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How to Payoff SmartGreen Gaming Systems in 24 or 36 Months and Less?

On April 28, 2020
SmartGreen Return on investment 01

Expect Accelerated ROI Payoff with SmartGreen Putting Entertainment and Gaming Systems.

NextLinks’ SmartGreen system is a recent but dynamic entry into the experiential golf entertainment space intentionally designed and optimized to achieve maximum Return on Investment for it owners. NextLinks’ two systems– the SmartGreen PRO 2X and SmartGreen CANOPY — each aim to satisfy an ROI well inside a three year operating window enabled by the engaging power of the SmartGreen’s gaming software which uses colored lasers to project an entertaining array of NextLinks putting games like “NextLinks’ Challenge,” “Golf Darts,” “Golf Shuffleboard,” “Golf Around the World” and “Golf Beer Pong.” More importantly, the SmartGreen’s software controls player traffic to optimize the guest experience as well as profits. Food and beverage ordering is a standard function of every SmartGreen system.

By comparison, golf simulators typically yield 100% ROI after about six years. The size and open nature of a SmartGreen provides a spacious fun, and competitive entertainment zone that is ideal for groups of 20 and provides a unique destination for special events. 

Consider these scenarios for each SmartGreen entertainment system:

Payoff a SmartGreen PRO 2X within 24 Months!

SmartGreen Pro2x with Swing Simulator integration
SmartGreen PRO 2X 02

Geared for smaller venues, such as sports bars and clubhouses, the SmartGreen PRO 2X consists of two SmartGreens (36’ x 16’ each) that can be connected end-to-end to make one 72’ x 16’ green that can be rented out to fun-seeking groups as one large party space. NextLinks’ proprietary software projects colored laser images onto the green to act as tee boxes, targets, game boards and scoring zones while also acting as a traffic control system that enables an optimal number of players to use the green at the same time. Groups pay by the hour or half hour to play, positioning the host venue to monetize a purpose-built space or even an area that once sat empty or unused. Venues that own SmartGreens can earn golf-related revenue even during “non-golfing” hours—at night and during inclement weather.

Some clubhouses and resorts will want to offer the PRO 2X as a permanent walk-up amenity, allowing their members and guests to play for free. Even when the PRO 2X’s core use is as a value-added amenity, it can still be rented out to special-event groups, earning bonus revenue for the property.

Consider these realistic scenarios:

  1. Small Group Special Event (6-10 people reserve one side of the double-green for two hours). The average revenue per event is $500 ($80 from game play and a $420 minimum food and beverage spend). If you host five of these events/week (260/year), your annual revenue will be $130,000.
  2. Large Group Special Event (12-20 people reserve the double-green for two hours). The average revenue per event is $710 ($160 from game play and a $550 minimum food and beverage spend). If you host two of these events/week (104/year), your annual revenue will be $73,480.
  3. Non-Amenity Walk-Up Traffic (1-8 people reserve one side of the double-green for one hour). The average revenue per event is $160 ($40 from game play per hour and a $120 estimated food and beverage spend). If you host 10 walk-ups/week (520/year), your annual revenue will be $83,200.

These forecasts include one dedicated attendant wage at $15 per hour folded into the operating expenses, even though the PRO 2X does not necessarily require a dedicated worker. In a golf clubhouse or at resorts, the check-in desk can handle PRO 2X check-ins. At these locations, waiters who serve food can easily include the PRO 2X in their table list (the 2X includes the ability to call a waiter and order food via the management app). If waiters aren’t used, PRO 2X players can walk up to wherever the food is managed and order/pick-up the food themselves. The annual F&B cost is factored in at 30 percent of the total F&B revenue.

Total Investment = $149,995 (pre-tax)

As an Amenity:
Forecasted Annual Revenue as an amenity –  $203,840
Forecasted Annual Profit as an amenity – $137,000
Forecasted payback period as an amenity – approximately 1.5 years
Total Cash flow after year 5 – $521,130

As a Non-Amenity:
Forecasted Annual Revenue –  $287,040
Forecasted Annual Profit – $193,680
Forecasted payback period – approximately 1 year
Total Cash flow after year 5 – $804,530

Payoff SmartGreen CANOPY within 36 Months!

SamrtGreen Canopy by Nextlinks 12 01
SmartGreen Canopy by Nextlinks 7 01

The SmartGreen Canopy is a 10,000 sq. ft. structure that covers 12 SmartGreens , also equating to six SmartGreen PRO 2X systems — plus a bar area, space for a dedicated food truck, seating area for each green, and additional lounge seating around the bar. The structure itself is a beautiful canopy that can open on the sides for open air or closed on the sides during inclement weather. The Canopy can also be heated and cooled for year-round use. The purchase price is $2,950,000* all in, and includes the cost of Luxury Canopy, 12 SmartGreens, contract labor for the assembly, atmospheric lighting, audio system, 24 televisions, 2 giant video screens, lounge areas including tables and couches, 12 iPads for the gameplay, etc.

Forecasted Annual Revenue – $2,200,000
Forecasted Annual Expenses – $1,250,000 included: General staff of five people/night, two administrative employees, F&B cogs, marketing/advertising, miscellaneous, and other expenses.
Forecasted Annual Profit – $950,000
Forecasted payback period – Inside 3 years

Revenue Breakdown (based on 74 operating hours/week and 50 weeks of operation):

Venue revenue is projected as a split between walk-up and special event revenue. The SmartGreen Canopy will become a hotspot for special events/corporate events. Groups from 1-8 can call ahead to book one SmartGreen, groups from 12-16 can book two SmartGreens (a PRO 2X), all the way up to group sizes of minimum 75 patrons booking the entire venue. Minimum spend on game play and F&B grows with the size of the group. 

Forecasted Annual Game Play Revenue: $450,000
Forecasted Annual F&B Revenue: $1,770,000

*Lower price options are available through shared revenue partnerships.

Conclusion

From the above scenarios, which are typical of current up-and-running locations, the ROI is easily attainable with SmartGreen PRO 2X and SmartGreen Canopy. Business owners who want to use golf entertainment to grow their clientele and bottom line should love the concept of bringing golfers and non-golfers into the same entertainment space with a technology solution that fit the budget and yields speedy ROI because it’s designed with its owner’s profitability as a critical requirement.

Additionally, they serve as such a unique entertainment system that guests who use them will tell their friends and colleagues about their experience. In turn, more people will visit your facility to check out the SmartGreen and subsequently engage in everything else your facility offers, further expanding less tangible but equally impactful benefits.

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