Page 46 - Fall 2017 english

From an operating cost perspec- tive there are four major categories: pro shop expense, golf course maintenance, food and beverage, and administration – which includes marketing costs.
your PLAn For success
In light of the above, what are the next steps to develop the plan for success?
1. EvaluatE your coursE’s opErating procEssEs
This is a document which details how a patron is impacted by service. For example, evaluate the process a patron would take from the moment they enter your prop- erty until they leave.
This process needs to be evaluated based on playing golf, using the driving range and/or arriving simply for food and beverage or to purchase merchandise. The key is to measure the ‘touch points’ and service required for the patrons.
From a food and beverage perspective, it is important to eval- uate the various service levels required for tournaments, non-golf functions and day-to-day traffic for the golf course.
2. a) golf coursE MaintEnancE
Determine the costs associated with the non-touch points: golf course maintenance and administration.
For golf course maintenance, the quality of product is extremely important to retaining patrons. As such, it will be extremely impor- tant that any cost reductions are properly measured in order to understand the impact they have on meeting patrons’ expectations.
This is a cost centre that typi- cally has significant payroll costs and will have the greatest potential for future increases above inflation with expected increases to mini- mum wage. Golf course condition- ing is critical to meeting patrons’ expectations; as such, any reductions in cost need to be carefully evaluated.
“The key to evaluating future golf course maintenance costs is to ensure the ‘value for money’ perception by
your patrons is maintained.”
In addition, the owner/operator can evaluate maintainable acreage on their own. This evaluation should examine shot disparity of patrons in order to determine areas that may not require maintenance or require minimal maintenance.
Once evaluated, a cost reduc- tion plan can be put in place to manage only maintainable acres. In addition, an evaluation needs to be conducted regarding playing conditions, assuming various reductions in labour.
For example, what does the course look like if labour is reduced by 5%, 10%, 15%, or 20%? In addi- tion, will equipment changes help to reduce labour costs?
The key to evaluating future golf course maintenance costs is to ensure the ‘value for money’ perception by your patrons is maintained. As such, the playing conditions must always meet the expectations of players based upon the green fee rate charged.
Although this cost centre has the greatest opportunity for reduc- tion, be mindful that any percep- tion by patrons that golf course conditions are not meeting their expectations has the greatest risk for significant reductions in bottom line revenue.
b) adMinistration
This is an area where most reductions in labour are not seen by patrons, unless the reduction in labour and other costs impact a player’s ability to book a tee time or pay their green fee due to slow technology or administrative maintenance.
Administration costs are costs which are there to protect and manage the facility. All these costs: accounting, information systems, property tax, insurance, etc., are costs which can be challenged in the marketplace.
As such, quotations need to be obtained from various suppliers and property taxes should be appealed where appropriate. It is extremely important for the owner/operator to be up-to-date on the latest automation and marketing opportunities; especially with social media, since these changes will reduce labour and marketing costs with the greatest benefitofimprovingrevenuewith a reduction in associated cost.
3. pro shop
This area is the most visible ‘touch point’ and typically creates the first impression for patrons. As such, the experience must be friendly and efficient. In addition, the over- all experience needs to match the green fee rate charges. Automation and POS system will help with effi- ciency in payments and booking of tee times and cameras may save labour regarding the elimination of starters and rangers.
This is an area that has the greatest opportunity to save labour through automation and the ‘what if’ questions need to be asked.
For example, can I communi- cate with patrons when they arrive to ask if they want a power cart and if so, to please put their clubs on one of the staged power carts, then proceed to the pro shop for payment? Can cameras placed in
46
Golf Business Canada