Managing through Madness...

Maybe you’re an owner? … or, maybe you manage a club? Either way 2018 will go down as a horrific weather year for many parts of the country.

In some parts of the Middle Atlantic operators I have spoken with have recorded 90 days of the playable days had measurable rain fall. Think about that… almost half the golf days it has rained!

As one course superintendent quipped – “well it was nice one day in June”.

With so many courses now-a-days finding themselves already teetering on the financially edge as it is … IT OFTEN BECOMES NOT ABOUT MAKING THE RIGHT DECISION, BUT INSTEAD THE MAKING THE NECESSARY DECISION.

This week I met with a course owner to discuss their property. As our conversation began it kinda went like this…

• Me: How bad is it?
• Owner: Well, we are concerned that if we sell memberships now in the fall, and take their cash. We may not be open in the spring when the golfers come to play.
• Me: Ok, sounds like we better get to work …

As an Expert in the improvement of financially distressed golf properties. I have been able to find the Real Answers and Practical Solutions to do more with less with remarkable success!

I know you are asking yourself - Ok ... How?

It almost becomes like being in an Emergency Room Triage Unit. You must address the most critical wounds first. Below, I share with you my five steps to improving your business, and I assure you it is a lot easier to type than do.    

1. Change Your Culture (and your mind set) - As things have slipped at your property, it is inevitable that a culture of getting beaten down sets in. Remember the Rocky Balboa quote… “It ain't about how hard ya hit. It's about how hard you can get hit and keep moving forward. How much you can take and keep moving forward. That's how winning is done!”
2.  Know Your "True" Market Position - In my forthcoming book there is a chapter called Swordfish in Double-wide. Yes, that did happen, and No I am not making it up. The point is if your market, course or financial condition only permits you to be a B level course … then be the very best B level course at the best value you can be – find your niche and drive that position! Do you know that position... honestly and objectively?
3.  Rate vs. Volume – Aaaahh … the basis golf management and dynamic pricing. I like to use the analogy of you can either be McDonald’s or you can be Ruth Chris Steakhouse – both are successful business models – which one are you? For me, I’m a firm believer that most courses would benefit from driving more volume to their property than concern for their rate. It creates more revenue in other revenue centers, allows you to capture data for continued marketing and here is the most important point they get to see, touch and feel the passion how you are improving their future home club. Remember my conversation above… these owners have done an amazing job improving the playing condition of their property – problem is no one knows it because rounds have been down due to the rain this year.
4.  Marketing – It all comes down to Marketing. People need to hear your message. The saying goes – “The largest database wins.” Is your counter staff capturing data? Is your website capturing data? Do not have a large database … social media allows you compete with anyone for practically nothing, however paid sponsored ads pay big dividends if you can spare the money. Create the Facebook, Twitter, Instagram accounts… and start posting relevant content. Notice I did not say sales offerings… if you built a new tee box on #16. Announce it … take pics from it… do a video with your golf pro hitting a shot from it… interview a supporter of the club about it. Get the message?? Excitement sells… and it begins to change your club to a culture of selling.
5.  Benchmark Your Expenses – What is your labor cost as a percentage of revenue? How much are you spending on golf course maintenance? Recently worked with a club that had a labor percentage equal to 58% of their Total Gross Revenues… 58%!! Couple this with a 40% Cost of Goods on food … and this property was paying to lose money and that is BEFORE utilities, real estate taxes and course maintenance supplies.

These strategies are universal. They apply to private, public and municipal operations … need help put them to work for you? Reach out now … we would love to chat - 717.554.8519

CURRENT LISTINGS

For Sale - Paupack Hills Golf Club - Greentown, Pennsylvania - * Under Contract * Possible owner financing. Located in growing community of year-round residents

Learn More

* SOLD * - Scottish Heights Golf Club, Brockport, Pennsylvania

For Sale - Rolling Greens Golf Club, Newton, New Jersey

82 Acre Executive Length 18 Hole Club, Located less than One Hour from New York City, Ideal opportunity to improve.

For Sale - Lakeview Golf Club, Belmont, New Hampshire

Ideal re-development currently operating as Lakeview Golf Club, 175+/- acres, located in the popular Lakes Region of New Hampshire.

LOOKING ON BEHALF OF CLIENT(S)

We have a number of clients seeking very specific acquisition criteria:

Leasing – Client seeking long-term lease opportunities. Will consider all property types as well as alternative golf facilities such as executive and par three courses along the eastern seaboard.

Nine Hole Courses – Have a client seeking Nine Hole courses in close proximity to population centers along the eastern seaboard.

Development Opportunities – We also have a Development client that is seeking golf properties from Boston to Washington DC (and Florida) in close proximity to large MSA’s. The firm has the capital to close quickly, pay a fair valuation, and has a proven record to perform.

Hotel Sites – A new client is seeking to build hotel sites on your property. Ideal target is in close proximity to top or secondary MSA’s. This can provide an excellent “found” revenue stream and bolster your food & beverage as well.

Contact me and I will confidentially evaluate your situation and, if appropriate, make an introduction