Don’t you just love cruising the grassy green fields of a golf course on an innovative golf cart? If yes, did you know that this mode of transport is a pocket-heavy purchase? You might have considered investing in this mode of transportation to complete your golf kit ensemble. Then subsequently realized how expensive these carts are.
While many golf courses come equipped with golf carts, they are pretty limited in number due to the price.
A golf cart may be considered a luxury item or a must for some people, depending on their level of fitness or the state of their physical health.
However, purchasing one of these carts could prove to be a challenging and expensive endeavor for some people.
It is essential to bear in mind that people use the golf cart for transportation outside the confines of the golf field. This low-speed, low-capacity vehicle is quite helpful. One may easily adapt it for use in a variety of large venues where people need to be transferred swiftly from one area to another. For example, a movie lot. Or those fancy Hollywood parties.
Then again, many wonder why buying a golf cart isn’t the same as purchasing a car, so why is it so heavy on the packet? Read on to find out why!
Top 9 Reasons Why a Golf Cart Is Such a Large Investment
Did you know that golf carts are the most effective mode of transport during a game of golf? However, many people can’t help but wonder – why are golf carts so expensive? Could it be because of the type of technology that the manufacturer uses? Or is it the idea that golf is typically a rich people sport, so the associated items should be costly too?
Well, there are a number of factors associated with the price of a golf cart, so let’s check out what contributes to its price.
1. Historical Significance
Golf carts have a lengthy and illustrious history that dates back to the 1930s. The average round of golf back then consisted of 18 holes over a vast plot of square footage and took a couple of hours to finish.
Due to the fact that players had to walk the course, golf was a challenging sport for individuals who suffered from physical disabilities. So to accommodate these players, the golf cart came into play. However, the number of disabled players was in the minority, so to offset the cost of creating them for such a small number of people, they had to sell them for a high price.
Furthermore, they were created for newbies. People new to the game had the chance to learn while traveling around a golf course since many courses even allow people who aren’t golfers to ride in the golf carts.
2. They Are Considered a Big Ticket Commodity
As with a house or a car, a golf cart is not something a customer often needs to repair.
Most golf carts have sturdy designs, are simple to repair (although the markup on these repairs is often relatively high), and can almost always be replaced with components of a higher quality. Thus, since it is essentially a lifetime investment that will last you a long time, the cost of buying them is pretty high.
3. Purpose Built Targeting Niches
The term “niche-purpose product” is often used among industry professionals to describe golf carts. So what is the meaning of this fancy phrase?
In simple English, it describes a product that has a relatively limited market and a small number of potential consumers who may be interested in purchasing it. Additionally, it suggests a product with a small number of competitors in the market.
Compare and contrast this with a standard piece of domestic equipment, such as a television, to better understand the difference.
To put it another way, only specific categories of people are likely to be interested in purchasing a golf cart. Increasing the price of their products is the only way for manufacturers to ensure they make the most significant profit possible from their wares.
Is there a logical explanation for these costs? It depends on the situation. Without it, many companies that make golf carts undoubtedly wouldn’t be able to be successful. Although the extra cost they bring to the cart is minor compared to the costs of other components. It is still something you should consider when considering buying your cart.
4. It Is a Demand for Those Who Can Afford It
Golf carts are in high demand as a result of the fact that they are one of the pieces of equipment that are employed on a golf course the majority of the time.
The truth of the matter is golf is a sport for the elite. The moment you hear golf, you think and picture the one percent, country clubs, and dollar signs. With that in mind, the companies know that the people interested in a golf cart can afford to pay a significant amount for it.
5. Operating in a Monopoly Market
A few groups of powerful manufacturers entirely dominate the golf cart industry. The leading producer of golf carts controls almost eighty percent of the market.
This firm can charge a greater price for its golf carts because its customers are willing to pay more for a product that is of better quality and will endure for a longer period. Due to the same reason, golf cart repairs might end up being pretty pricey.
There are occasions when your golf cart could need nothing more than the components that the manufacturer already has in stock. The manufacturer of your golf cart may be the only one who has the knowledge necessary to do repairs on your vehicle in certain circumstances.
Therefore the price of the golf cart includes the fact they know you can’t go anywhere else—additionally, the expertise and exclusivity of the producer of the cart.
6. Specialized / Custom-Built Design Options
Even while many golf carts come with standard functionality, many of those functions have room for improvement. You have the option, for instance, of purchasing a golf cart that comes equipped with airbags rather than seat belts.
Customizing will be more expensive than purchasing a golf cart with standard safety features.
It is possible to improve the lighting on the golf cart so that it is easier and safer to drive at night. You also can purchase golf carts equipped with GPS devices, which will make it easier for you to keep track of the distances that separate each hole.
7. Premium Quality Materials Used
Golf cart manufacturers may maintain their golf carts’ pricing by using premium components and making other specialized modifications. And this is why only certain manufacturers are also leading the market.
Other golf cart manufacturers often do not compete with them for quality, which is the primary reason they cannot charge the same high rates for their products.
Your round of golf at almost any golf course will almost certainly include using a golf cart as part of the overall fee.
If you want them to last through several uses, they must be made of high-quality materials throughout the manufacturing process.
Quite frequently, one manufacturer will be responsible for creating the component elements of the cart, while another company will be responsible for putting everything together. And we cannot forget the profit margin.
8. Higher Logistic Costs
There is a good chance you will be required to pay a fee to have it sent to your location. However, if you manage to get your hands on a cart from a dealership located near you, then you can reduce the logistic costs.
Quite often, they may jack up the price of shipping just a little bit to create a few more dollars. Depending on the cart, the price might be anything from $300 to $600 or even more.
However, there will be older carts sitting on the lot for a long time. And this means that their shipping prices are often lower. And this is due to the dealer trying to get them off the lot at any cost, even if that means incurring a loss.
9. Additional Safety Instructions & Features
If you want to make your cart safer—for instance, if you’re going to turn it into a low-speed vehicle or just want to use it with children—you may need to install additional safety devices. You have the option of purchasing these components and installing them yourself. Or you may have the work done at a facility that specializes in servicing carts.
There will be a reduction in costs as a consequence of do-it-yourself installation. Nonetheless, the components themselves will constitute the majority of the total cost.
The price and value of your cart will increase significantly if you install additional safety features, such as:
- Stronger brakes ($700 or more)
- Better steering ($800 or more)
- Seat belts ($300 or more)
- Turn signals ($70 or more per light)
- Headlights ($250 or so)
- Taillights ($250 or so)
- Turn signals ($80 or more per light), respectively.
While there are numerous ways through which individuals can cut the price of their golf carts, it is still an expensive purchase.
There is a significant demand for these carts in the market, and from what we understand from basic economics, prices go up where there is demand.
Moreover, a handful of significant manufacturers dominate the golf cart industry. Furthermore, the clientele is typically quite wealthy. And this inevitably means that they set the cost of the good, not the consumers, as fewer substitutes are available in the market. Additionally, guess what?! The more specifications and customizations you make to a cart, the more the price goes up!
Compromising the price of a golf cart can inevitably affect its quality and the level of output this vehicle gives. Therefore, when you are out on the golf course, sipping on fresh juice, or cruising on your golf cart, remember that safety comes first, which is why they are expensive.