Club Marketing Innovator ft. Zack Bates | Coffeez for Closers with Joe Shalaby Ep. 50

Summary

Coffeez for Closers with Joe Shalaby
Episode 50: Club Marketing Innovator ft. Zack Bates
Release Date: November 1, 2024

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Introduction

In Episode 50 of Coffeez for Closers, host Joseph Shalaby engages in an insightful conversation with Zack Bates, a pioneering figure in hospitality and marketing. With over two decades of experience, Zack has been instrumental in elevating private club communities, advising prestigious establishments like the Monterey Peninsula Country Club and Glen Eagles Private Club. He is also the founder of a luxury real estate platform connecting golf enthusiasts to premier golf properties globally. This episode delves into Zack's niche business, the evolution of private clubs, the emergence of social clubs, and innovative concepts shaping the industry today.

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Background of the Guest

Zack Bates shares his journey into the hospitality industry, highlighting a serendipitous summer job that ignited his passion for private clubs.

[01:54] B: "I was looking for a summer job in college as a lifeguard up in Los Angeles... met a gentleman in the parking lot... he was the regional vice president of the largest club management company in the world... I took this job for the summer and just loved it."

Zack's early experiences at a country club revealed the multifaceted nature of the business, encompassing golf, membership, accounting, food and beverage, tennis, and wellness services. This comprehensive exposure laid the foundation for his future endeavors in private club marketing.

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Private Club Marketing

Zack discusses the uniqueness of his business in promoting and scaling private clubs discreetly, respecting the exclusivity that members value.

[01:23] B: "Members generally don't want to know that there's someone pushing membership at their club. They want it to be, you know, referrals and introductions from within their own circles."

His company operates behind the scenes, focusing on member engagement and retention rather than overt promotional strategies. This approach ensures that private clubs maintain their exclusive ambiance while still growing their membership organically.

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Evolution of Private and Social Clubs

The conversation shifts to the transformation of private clubs, particularly the rise of social clubs targeting younger demographics.

[03:33] B: "They're blowing up. Especially the new social club scene... targeting a younger demographic."

Zack highlights the shift from traditional, buttoned-up clubs to more relaxed environments that cater to modern preferences. This includes integrating amenities like comedy clubs, nightclubs, and wellness experiences to attract a diverse and younger membership base.

[06:31] B: "Covid probably was the catalyst behind this big boom of the new social club... people are looking for places to hang out and work with like-minded individuals."

The pandemic accelerated the need for flexible, community-oriented spaces, leading to the proliferation of social clubs that offer co-working spaces and a blend of leisure and professional environments.

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Virtual Club Concept

One of the most intriguing topics of the episode is Zack's introduction of the "virtual club," a novel approach to accessing private club experiences without traditional membership constraints.

[12:02] B: "We've been working for a year on a club without walls... setting up a golf network for them."

This virtual club platform functions similarly to booking services like Hotels.com but for private clubs, allowing members to make reservations and access exclusive amenities without the hefty membership fees. Initially launching with a $2,500 annual fee, it provides golfers with the flexibility to play at various elite courses worldwide, bridging the gap for those who cannot afford or do not wish to commit to expensive memberships.

[15:18] B: "We're introducing a much more attainable tier. It's $2,500 a year... it bridges the gap."

Notable partnerships include Pebble Beach Resorts, Rosewood, Auberge, and Pelican Hill, offering members added amenities and unique experiences that enhance their golfing and hospitality engagements.

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Personal Life and Family

Zack opens up about balancing his demanding career with family life, emphasizing the importance of instilling work ethic and entrepreneurial spirit in his children.

[27:18] B: "My kids will come and do homework with me while I'm working... they see me working and learn from it."

He describes his home office as a "man cave" complete with a fireplace, bar, and putting green, creating an environment where his family can be present while he conducts business. This setup not only fosters a work-life balance but also allows his children to witness his professional endeavors firsthand.

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Business Strategies and Goals

Zack outlines his strategies for preserving the tradition of private clubs while introducing modernization to attract new members.

[19:39] B: "One of our founding goals is to preserve tradition at these clubs... elevate the experience."

By integrating modern amenities like mobile bars and cigar lounges, Zack ensures that traditional values coexist with contemporary preferences. His approach focuses on member retention by continually enhancing the club experience, encouraging frequent use, and allowing membership fees to scale with increased utilization.

When discussing business goals, Zack emphasizes sustainability and growth:

[34:38] B: "For the business, we just like it to provide the lifestyle that we want... travel and do things with our family."

He aims to expand his global network, leveraging relationships with luxury brands to offer exclusive experiences and maintain a high standard of service.

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Future Outlook

Zack shares his vision for the future of private clubs, highlighting trends such as preventative wellness and the integration of biohacking centers.

[07:23] A: "There's so much that's going into this preventative wellness. This whole biohacking is the rage."

He anticipates further diversification of club amenities to include wellness-focused activities, catering to a health-conscious demographic. Additionally, Zack foresees the continued expansion of private and social clubs beyond major cities through partnerships with luxury hotel brands and destination resorts.

[08:19] B: "There's a company called The Well in New York... partnered with Auberge Resorts on destination wellness retreats."

This expansion strategy ensures that exclusive club experiences become more accessible while maintaining their high-end appeal.

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Balancing Exclusivity and Inclusiveness in Marketing

Zack elaborates on his company's marketing strategy, which focuses on education rather than direct sales to preserve the exclusivity of private clubs.

[23:40] B: "We never say memberships are for sale, so it's always an education."

By creating content that highlights the history and unique features of each club, Zack attracts potential members without compromising the club's esteemed reputation. This method involves qualifying leads based on income, age, and proximity, and then leveraging existing member networks to facilitate genuine introductions and invitations.

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Personal Reflections and Philosophy

Towards the end of the episode, Zack reflects on his personal and professional philosophy, emphasizing the importance of integrity and positive impact.

