Tag: customers

Constantly Thinking About Budgets

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With most 2021 budgets prepared and submitted, many golf course superintendents and their managers are reviewing and updating agronomic plans for the coming year. A sound agronomic plan is a living document that must anticipate upcoming conditions and respond to emerging circumstances. In volatile times, certain constants must be considered. Let’s evaluate some of those constants in the context of today’s conditions and challenges and see how they might affect budgets.

Constants

Certain irrevocable factors influence the proper care and upkeep of golf facilities with budgets leading the list. Your budget is the mathematical “North Star” on which you steer your performance. It’s also a measure of your intentions. One superintendent summarized his budget by saying, “You can run but cannot hide from your budget, so you might as well pick it up and run with it.” In other words, dig into the process and learn to deal with the variables.

For 2021, here are several budget guidelines to understand:

  • Most planners expect a choppy year ahead. Set aside funds for the unexpected events that will emerge and keep your powder dry.
  • Plan for three categories of expense. Fixed expenses for such budget overhead requirements as utilities and equipment leases are unlikely to change, although careful budget managers ask for relief on such fixed costs through abatements or forgiveness that may help to stretch budgeted resources. Second, labor costs will ebb and flow as impacts from COVID-19 and closures of club facilities will place irregular demands on labor dollars. Give yourself some room to maneuver. Third, discretionary needs will emerge as fellow managers and golfers seek new solutions to new problems. So be prepared.
  • New ideas and methods introduce new solutions for labor and overhead costs. Be alert and watch for new and innovative possibilities that make your work eventful and add purpose to your accomplishments.
  • Changing weather patterns demand that golf course operators become better informed and more proactive in planning care and upkeep practices. While much of your work is influenced by changing weather conditions, superintendents know to rely on the National Oceanic and Atmospheric Administration for accurate weather pattern forecasts that help them more accurately plan and schedule their maintenance practices.
  • Golfers’ expectations continue to escalate. You can count on golfers wanting “more and better,” which means course managers are always searching for process and results improvements. For 2021, golfers’ expectations include enhanced sanitation and clearing of on-course comfort stations, golf carts and practice range equipment. Next year will demand sustainable care and upkeep standards despite irregular resources that may be interrupted by supply chain and budgetary limitations.

Upcoming Conditions

Course managers must anticipate changes being introduced for labor management and workers’ expectations. Such changes as reducing the number of workers exposed to one another is requiring managers to divide crews and adjust shifts. Your team’s protection is vital.

Changing climatic circumstances requires enhanced emergency preparations. Consider your clean-air, fire and immediate-notice evacuation plans for workers and affiliated departments. Your liability insurance carriers are a good starting point for collecting guidance, as are emergency preparedness agencies in your vicinity.

Emerging Circumstances

Develop your short list of resources on which you will draw for new threats and opportunities. The Centers for Disease Control and Prevention and the National Institutes of Health are examples of resources on which you can rely. The coming year will reveal new problems, challenges and circumstances with which golf course managers must reckon.

Emergency services professionals, such as your local health care, water supply and cyber-security experts, are valuable resources on which you can call. Beyond your club’s insurer, call on fire and police experts to provide guidance in planning ahead.

This article was authored by Henry DeLozier for Golf Course Industry magazine. 

Playing the Long Game

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How do you plan for the future when the ground is shifting beneath your feet? When every day seems to bring a new forecast about the health of our fellow citizens, our economy and our environment?

The answer is simple for some. They’ll simply turn away from long-term opportunities and challenges while taking refuge in what seems slightly less murky: tomorrow, next week or next month.

That approach may feel safe, but it’s not what your board or your ownership expect. They hired you to be the long-term caretaker of their clubs and facilities and the guardian of their relationships with loyal members and customers. They expect someone in your position to have a plan, not only for getting through our current mess, but also for positioning the business for success well into the future.

So, what are those kinds of leaders doing to prepare? Our observations suggest five things at the top of their lists.

1. They’re looking ahead … way ahead.

Some economists predict that the U.S. economy will not return to pre-pandemic levels until 2023. That means visionary facility managers and club leaders of every description should be looking not only around the corner, but also over the horizon to get ready for a post-pandemic world. Those leaders see things differently.

  • They see opportunity rising out of increasing golfer participation, as families and friends view golf courses as a primary platform for socialization and outdoor exercise.
  • They see increasing outdoor dining options, where picnicking, farm baskets and patio-dining alternatives are meeting the need for socially distanced outings.
  • With high unemployment levels, they see opportunities to upgrade their staff’s performance and service levels.

2. They’re taking care of their people.

In several recent national polls, including Gallup and Harris, a strong majority of employees say they feel their employer is looking out for their best interests. (Similarly, a survey of private club members in the U.S. and Canada conducted by our firm found that members feel highly positive about the performance of their clubs throughout the coronavirus crisis.)

It’s easy to show your team members that you care for their well-being and that you respect their dedication during difficult times. You can write a personal note of thanks and invite them into your office for a conversation and remind them of their importance. You can encourage them to bring their family to the course as part of “family day.”

Your best people are your most important asset. You’ll need them prepared and energized to lead your business into the future.

3. They’re aware of shifting market conditions.

External influences are changing our views on leisure activities and disposable income. It’s critical that club leaders understand the unbiased and unvarnished trends influencing golf.

In the GGA Partners’ survey, roughly four in five members reported either an increase in importance or no change in the club’s importance in their lives. However, survey respondents were not optimistic about their club’s financial position. Seventy-one percent expect a decline in the financial health of their club. Fifty percent cited current economic conditions and 42% said a decline in member spending would lead to the decline, which 20% predicted would be “significant.”

