Wolf
Well-known member
Smart business management would be able to allocate and forecast revenue based on EBITDA and P&L analysis accurately from membership revenue each month and highlight cost effective areas and where money can be allocated for improvements or cost saving. Any joining fee revenue therefore could then be put aside purely as profit, yes the management could allocate these funds back into club accounts for improvements in other areas but smart business management would have had that covered off already using the known revenue, year on year growth and expenditure. So therefore should able to sit pretty with the additional 30k as pure profit. Which that in itself if charging a joining fee is good business especially for those who could get to pocket it.I wouldn't entirely agree with that. The membership revenue is a pretty much a fixed amount each year (give or take a few changes in membership) and the club will base it's annual budgets around that. If you get 20 new members a year at £1500 joining fee then the club have an additional £30k that they can invest in improvements. My club has a joining fee, we have very few people leave each year because we all feel we have invested in the future of the club.
I'm not trying to say your wrong and I'm right. There is no right or wrong in this debate because there reasons for both side of the debate. In your instance at your club you are quite clearly right as its a model that works and people are happy to accept and I've no issue with that whatsoever. My own personal choice is I would not personally pay a joining fee regardless of the club.