Do clubs really have to be cheaper?

29 June 2026

One of the most common comments I hear is that clubs can, and should, sell alcohol cheaper than other venues.

It's an idea that has been around for decades. In many cases, it was probably true. But the reality today is much more complex and, in many ways, that expectation is no longer sustainable.

Because clubs are not-for-profit associations, its often interpreted to mean that we don't need to worry about profitability. But being a not-for-profit doesn't mean not making a profit. It means that any surplus is reinvested back into the club, rather than distributed to shareholders or individuals.

And that is where the conversation needs to shift.

The reality of running a club

Clubs today operate in the same economic environment as any other hospitality business. We pay the same wholesale prices for alcohol, the same and increasing wages, the same power, insurance, compliance and licensing costs.

In may cases, we also carry a heavier burden; large, ageing buildings that require significant upkeep.

Unlike newer commercial venues, many clubs were built decades ago. They are part of our identity and history, but they also come with very real costs. Roofing, plumbing, electrical systems and accessibility upgrades (not to mention strengthening projects). These are not small expenses, and they don't go away because we keep prices low.

The cost of 'keeping it cheap'

For many years, some clubs have prioritised keeping prices as low as possible for members. That decision was often made with the right intent, providing value and looking after members.

But in some cases, it has become a cost.

Deferred maintenance. Ageing facilities. Limited ability to invest in upgrades or improvements.

We are now seeing the consequences of that. Committees and members are being faced with large, sometimes urgent repair bills that cannot be avoided any longer.

In many ways, it’s similar to what we’ve seen with infrastructure more broadly, if you don’t invest consistently over time, the cost doesn’t disappear, it just gets bigger later.

The pressure

This issue creates a particularly challenging position for some club committees and management.

On one hand, there is a clear expectation from some members that the club should offer cheaper prices. Committees hear it regularly and they feel a genuine responsibility to meet those expectations and keep members happy.

On the other hand, committees have a legal and governance obligation to act in the best interests of the club. That includes ensuring that the club is financially viable, maintaining appropriate margins and safeguarding its long-term future.

These two pressures don’t always align.

Holding prices artificially low may feel like the right decision in the short term, but it can undermine the sustainability of the club over time. Equally, making necessary pricing adjustments can be uncomfortable if it risks member dissatisfaction.

It’s a balancing act, but its also a leadership responsibility.

Committees are not there simply to reflect immediate sentiment. They are there to make informed decisions that ensure the club is still here for the next generation of members and the generation after that.

Shifting the mindset

The question we should be asking is not ‘why isn’t the club cheaper?” but “how do we ensure our club is here for the next 10, 20, 50 years?”

That means that pricing reflects real costs, generating enough surplus to maintain and improve facilities and investing in the future of the club, not just the present.

This isn’t about abandoning value for members. It’s about redefining value in a way that ensures clubs remain strong, vibrant and viable.

The bottom line

Clubs don’t exist to maximise profit, but they do need to make enough to survive and thrive.

The expectation that clubs must always be the cheapest option is outdated. In today’s environment, it can actually undermine the long-term health of the very institutions we care about.

Committees are often making difficult decisions in the middle of that tension, trying to balance member expectations with their responsibility to protect the club’s future.

If we want our clubs to continue serving their communities, providing connection and preserving their unique place in New Zealand life, then we need to support those decisions.

And sometimes, that means accepting that the club might not always be the cheapest drink in town, and that’s okay.

Clubs New Zealand