[38:48] B: "Do as many of the right things as you could along the way... leave an imprint on as many people as you can."

He underscores the significance of building meaningful relationships and supporting others without expecting anything in return, reinforcing his commitment to both personal growth and community enhancement.

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Conclusion

Episode 50 of Coffeez for Closers offers a comprehensive look into the innovative approaches Zack Bates employs to revolutionize private club marketing. From the establishment of the virtual club to the integration of wellness amenities, Zack's strategies reflect a deep understanding of evolving member needs and industry trends. His dedication to preserving tradition while embracing modernization serves as a blueprint for successful entrepreneurship in the niche world of private clubs. The conversation also highlights the importance of balancing professional success with family life, showcasing Zack's holistic approach to business and personal fulfillment.

Notable Quotes:

• Zack Bates [01:54]: "I was looking for a summer job in college as a lifeguard up in Los Angeles... I can do this."
• Zack Bates [03:33]: "They're blowing up. Especially the new social club scene... targeting a younger demographic."
• Zack Bates [12:02]: "We've been working for a year on a club without walls... setting up a golf network for them."
• Zack Bates [15:18]: "We're introducing a much more attainable tier. It's $2,500 a year... it bridges the gap."
• Zack Bates [23:40]: "We never say memberships are for sale, so it's always an education."
• Zack Bates [38:48]: "Do as many of the right things as you could along the way... leave an imprint on as many people as you can."

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Key Takeaways:

1. Niche Expertise: Zack Bates has carved a unique space in private club marketing, focusing on membership growth and retention without compromising exclusivity.
2. Virtual Club Innovation: Introducing a scalable, affordable membership model that offers access to multiple elite clubs worldwide.
3. Evolution of Clubs: The shift towards social and wellness-focused amenities attracts a younger, more diverse demographic.
4. Balanced Lifestyle: Emphasizing the importance of integrating family life with professional pursuits to foster a healthy work-life balance.
5. Strategic Marketing: Utilizing education-based marketing strategies to maintain the prestige of private clubs while expanding their membership base.

This episode provides valuable insights for professionals in the hospitality industry, aspiring entrepreneurs, and anyone interested in the dynamics of running successful, exclusive businesses.

Transcript

[A]

What's up, everybody? And welcome to another episode of Coffees Forecloses, where we dive deep into the stories of industry leaders who have redefined success. Today's guest is a true innovator in hospitality and marketing, known for creating exclusive experiences for high profile private clubs. With over 20 years in the field, he's advised legendary clubs like the Monterey Peninsula Country Club and Glen Eagles private club, preserving members and boosting member engagement. He's also the founder of a luxury real estate platform that connects golf enthusiasts to premium golf properties around the world. Please welcome Zach Bates.

[B]

Thanks for having me.

[A]

Hey, thanks, Zach. Thanks for coming today. I know it's a long drive, you.

[B]

Know, quite a long drive across the street from. From you guys.

[A]

Yeah.

[B]

It was a nice surprise, though. Yeah.

[A]

Yeah, it's awesome. I can't believe someone of your caliber I haven't met yet, and you're right in my neighborhood.

[B]

So we hide out in the clubs. That's what it is.

[A]

That's what it is.

[B]

Of course.

[A]

Yeah, exactly. It's a rough life.

[B]

Yeah. Someone has to do it. Somebody has to do it.

[A]

What a niche. We were talking that you got such a niche business. Such a niche business. I think you're like the only person I've ever met that basically helps elevate the private club community. It's kind of a new business to begin with, anyway.

[B]

Well, private club's been around for hundreds.

[A]

Of years, but not like a promotional back end.

[B]

Correct.

[A]

To scale a private club.

[B]

Yeah. Members generally don't want to know that there's someone pushing membership at their club. They want it to be, you know, referrals and introductions from within their own circles. So to start this company, we were. We've. We're still are behind the scenes after 16 years of being in business.

[A]

Yeah, Well, I mean, it's really like you're. You're bringing in such an exclusive community to these clubs. So what, what drew you, number one into hospitality and number two, into this? Like, how'd you even come up with the private club promotion idea?

[B]

I was looking for a summer job in college as a lifeguard up in Los Angeles, and I just did not want to go back home up to Northern California and applied for a summer job at a country club to be a lifeguard and met a gentleman in the parking lot after, like, giving him my resume. And he's like, I'll tell you about yourself. What do you do? What do you want to do? And I was. I think I was 18 years old, 19 years old. And he's like, well, I'm the regional vice president of, at that time, the largest club management company in the world. 250 clubs all over the globe. He ran the entire west coast and he said, you're not going to work here, you're going to work across town over in Tarzana in Los Angeles. So I took this job for the summer and just loved it. I crushed it. Loved it. I mean, hang out by the pool, put together kids programs, meet amazing people, help them start the wine club. And I was like, wait, I can do this. I can do this. It's really multiple businesses under one roof. It's not just golf, it's, it's membership, it's, it's accounting, it's food and beverage, it's, you know, tennis and wellness. And so to have a business that targets all of these things I already have an interest in was a great kind of win.

[A]

Win.

[B]

Yeah, exactly.

[A]

Yeah. But it's, it's so niche that the private club community is so niche. You know, one thing is to be a, a club community, but you're, you're helping like Newport Beach Country Club and these country club communities elevate their businesses, which are pretty high risk businesses to start to begin with. They come with a lot of vision, but they also come with a massive cost to start. And you're the count. You're becoming like the whisperer to these private club communities which are starting to be more abundant now. I'm starting to see a lot of them pop up.

[B]

They're blowing up. Especially the new social club scene. I mean, like the, so House really kind of started this new category of, of social clubs before it was city clubs, golf clubs, yacht clubs. Really?

[A]

Yeah.

[B]

This new category that's just targeting a younger demographic.

