Setting the Thanksgiving Plate
Allen DePuy
Broker, Consultant, Turnaround Management Specialist to Underperforming Businesses
There are many things this year we can be thankful in the golf industry.
Shameless plug …
As a Board Member of Little Linksters – please consider donating this holiday season
So, when someone asked me this week if the Golf Industry was a Thanksgiving Dinner how would you set your table … (yes, it really did happen!)
And, perhaps because I am hungry as I type this… I thought this would be a wonderful analogy to strip down club profitability from the successful operations I have witnessed in my travels.
The Main Course – Dues and/or Green Fees bathed in Cart Fees as the gravy on top.
You drive these profit centers by offering the best possible value within your market!
Notice I said value … not best course conditions, as value can be perceived differently from one person to the next. If you CAN reinvest in a new bunker project, and it will allow for you to grow rate - do it! However, if you are in a market of A+ courses, and your financial constraints allow for a B+ - be the best B+ you can possibly be.
Sides – This is the Mashed Potato, Corn Bread Stuffing, Mac-n-Cheese and Green Bean Casserole of your dinner! Feasting on … Driving Range, Bar Sales and catered Banquet Events.
These are those items that return highest profitability despite cost being associated with each of them. Although be careful with catered events as the old saying goes – “sales cures all ails”, but as I like to add “It can also mask inefficiencies” – when managed correctly they can be very profitable, and when not… OUCH!
?A Little on the Side of the Plate – Golf Shop Sales & Restaurant Food – the Cranberry Sauce and Creamed Onions.
You know what I’m talking about … the little scoop on the side of your plate to be courteous. Each help to complete the experience for your guests, but both require a LOT of work for generally a smaller return.
As you look ahead to 2023 - focus your energies on those profit centers that will provide you the largest return on your greatest capital – your personal time! Increase those areas that increase your properties’ valuation, and consider removing yourself from those areas that do not – example – should you consider outsourcing your catering operation?
And, if you could use an independent, objective opinion on improving your business operations. Give me a call … happy to chat.
Oh, I almost forgot dessert – how about a good Shoo Fly or Apple Pie? If in Pennsylvania and/or Virginia, check Dutch Haven or The Apple House … with a scoop of vanilla ice cream on the side OH MY!
Wishing you and your family and safe and enjoyable Thanksgiving holiday.
Allen