Page 31 - GBC spring 2016
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F
BOTTOM LINE GENERATORS
Make
This
Your
Most
Profitable
Season Yet
or the most part, operators have experienced an increase in rounds as weather for 2015 was quite favourable in most provinces; however, the key question is whether this increase in rounds resulted in higher net profit.
The evaluation of a golf course’s performance needs to focus on bottom line generators, including green fees, member dues, cart revenue, and driving range revenue.
In each of these categories the cost of delivering the service is relatively fixed; whereas the costs associated with food and beverage sales are variable and result in a gross margin of (say) 20%, and merchandise sales result in a gross margin of (say) 25%.
In light of the above, improvements in bottom line generators create the greatest opportunity. So, as an operator, what’s next when planning for 2016?
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