[A]

The social club scene is blowing up.

[B]

Yeah. Even here in Newport Beach. I mean there's, there's two.

[A]

We now have the, we have two now in Newport.

[B]

Yeah, well, I was just asking.

[A]

Besides the cigar ones.

[B]

The cigar ones, yes. But you also have the, the Elwood Club at the Pendry Hotel. You have the. Where the Center Club used to be next to Seagersham Center. Yeah, the Park Lane or Park Club just opened up in that center and they just keep, keep adding on, but very cool interiors, younger membership demographic, great cocktails and food is really what their targets after.

[A]

Yeah, there's people probably listening right now who don't even know what a private club is. So they're like, what are they talking about? What's a private club? You want to explain to them what a private club is just so. So people are aware and they understand this whole new genre.

[B]

Absolutely. So we started as a private club. Marketing is the company. And we started as an advisory and marketing firm for private clubs, which are basically golf courses that you pay a fee to join up front. And then the only people that get to play are people who pay an annual or a monthly fee to gain access. They don't pay for golf. They just pay a monthly bill, call it $1,000 a month to play basically unlimited golf. You book your tee time and you come out whenever you would like. It's kind of like the show Cheers. Everyone knows your name when you walk in. So there's some perks to that. Right. So if you come off the golf course and they know that you like a Macallan, it can be ready for you, or they know you like a Modelo is what you want when you get off the golf course, it's nice to have those perks. They know what brands you like to wear, so they'll kind of cater things to you, like, hey, this new look just came in. Or these new brands just came in, I think you might like. So it's a bit different than your public golf course. And then you get into yacht clubs, which are the same thing, but just for people who like to boat. And you've got tennis clubs, the same thing. And the social clubs are basically your favorite steakhouse or restaurant where you have to be a member to walk in the door. You can bring guests, but guests can't come without you. So there's some perks come along with that as well. It's like trying to make a dinner reservation at, call it Solani's Steakhouse down in Laguna. And like, oh, we're all booked up. Well, they don't know who you are. They don't know what your preferences are. And so you really have the opportunity with the private club to kind of have that elevated experience.

[A]

Yeah. And. And they're. They're becoming more and more elevated. When I was touring Dan Fleischman's Gravitas private club, I mean, he's adding comedy club in there, he's adding nightclub experience in there. He's adding, you know, health experiences. And I mean, every type of experience is within that. That one club, you know, like, they know all. Everything you like to drink, like you said, the wines. And they have their own little private is. This club even has private rooms for his private guests. So they can have, like their own sub party.

[B]

Yeah, I mean, private meeting rooms are huge rooms. Yeah, I think Covid probably was the caveat behind this big boom of the new social club, like the Soho House boom. So has been around for 20 plus years. But I think all these newer clubs that are popping up, working from home or remote work has really driven people to look for places where they can.

[A]

Hang out all the time, hang out.

[B]

Work with like minded people. Because it's a lot of co working in these spaces as well. Whereas before COVID or maybe, I mean, I'm going to age myself, you know, 10 years ago, laptops were not allowed, your phone wasn't allowed in these clubs. Denim wasn't allowed in the clubs. 15 years ago @ a lot of these clubs.

[A]

Oh, wow.

[B]

So it's come a long way and.

[A]

I like, I love to see the progression of these clubs. Just like we were on the phone earlier, like these biohacking clubs that are going to start opening, they're going to be totally changing the experience because now they're going to be sober clubs for the people who don't want to go and drink and have a wine or.

[B]

Alcohol consumption is way down on, especially a younger demographic. But preventative wellness is such a huge marker right now.

[A]

I mean, look at the biggest market I'm seeing ever.

[B]

Yep. Yeah.

[A]

There's so much that's going into this preventative wellness. This whole biohacking is the rage.

[B]

And why not? We can live longer and feel better at the end.

[A]

Yeah. So it's like I'm gonna live longer, I'm gonna look better, I'm gonna feel better.

[B]

Absolutely.

[A]

I don't have to get wasted.

[B]

Yeah. I need to do whatever you're doing. Because we were talking about this when I walked in. How old did you. You just had your birthday, right?

[A]

Yeah, I just had my birthday. It's like I love to see that because there's these experiences now that are being, that are coming out that are really focused on wellness and health like these biohacking centers and unfortunately those in Newport and Malibu and Santa Monica, those only people that are going to get these experiences, right?

[B]

Yeah, yeah.

[A]

You know, it's. They should pop up in other cities, you know, probably soon.

[B]

I think you look at, I mean there's. In New York there's a company called the well or a private club called the well. And they've partnered up with Auberg Resorts on a couple of like destination wellness retreats. So like down in Costa Rica. So it's not that. It's not that you have to live in a high concentration city to gain access to these benefits. There are resorts that are picking this up as well. I mean, even Amman is doing things at their properties. There's a huge wellness focus in hotel groups like that as well.

[A]

Oh, so people don't have to come to Newport or Manhattan or LA to experience this.

[B]

Yep.

[A]

That's good that they're building. They're incorporating it into these, you know, these luxury hotel brands.

[B]

I think it's nice if you're gonna go to, you know, Tuscany and they've got something like that where you're like, I'm gonna go drink wine and eat great food. Being like, oh, there's a whole wellness component to this experience as well.

[A]

I'm gonna do sound bass, Enrique and cold plunge.

[B]

Exactly, exactly. I just want to eat and drink when I'm in Italy. Yeah, they've got the, those things.

[A]

Throw that in and it's all okay. That all balances, you know.

[B]

Absolutely, absolutely.

[A]

Yeah. You've. You've totally atoned for, for that sin with it. With the.

[B]

Exactly. With the cold flight hangover.