A surge in golfer participation that many courses have enjoyed in the past several months should not be construed as a guarantee of future success. When there are few other distractions, golf is proving a popular, socially distanced alternative entertainment. But leaders planning for the long term are taking nothing for granted and shoring up service levels to make sure they continue to deliver unquestioned value.

4. They’re realistic and preemptive.

Hopefully, an approved coronavirus vaccine will be rolled out soon. If an approved vaccine is delayed, however, progressive leaders have contingency plans. For golf superintendents, club managers and other leaders, realistic planning requires careful review of revenue capabilities and overhead arising from on-going operational costs.

Here are some steps to take in preparing for 2021:

  • Review your staffing model and search for efficiencies. Now may be time to update and refine your organization of management, taking into account changing attitudes about work/life balance.
  • Re-think your plan of work model. Perhaps mowing in the afternoons opens up desirable morning tee times and makes your work on less crowded fairways more efficient. Likewise, evaluate work such as tree trimming and bulk clean-up and consider outsourcing or moving such projects to the off-season.
  • Monitor inventory levels. There is no need for a full fuel storage tank during the off-season, for example. Procure what you will use more efficiently.

5. They’re planning on success.

Imagine your facility on its best day ever. You and your team make those days happen when you dream big and work toward a future that delivers the best of your talents and imagination. Don’t be shy. You can be realistic while also making sure your plans include a few “shoot the moon” and BHAG (big, hairy, audacious goals) aspirations.

Dramatic and unpredictable times like those we’re living in create multiple challenges that can seem daunting. But they also bring out the best in those who plan for success.

This article was authored by Henry DeLozier for Golf Course Industry magazine.  Henry returned GCI’s Beyond the Page podcast to discuss long-range planning in a conversation with Golf Course Industry managing editor Matt LaWell. Listen to the playback below and visit the GCI website to subscribe to the Beyond the Page podcast.

 

(16-minute listen, 02:30-18:50)

Prioritize Customer Service to Maximize Revenue

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Detailed research shows that 93% of customers admit to online reviews impacting on their purchasing decisions*.

For golf clubs, this means they need to find new ways to ensure exceptional service is embedded at every turn of the customer experience. Because wherever there are flaws, the chances are, someone somewhere will know about them, as GGA Director Asia Pacific, Paul Hinton, explains…

If there is a reality club managers need to come to terms with, it is that internal experience impacts external perception, more than ever.

But rather than becoming fearful this will somehow expose areas of weakness, it should be viewed as an opportunity to take a strategic view of service quality. This will help to focus and optimize all aspects (and generate additional revenue), while providing a platform to broaden out to new areas, such as Functions and Events where I have personally witnessed the transformational impact this can have.

Putting needs of the customer first

Clubs are well-known as places where members can socialize, relax and avoid the commercial pressures of the outside world. So, while you may speak to your teams about upselling, cross-selling or add-on sales, to the customer this should only ever be seen as ‘service’.

Whether staff are trained to offer a schooner of beer rather than a middy, a cake or dessert with a coffee, or to pick up on deteriorating grips on members’ golf clubs when they are being cleaned this is all part of putting the customer first.

Providing the service offering is delivered with integrity, the member will feel valued and looked after. Not only will the club benefit from increased revenues in the short-term, but can expect favorable online reviews and an enhanced perception of how the club is run and how customers value it.

Serving as one

A club may account for multiple businesses, from the self-employed PGA Professional to franchise caterers or even events teams, but this is of no significance to the customer. Online reviews will attach themselves to your venue, your brand, whether it is golf, a particular event, a lesson or otherwise. Therefore, the need for a consistency in service quality across all aspects of the venue is critical to its wider success.

At a fundamental level, regular meetings between all business owners should take place, though club executives and/or presidents should take the strategic lead in ensuring an exceptional and consistent customer experience is delivered across all aspects of the business.

Exploring new opportunities

Members needs and expectations are changing; the likes of traditional three-course meals and formal dining is on the decline. As dining trends change, and with a greater desire for socialization emerging, developing a calendar of events for members that offers a range of experiences to different demographic and interest groups represents a sound strategic direction.

A creative and innovative events team is a great starting point to shape this direction. By taking traditional events and transforming them into more contemporary and family-friendly occasions, clubs can better accommodate the needs of its members, create the opportunity to deliver more exceptional service and, crucially, differentiate itself from its competitors.

When it comes to activating an events strategy, share the enthusiasm by planning with the operational committees to engage their help in promoting the event.

Don’t underestimate the effectiveness of word-of-mouth, supported by a communications plan. The event experience starts with the promotion of the event and the booking, so if that is online, ensure the website and booking platforms are functioning correctly and that club staff are briefed on the event. Suggest to members, to extend the invitation to fellow members and or guests during the booking process too.

Service at the event is a critical success factor, from the moment members and visitors arrive at the venue to the moment they depart. This is where trained staff can play an influential role in exceeding expectations by being professional, courteous, respectful and engaging.

Ideally a ‘wow factor’ needs to be created, from room theming to entertainment, ensuring attention-to-detail is at such a level, it provides a positive talking point for members and visitors to take away with them.

Although this may sound like a significant undertaking, I have seen clubs increase food and beverage revenue from $2.5M to $5M in three years, driven by successful club events, improved service and products, innovation and improved marketing and communications.

*Research from Podium ‘2017 State of Online Reviews’ available to view here.

Paul Hinton is a Director of GGA’s Asia Pacific Office, located in Sydney, Australia.

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