Page 8 - GBC Fall 2022 Eng

Message From The CEO, NGCOA Canada • Jeff Calderwood
Don’t Let Inflation Dictate Your End Results
Easier said than done, but not impossible!
Throughout the country golf courses are battling the latest challenge, inflation, as are virtually all other industries. So, Golf Business Canada dives into that sensitive topic in this issue with our feature article by Rick Young.
I’m always impressed by the resilience of golf course operators. And once again, I see various innovative strategies emerging as they avoid surrendering to the impact of those drastic expense increases.
Fortunately, the high demand for golf does allow for part of the solution to be accomplished through rate increases. With so many courses now engaged in some version of dynamic pricing, we are seeing numerous courses leveraging that high demand into significantly higher rates.
To a certain degree, golfers are already conditioned to pay more for most everything in their life these days. Golf ought to be in those expectations too. However, price increases can only be pushed so far, and the higher expenses are still eroding the margins that courses deserve when demand is high.
The First Tee
Therefore, the better operators are going well beyond rate increases, combining that with other strategies to achieve the overall goal. Here are a few examples as thought starters that could be further developed for your own situation:
• Redeploy staff into more focus on the highest priority needs, creating more efficiency. • Offer non-cash raises that appeal to staff, such as more flex hours.
• Shift to “just in time” strategies wherever possible, at least temporarily.
• Drop certain F&B offerings, such as eliminating breakfast, shorter hours, limited
menus.
• Reduce portion sizes in tandem with more modest price increases.
• Bring more IT costs in-house rather than totally outsourcing.
• Monitor all expenses more frequently, identifying any concerns immediately. •Moreemphasisoncommunicatingyourvalueproposition,especiallytheexperiential. • Temporarily reduce maintenance budgets.
• Leverage your supplier sales reps advice, ensuring full awareness of supply chain
issues.
• Manage your ARs more tightly, better aligning your current rates with future
expenses.
• Take full advantage of the NGCOA Canada’s Golfmax Program for supplier savings. • Focus more on serving your best customer profile, maximizing profit efficiency.
• Don’t delay necessary price increases, react immediately when needed.
Several other articles in this edition of Golf Business Canada also relate to overcoming inflation. Cameron Thomson advises on catching utility bill errors; Tara Ciecko on maximizing the potential of intermediate golfers; and Greg Chambers profiles some very creative new services at Hammond Golf & Country Club; among other valuable content.
Enjoy this issue of Golf Business Canada, and don’t let inflation dictate your end results!
Jeff Calderwood, CEO NGCOA Canada jcalderwood@ngcoa.ca
8 Golf Business Canada