[A]

Yeah, absolutely. Um, I, we, you know, I didn't even start with my opening question, but I like to start every show with an opening question. And even though we're quarterway through the show, it's a. What's your morning routine? You know, you have obviously great health and living a good life here in Newport and everybody here in Newport beach has some sort of routine.

[B]

I really don't. I live like a normal person. I have a morning of mayhem with children at home. So yeah, all your kids there. I've seven and nine year old daughters and I have a four year old stepson. And so my fiance and I wake up every morning to just mayhem in the house. But it's getting three kids out the door to get them to school or camp, whatever they're doing for the day. But it's two cups of coffee and corralling herding cats around our house to get them off to school on time. But I love coming to the office. That is part of my routine. I, I have to get to the office every morning. And during COVID I built out our studio or our offices as basically a private club. So we've got the fireplace and the full bar and the. In the coffee bar and the living room and the putting green. And so it really is like, it's like a man cave really. But it's.

[A]

That's your studio?

[B]

Yeah. You have to come over. It's across the street. It's awesome.

[A]

That's the studio at the office?

[B]

Yep, yep.

[A]

That's how you guys Built your office here.

[B]

Yep, exactly.

[A]

Okay.

[B]

It was an empty warehouse and I was like, this needs.

[A]

Converted it.

[B]

We converted it. Yeah. It was a gym before I moved in. I had.

[A]

How many square feet is that?

[B]

It's 1500 square feet.

[A]

It's not huge, but it's pretty decent size.

[B]

Yeah, yeah.

[A]

Or just a big cave.

[B]

It's a big man cave, basically. Yeah.

[A]

And you've converted that. You made that your company office. That's cool.

[B]

Yeah. So brands come in and they're. And what a great way to activate or do a meeting. It's. It's less formal and so you sit in a chesterfield couch and we'll get you a whiskey or a glass of wine and just hang out. I mean the club to myself.

[A]

Yeah, exactly. And it kind of sets a precedence for the club owners that this is, you know, kind of like that what I do.

[B]

We're a serious business. Yeah. This isn't a part time deal. This is. We only focus on private clubs for the most part.

[A]

What's the biggest private club you worked with? Are you allowed to disclose?

[B]

The biggest one is coming up. We just signed a deal for a brand new. It's a half a billion dollar development on the east coast. It's ground up construction, it's residence, it's spa, it's private club, it's apartments and hotel. I mean it's a major endeavor. So we're excited to get that started, but we can't release anything on that yet.

[A]

Oh, wow. And we were talking about that there's another thing that's starting called the virtual club.

[B]

Yeah. We've been working for a year on a club without walls and there's.

[A]

How can that even be a thing or an experience?

[B]

So 20 years of me being in the, in the club business, you know, we refer members to these clubs all over the country, all over the globe. And so we were approached by a group that has a large, I mean hundreds of thousands of social club members from. These are members of Soho House, the Zero Bonds Casa Cipriani to the Brightly here in Los Angeles. And these members don't have access to golf. They reciprocate with each other in some instances. So a social club will reciprocate with another social club with a request or permission. But none of those clubs have access to golf. And so we're approached to basically set up a golf network for them. And so our database or our network is about 100,000 members of Golf clubs. And so we're basically sharing access to these social clubs and, and country Clubs where you would normally have to pay 25 or 50 or $100,000 to join these clubs. We'll give you kind of a preview into what it is to come play golf and have access to that as a guest of our network.

[A]

So. And that's an additional, like, upcharge for your network. So you. So, but what if, like, let's say I become part of that network and I want to go to the Newport beach country club, like, 10 times in a row? That's not possible. You'd have to be.

[B]

Each club will have their own limitations. Their own limitations, and it's based on availability. So if Newport Beach Country Club, which is not part of the network, but let's say a club like that said, you know, we're slow on Tuesdays between 11 and 12, someone come in and make a lunch reservation with us. We'd love that business.

[A]

So you're kind of like a hotels.com for country clubs.

[B]

Yeah, it's. It. Yeah. Or a hotels tonight. Like, hey, I need. I want something today to, you know, host a client for.

[A]

That's actually a good concept. Like, but the problem is there's. There's just not an abundance of those. It's not like I could, like, look up private club. Oh, this club's available this evening.

[B]

You can actually. You put you. The request goes directly to the club for them to say, we'd love to host you for lunch. Or unfortunately, we can't accommodate you. So they can. It's. There's a full app on the. On the back end of our platform where they communicate directly with each club.

[A]

So that. That sounds like an exciting venture that you're starting.

[B]

Yeah. We have 50 of the best golf resorts in the world that are already a part of this. Our first call was to Pebble Beach Resorts, and they got the concept immediately and jumped on board with us. And so you don't get free golf at pebble beach, but you get added amenities and benefits that you don't get with any other partner. So.

[A]

So I can get. How do I can get part of this membership? And I can go to pebble beach and play golf, or I stay on.

[B]

Property to play golf there, which is just a standard rule of theirs. But your experience is elevated ahead of anyone else. So be a preferred tee time, be it extra amenities in your room, being an upgrade to a better room, a better view, an introduction to the director of golf, a quick instruction before you head out. There's some really cool things. We set up some of these properties so Rosewood's on board. Auberge, Amman, Pebbles involved. Pelican Hill here in Newport beach is involved. So we've got some really exciting partners.

[A]

That's great. And there's a lot of opportunity with that. So that's exciting to hear.

[B]

Yep.

[A]

So it's a virtual club. You'll be, you'll have access to the entire club network.

[B]

There's two tiers, and the tier we're going to start with is a much more attainable tier. It's $2,500 a year. There's no monthly dues and basically just gets you access to be able to book these tee times, reservations with these clubs. So there's a huge market of golfers that can't afford or don't see the value in paying $25,000 or $50,000 to join one club to play golf at the same, you know, the same golf course every day or twice a week. I want to go play golf wherever I'm traveling, wherever I'm going to go. If I can't play a private club, it's not worth it to go play for six hours on the golf course. So this kind of bridges the gap, opens the door. People that are like, I don't see the justification of spending 100 grand to play the same golf course every day.

