outdoor courts, all the better. The better climate you live in, the more helpful outdoor options might be, but
I believe this ‘primarily indoor’ approach makes sense in virtually every region of the country. MORE IMPORTANT THAN INDOOR VS OUTDOOR COURTS is the community, programming and vibe you create at your club.

Pickleball Programming

Throughout this blog you’ll see references to “programming” as a critical success factor in pickleball clubs. We’re developing a full handbook on this topic, but here are 7 reasons we feel strongly it will impact business success if you’re considering a pickleball club.

Programming allows ‘court optimization’, the usage of your most precious asset: available court hours
Programming is a powerful tool for indoctrinating new players, the lifeblood of your business
Programming is one of the main ways to promote player interaction and nurture the community vibe that drives player loyalty
Programming as a way to infuse variety into the player experience
Programming helps accommodate players with different goals, abilities and expectations regarding pickleball
Effective programming will create a unique position and competitive advantage for your pickleball club
Programming can create important ancillary revenue streams to help your overall business.

Any Pickleball club business plan without a thoughtful approach to programming is ignoring an absolutely critical success factor.

Pickleball clubs, a flight to quality

As we scan the expanding universe of pickleball club development, we’re seeing what can be described as a ‘flight to quality’. This concept, used in the financial world, refers to a sudden and overwhelming market surge towards quality investments.

white and blue passenger airplane aerial photography — Flight to Quality

The majority of pickleball players across the country have primarily experienced a mediocre to low-quality pickleball experience. It is a testimony to the appeal of the game that it has grown despite this. Don’t get me wrong, I’ve loved my drop-in experience at the community center with the temporary nets, the taped lines over the basketball court and the random chaotic court rotation process……but now that I’ve visited some dedicated clubs I can see the appeal of where this is all going. And by the way, I’d be willing to pay.

The quality experience at a pickleball club

Court, net and lighting quality are only one small piece of the puzzle here. ‘Quality’ in the case of a pickleball club refers to the entire experience of the player from the very first interaction (usually online), through payment, booking , court play, amenities and maybe most important, the programming options available and the nurturing of a true community.

Any business plan for a pickleball club needs to thoroughly address the quality of the player experience as a key strategy. This has special implications for staffing and for marketing which will be key revenue drivers in any of the next generation of pickleball clubs. A few areas to consider:

The clarity and flexibility of your membership and pricing model
The simplicity and ease of booking and payment
Creative programming appealing to all levels of player
Community development initiatives

Pickleball Business Advisors is brothers Bill and John Pryor. We provide a variety of consulting services based on extensive experience in fitness business development, and research into the fast growing pickleball marketplace. To initiate a feasibility assessment for your pickleball club, or for other consulting, contact us so we can learn about your project.