[A]

Yeah, yeah, that, that does bridge the gap.

[B]

Yeah.

[A]

And it opens it up. So you have so many different experiences. I love it. Now, we've talked a lot about the hospitality industry and its changes in the private club community and what's kind of on the hop, you know, on the horizon. What else do you think is on the horizon? We got these biohack centers. We got this private club idea that you're basically introducing to the whole.

[B]

We're trying. I think it's gonna be successful. What else? I think that you've got two different demographics. We're targeting or I guess having to meet the needs of.

[A]

There's no middle class people that could be involved in anything.

[B]

No, I'm saying you've got a newer demographic of people who haven't been exposed to clubs before who are like, oh, that's that. I would say before COVID everyone was saying, the millennials are killing golf. Millennials are the ones that came and saved golf. Golf is now one of the most popular sports in the world with the most participants of almost any sport that exists. So now, how do you pivot from being this very traditional, buttoned up industry where, you know, it's suit and tie for dinner, to loosening it up where you're like no, you don't need to wear a jacket anymore. Which has been an evolution of unfolding but it's really forced the hand of a lot of clubs saying we've got to loosen the guidelines in terms of what our expectations are of our members. Not to say to lower the expectation of who we invite into the club but that we've got to kind of loosen up a little bit. We've got to do, you know, different types of wellness things. It's not going to be water aerobics anymore, it's going to be Pilates and reformers and things like that to cater to a younger demographic.

[A]

So you see a lot more opening up to younger demographic.

[B]

Absolutely.

[A]

And which makes it more affordable for the rest of us.

[B]

Absolutely. Yeah.

[A]

Right.

[B]

And interesting, right. If you go to a club or you go to a restaurant and there's no one there, you're not going to go back or you're going to have a, you know, finish that drink and you're going to move on. Or if you go there and no one in the room is of your age demographic, you went out for Thursday night cocktails and everyone's older and sitting down as a four top, you're not going to meet anyone. So I think these newer clubs, especially social clubs are identifying. We've got to do fun things for younger members to want to come and use the club not just once a month but once a week or twice a week.

[A]

That's awesome. And then how is the private club industry accommodating, like more a more budget friendly youth, you know, like basically can't afford these crazy memberships. How are you bridging the gap for your 20 somethings?

[B]

A lot of, a lot of the clubs that are especially the higher end have either legacy memberships for the kids of existing members to join at a lower price and it tiers up as they get closer to say 50 or 40 and some just have a junior membership program that are, you know, if you're between 20 and 25 or 20 and 30, there's tiered pricing and so you kind of pay up as you move along. So if you're.

[A]

That's awesome.

[B]

23 or just out of college, what a great way to get into the club.

[A]

Yeah, they have tiered pricing so they're accommodating, you know.

[B]

Absolutely.

[A]

Gen Z, the Gen Xers.

[B]

Yep. And then you and I hit in our 40s and you're like, oh, now I'm in the.

[A]

We get no discounts now.

[B]

Discounts.

[A]

Yeah, I just still Use my chat for discounts. Those. Nice. Now, how are you preserve. How would you say you're preserving like, or balancing. Preserving like the, the iconic legacy style club and then still introducing the modernization, you know, because there's. That's a huge balancing act.

[B]

Absolutely. And, and that's actually one of our, our, like, founding goals is to. Is to preserve tradition at these clubs. And so if they have an annual men's member guest, for example, a men's golf where you bring guests in, it's. How do you elevate that experience so that it's. It's still the tradition. The trophy's been around for 50 years at that club. You want your name on that plaque. But when you do the stag night or each of the dinners that follow those, or the breakfast in the morning or during the day, you have kind of newer amenities. Let's bring the bar cart out where it's not just the cart girl driving around during the day, but let's actually have a physical bar out on, you know, the fifth hole. And you see something different on the seventh hole where there's, you know, Chesterfield couches with a cigar lounge. You're going to sit down for a few minutes, light your cigar, catch up with. With your buddies and then tee off and go on to the next hole. And, and I think that's what gets people to keep coming back and you can keep driving the price up as members continue to utilize the club more often.

[A]

Nice. Now, how often are these private clubs, like, increasing prices? Like, we're seeing, like, I'm seeing huge jumps in price. Huge with, with demand.

[B]

Yeah, it's starting to slow down. And I mean, Covid crushed our business. We consulted on growing memberships, but everyone got into golf. So clubs were like, we don't need any help growing membership. So we started really going back to our roots, which was on retention, because it's going to hit. You're going to get the spike and then it's going to fall down and you're going to get less people joining because the price went too high, too fast and you're going to run out of people in the market. So I think that clubs just need to focus on their price points and come back to reality and lose my train of thought where we're going with that question.

[A]

No, no, it's. No, it's all good right now. We're seeing huge shifts in this whole space. So it's just such a fascinating space for me to even talk about and get introduced to and expose the community to, because Again, we're people didn't even know that this sort of thing, number one existed, number two was accessible to, you know, laymen and that there's scalable fees even for younger folks to join.

[B]

And I'll tell you, when I was, I got into this When I was 18 or 19 years old, when I was 23 or 25, I started the company and I didn't know that this, there was a level this high. I thought clubs were like, you know, 10, $25,000 to join. And I got recruited to work on a club, those 300 grand. And I was just like, who pays these fees?

[A]

People will pay.

[B]

I mean being here in Orange county, people will pay for that sort of experience. And they were some of the nicest people I've ever met that I still, you know, 10, 15 years later and still am in contact with. You know, I worked for them and I'll run to them at a restaurant and like, how's, how's everything been 10 years. So I just, my business was growing on those people referring me to their second, third, fourth clubs. So that's another thing. These members pay 300 grand to join one club, but it's one of two, three, four that they're members of that pay the same price. So they have homes in Aspen or in Napa or in pebble beach here, Chicago, Dallas, you know, they have three, four or five homes.

[A]

Wow. Now let me ask you because we talked about this briefly in the beginning, but like how, how do you really balance that exclusivity of a club and you still have with the inclusiveness in like the club marketing, you know, because to market kind of takes away that exclusivity. So we, how do you really balance that?

[B]

We, we never say memberships are for sale, so it's always an education. So how do we educate you about the history of whatever club it might be? Let's say it's a historic club in Los Angeles, sharing content in local magazines or getting a news clip or social media clip because then you're going to market to a younger demographic.

[A]

So you never sell.

[B]

It's only about educate and then inquire to learn more. Would you like to learn more? Click here. So I say our database is quite large. Hundreds of thousands of high net worth individuals that have an interest in golf, tennis, wine, cigars, whiskeys, wellness. If they click through, we then have a lead list. So you have an interest list. We call them suspects instead of prospects. Right. Until they've actually done an inquiry to the club, they're a Suspect. So now they're in a kind of a subgroup of ours. So if we know they're in Los Angeles, they make half million dollars a year or quarter million dollars a year. We qualify them based on income and their age and proximity to the club. Well, that's someone that maybe we need to do step two, which is invite them to the club. Not from the club, but from an existing member. So someone who stay on the membership committee or someone who's on the food and wine committee, or even someone like myself that would just like to host. Hey, I'm going to invite 12 guys out to play golf. And we just kind of move them through the process of you get an education, touch point. You get to actually physically touch the club and then an extension of the invitation. So the club will then extend the invite, or I'll extend the invite, or the member who hosted will extend that invite to apply for membership.

[A]

Fascinating strategy. Pretty layered and thought out.

[B]

Yeah. And what other industry do you get invited? I mean, Ferrari does that, right?

[A]

Ferrari. I would love that experience, by the way. Like, please invite me. I would love that exact experience. You just.

[B]

Yeah, what a touch point. Right? You're going to pay even if it's $25,000.

[A]

No, I know. I would be sold. Actually, don't invite me because I don't even play golf.

[B]

Groucho Mark said I'd never be a member of a club that would invite me, though.

[A]

But the experience of the whole invitation process sounds awesome. Now, we talked about this, and I'll just kind of dive into some. Some of your personal life here just because that's the way the show goes. So you got two kids and a step, step kid. You know, you're. You're incredibly resilient. Grew up probably not Newport Beach. Definitely didn't grow up probably with the.

[B]

I was born here in Newport beach, actually, and I grew up near, like, Tahoe and moved back in 2007.

[A]

You were born in Newport Beach?

[B]

I was, yeah. Hogue Hospital.

[A]

Hogue Hospital. And you went to Newport Harbor?

[B]

No, I left when I was five. I grew up near Lake Tahoe.

[A]

Oh, okay. Okay. And why did you come back to Newport?

[B]

I lived in Los Angeles and lived in Hollywood and did all those things after college for a couple years. And then my wife at the time, we found a house when you could get houses for basically free. Remember those days when you had a pulse, they give you a mortgage?

[A]

Yeah.

[B]

And so we bought a house at. I think we were 23 and moved down here. I think we'd Fix and flip something on in south county and the market crashed, I think the day after we signed our docs. I mean, we thought we got a steal on this house and the market just tanked. Yep. But we loved Orange county, so what's, you know, what's the point of leaving someplace.

[A]

Yeah.

[B]

You got dealt a bad hand or you, you picked up the last, you know, straw on that one and, you know, you've got a roof over your head, you fix up the house and try to get it sold. And so we stayed in that house, I think, for five years.

[A]

Nice.

[B]

Yeah.

[A]

That was at what city?

[B]

In, in Santa Margarita. Rancho Santa Margarita.

[A]

Okay, cool.

[B]

Yeah.

[A]

I mean, this, is this the best place to live now? You're here in Newport, you're in Turtle Ridge.

[B]

Yeah, yeah, yeah.

[A]

I mean, that's just the best place there is.

[B]

We, we love it, we love it down here. I mean, and I think Newport beach is such a great city also because especially where we live, you jump on the toll road, you're at the airport in like 12 minutes.

[A]

Yeah.

[B]

I think at the gate in probably 15.

[A]

Yeah.

[B]

So it's fantastic to be in this town.

[A]

You're leaving possibly the country in 20 minutes.

[B]

You could. Yeah, I've done it. Yeah. Yeah. Off to Italy. Let's go.

[A]

Yeah, yeah. Great place to live. Now, how are you? Because you're at, you were telling me today, up at 2:30 in the morning, at the office at 4 in the morning. So you're, you're a grinder, you know, how are you instilling that same level of grit in, into your children that you have now? What are you doing now to just instill that level of hard work, fortitude, overcoming tribulation and adversity?

[B]

We, they come to the office with me sometimes. I mean, I said we built this out as kind of a man cave, but we have a full kitchen and bar at our office. So my kids will come and do homework with me while I'm working. So I have to pick them up early, say at 3 o'clock or they're not at, you know, at caregivers after school. They'll come with me and we'll hang out and they'll see me working, be on the phone and kind of learn. Those dads on the phone, you got to be quiet. Or they're on the phone with me because we're pretty close with our clients.

[A]

Yeah.

[B]

So it's, you know, you've got kids, so it's one of those. Oh, yeah, the girls are here with me and it's yeah, it's so nice to work with clients. They're like, it's a family. We're all working towards the same goal of being better and having an elevated brand.

[A]

Yeah.

[B]

Elevated business. Because we all want to just keep moving forward. So to, you know, we're all human beings at the end of the day. So I think to have that human element of our business and to be a luxury brand or a luxury business that targets that demo, to be like, we're still human at the end of the day. And having boundaries, like, hey, my kids are having dinner. I'll call you in 20 minutes. And it's all texting with our. With our clients. It's a pretty cool experience.

[A]

Yeah. That's one thing I've really found. You know, it humanizes you to have your kids around. I mean, it does one. Like, I called someone yesterday and I called and my kids were screaming, literally, as I called them, like, they. I'm like, sorry. Like, in the middle of screaming, throwing a tantrum as my baby and like, throwing a tantrum. Like, he's like, no worries, man. It's all good.

[B]

We've all been through it. If you have kids, you get it.

[A]

Yeah. It's like, literally screaming at the top of their lungs, like, oh, my God, this is happening right now. Sorry about that.

[B]

Absolutely. Also, my kids get to see some of the projects that I've worked on. So when we did Newport beach country, we'd work with the ownership there. They got to see the construction as it was going up and then got to, you know, drive the golf course with me. They got to swim in the pool. They got to go to the Mother's Day brunches or dinners at the club. So it's nice for them to kind of see, like, this is what I do.

[A]

Yeah. Dad puts this thing together.

[B]

Yeah.

[A]

All these hoity toity folks here, you know, dad knows them all.

[B]

Most of them. Yes, yes. It's very. I think it's just fun for them to see, like, how do you work for a company like this? Which they don't get to meet anyone else. You know, a lot of parents are attorneys or accountants or, you know, a general white collar job. And this is a white collar job that's just so niche and different.

[A]

Attorneys and accountants at Newport Beach. No, they're never.

[B]

No, no, no, no, no.

[A]

They're all like, CEOs. They're all CEOs.

[B]

True. But you also have, you know, partners in law firms. They're all there.

[A]

Yeah, yeah, yeah. Partners in law firms. Are owners of the hospital.

[B]

That's true. They're there as well.

[A]

Yeah.

[B]

They're on the board.

[A]

And not just regular doctors or there.

[B]

Absolutely. But to rub elbows. I mean, I didn't grow up. I didn't grow up with money.

[A]

No.

[B]

I earned up that way. My family, you know, moved up. And you didn't grow up with money.

[A]

That was my segue into. The question was, like, not growing up with money and then having your kids grow up with money.

[B]

Yeah.

[A]

How are you balancing that? Because I grew up dirt poor. My kids are growing up in Newport beach where their friends are like, their dads are super bowl champions, literally. And several of the kids that they are whatever champion or God knows what they are, you know, like everybody's something. Like, so you're just so numb to it in Newport Beach. It's like, oh, you're whatever. You own F1. Oh, that's cool. You know?

[B]

You know, it's surprising. There's a lot of multi generational wealth in this town, but there's also a lot new wealth.

[A]

A lot of new wealth. I've met a lot of multi generational wealth. And those are people I don't we get to meet. They're. They're there. But there's so much new wealth that I don't see. Too much generational wealth.

[B]

Yeah.

[A]

Just because the. The concentration of new wealth. Because everyone knows, like, if you have a lot of money, where you gonna move? You're gonna move to Beverly Hills. You're gonna move to Newport Beach.

[B]

You know, like, if you're in Beverly Hills, you end up in Newport Beach.

[A]

Yeah. Then you're like, why the hell was I in Beverly Hills? Because I didn't know of Newport Beach.

[B]

Right. Yeah. Get behind the orange curtain. It's great down here.

[A]

Yeah. Like, even, like the folks who are coming from Malibu, they're like, yeah, a lot of folks coming from mountain. Malibu is great. But you new, like, Newport beach is like, I think a Malibu on steroids.

[B]

Oh, it's so much bigger.

[A]

Yeah. There's just so much to do.

[B]

Yeah.

[A]

There's so much to do. It's just. It's not maybe as from the cliffside, not maybe as beautiful as Malibu, but it's. It's up there. And Malibu, you're on an island. You are also beautiful.

[B]

Absolutely.

[A]

If you want the Malibu vibe. And this is what I talked to other people in Malibu about. It's like Laguna Beach.

[B]

I mean, south Laguna is amazing. Dana Point.

[A]

Yeah. It's very similar to Malibu.

[B]

Yep. Absolutely. I think also on the kids side of like, how do you instill with them is we still try to live life normal.

[A]

Yeah. Of not in this opulent.

[B]

Yeah. I mean, live in a nice house, but you don't, you don't need to have every, you know, you got to earn it. You want, you want something. Well, you have chores you can help out around the house with and responsibilities that we want you to take advantage of so you can go buy that on your own. And they love that opportunity. Like, hey, I want those pair of shoes. Well, go earn it.

[A]

Yeah.

[B]

Things to do.

[A]

Now's the time you're. You're seven and nine year old and I'm instilling that in all my kids. It's like I make them do content with me. I make them grind as much as I possibly can. I try not to let them think that everything's accessible. I do have to, I do like to spoil them, but I try to make them hustle.

[B]

Yeah.

[A]

It's just like I was hustling like, I can't even remember my first actual income, like business I started was around 14, but then I, I was mowing lawns. I, you know, working as soon as. At the time I was allowed to work at 14 years old. And then I started my first business at like 14. So I was already trying to make money at like 9 or 10. I want my kids kind of embracing the entrepreneurial mindset very young.

[B]

Yeah. Yeah. I think one of my first was we'd hustle around the neighborhood growing up and just wash people's cars. It was like 10 bucks a car.

[A]

Yeah.

[B]

We're like, we want to go to the water park or go to the movies or whatever. It was that.

[A]

Yeah, Exactly.

[B]

I got 40 bucks and go to the movies tonight.

[A]

Go wash people's cars around the neighborhood.

[B]

Yeah. Bang on the doors, ask for 10 bucks. Yep.

[A]

They'll pay you.

[B]

They will. All you ask.

[A]

Yeah. It's funny how that Newport, they all really love it when the kids come and try to make money off. Like, if my kid went, knocked on 10 doors and asked to wash their car, every neighbor would be like, yes.

[B]

You know, my kids did last year. It's. We're in October, so it's timely. They took their Halloween candy and started hawking it on. They put out a little table on the sidewalk is our hawk. And it tells people walking their dogs. One of these communities where everyone walks their dogs and they're just like, hey, I came back with like 20 bucks.

[A]

They're reselling their candy.

[B]

Oh, yeah. They're like, they don't eat it. Like, they like to get it all, and they eat, like, three pieces.

[A]

Everybody's giving out huge candy bars, and no one's eating them. They're just reselling them. Huh.

[B]

Now just. Just slinging candy bars. Gary V. Style. Yeah, one of those.

[A]

Right on. So a couple last questions I have for you. It's what. What goals do you have for your. For your business? What goal do you have for yourself, and what goal do you have for your family?

[B]

For. For the business? We just like it to provide, you know, the lifestyle that we have or that we want. We like to travel. We like to do things with our family. And being in the golf business and leisure hospitality allows us to do things as a family together. But then also with my wife and I or my fiance, we can travel and do things that are unique. When I go to Napa, I've got great relationships. When I go to Italy, I've got great relationships. So to tap into the hospitality space for access is a great way to leverage those relationships for fun because they're friends.

[A]

And you're scaling that. Those relationships are scaling at a global level now.

[B]

Yep. Yeah.

[A]

Where is the nicest place, by the way? Nicest private club you've ever seen?

[B]

The nicest is probably the Santa Lucia Preserve, which is up in Carmel in California. Yep. Yep. It's 20,000 acres of private land. Only 300 home sites on the whole property. And it has a Tom Fazio golf course at the Preserve Golf Club. And then they have a separate club, which is like a social club, which is the ranch. And I mean, it's rumored that F. Scott Fitzgerald wrote the Great Gatsby there. They've just got a great brand story. And it's 20 minutes from the gatehouse over the hill into. You see nothing but old oak trees and hillsides. And you've got a little ocean peekaboo views down in the Pacific Ocean. But it's probably one of the most unique escapes I've ever been to.

[A]

Wow. Beautiful. I just had to ask. That just came to mind right now.

[B]

Yeah. Your next question was on.

[A]

On your. On your personal goal and a family goal.

[B]

Family goal is I just want to see everyone be healthy and successful. Like, how do we do? How can we spend more time with each other and less stressed out about trying to grow our businesses? And my fiance is an interior designer, and she's just crushing it. She took over her mom's business that she had for 30 years, and I think she has 14 homes in her first Year that she's kind of ground up construction on doing all the design for Beverly Hills, Bel Air, Newport beach, and she's just crushing it. And then with our, with our. With myself personally is to be able to, you know, retire in the next 15 years, but not retired to not do anything. Just keep doing this as kind of cashed out and keep this kind of.

[A]

Like you're like almost there now. You don't have to grind as hard as you do.

[B]

Right, right. Actually, we do. But. But I think just keep doing this. I mean, how do you drink wine, smoke cigars, play golf? Yeah. You're interesting people. What would you do?

[A]

You got the coolest job there is. It sounds like you are retired.

[B]

True. Sometimes.

[A]

Yeah.

[B]

Sometimes it feels like that.

[A]

Otherwise you wouldn't voluntarily show up at 4am it's true. You know, you wouldn't want. You.

[B]

I love it.

[A]

You love it.

[B]

Yeah.

[A]

You get. You got a cool job, you meet the coolest people on earth youh know, you get to travel and, and you get to have fun.

[B]

Absolutely. Absolutely. And the business really, really has another side to it, which we work with luxury brands because they want to get in front of this demographic. So the access to things just gets more interesting. So to go to F1 or go to the Masters or go to the Concord Elegance, it's interesting to have relationships in the.

[A]

Been all those.

[B]

Oh, yeah.

[A]

I've never been in any of them.

[B]

What we need to get you set up.

[A]

Yeah, I'm still low class, so it's.

[B]

Part of the perks of our Belle Reeve membership with the virtual country club. So you have access to all of these events as well.

[A]

The virtual country club sounds amazing, by the way, because it opens you up to just a world of experiences.

[B]

It does. So we not only access to the private clubs, but also we track what's called the billionaires calendar. So it's the food and wines, it's the Art Basels, because that's kind of where everyone travels anyways. And so to have access to tickets and those experiences. And here's where you're going to stay, here's where you're going to have dinner, you're going to go to this paddock, you're going to meet these people. It's a great way to go. Even if you went with your spouse or with a Buddy to meet 20 other 200 other people that have similar interests to you.

[A]

Very nice.

[B]

Yeah.

[A]

And then. Okay, cool. All right, last question.

[B]

Okay.

[A]

When you're in front of the pearly gates, what do you think? God's going to tell you.

[B]

I try to do good for anyone that needs help, be it. It's their business and they need an introduction or. Or someone needs a lesson in terms of. My kids have gone through things where friends have been disrespected, and I. We go up and, you know, have. We had a. My daughter had a friend that was asked not to attend a birthday party. So I pulled my daughter out of that birthday party and we took her for coffee. And it was a. That was a learning experience for everyone, right. Of how do you do the right thing? Because you don't need a lot of friends. You need a close circle around you. And so to get to the pearly gates and say you did as many of the right things as you could along the way is, to me, the ultimate. You know, you leave an imprint on as many people as you can. So he did this for me and wanted nothing in return.

[A]

It's awesome. It's awesome. Well, God bless you. God bless the family. I hope you hit every one of your goals. Zach. You've been a pleasure to have on the show. Coffee's first closer, Zach Bates, the original guy who's promoting these private gloves and elevating these experiences worldwide.

[B]

Thanks so much, Zach.