Ramblings on Golf Club finances.

[USER1999]

For the sake of arguement here, I am talking a members club, vaguely non profit making, doing ok in the current market. Income roughly equals expenditure.

I was quite suprised at how the expenditure versus income breaks down.

For instance, subs was 60% of income. Fair enough. societies were 11%, and bar sales were 26%.

For expenditure, rates rent and insurance was 12%, depreciation was 10%, admin was 20%, maintainance was 5%, bar expenses 22%, and the course 25%.

So what do I learn from this.

Only 25% of the money coming in is spent on the course. Flippin heck. This is what the whole shebang is about, and we spend naff all on it, and yet expect it to be perfect.

Far from making a big contribution, the bar is cost neutral, pretty much.

Societies. I am constantly told that we need societies to make the whole thing work, and can't do without the money. I have never seen this argument, and have always considered that an increase in subs would be viable.

Say the 11% is roughly £100k. If there are say 650 members, then the subs would go up by £154, and we would never see another society. Hooray. Let's do it.

Obviously if all clubs did this, societies would disappear, and I do belong to one, and this would be a shame. But can we do it at my club? Please?

 

[Fyldewhite]

Like to see you get that one through an AGM !!

Societies just need to be managed better in some cases. I'm a member of a club but also play in the works society. We have the odd problem with members on our monthly outings. Usually the ones who have failed to see that the society visit has been advetised well in advance and then turn up and get all hot and bothered.... who's fault is that?

Mostly though we play at quiet times in the week just after members only times and have no problems. I agree that when badly managed they can be a problem but that's up to each club to sort out. Also agree that they are not the financial cornerstone that many make them out to be but clubs are businesses and it's a lot to turn away..."every little helps".

 

[brendy]

I have no problem with societies playing our course off peak times, it keeps our subs down (ha!) without them things would be a lot harder.
What grinds my gears though is when a club is full of skilled workers each of who would gladly help out if asked, ie glaziers, IT folk, joiners, electricians etc. How hard would it be to strike up a register of skills and when work is needed in the club these guys get first preference to get a cheaper quote in and help both the club and themselves. A recent example where this didn't happen is our clubs hallway carpeting. I think we paid something like 6 or 9k for what didn't seem to be an awful lot of materials, several folks mentioned this just after it happened.... Too late!

 

[drawboy]

Years ago at a club I was at they wanted a bridge over a small beck, as my father and I were Bricklayers we gave a really low price to save the club some money, not a chance, they paid a firm at least 2 grand more than our price, fair enough they made as good a job of it as we would have but paid out a heck of a lot more for it.So I see this as a good idea, providing they don't take the proverbial and expect the work doing for nowt. Most would do the work depending on cost for a reduction from their subs.

 

[HomerJSimpson]

I think a lot of clubs are reliant on socieities. They do bring revenue in not only in the cost of the day but also over the bar. We're quite lucky in that we don't have a huge number, they are all midweek and are usually advertised well in advance so you know when to go out to avoid them.

 

[USER1999]

But the bar figures show cost neutral, so no, rather than have 2 bar staff on to cope with said society, and the members bar, only have the one on, and what you lose in takings, you save in wages.

 

[HomerJSimpson]

I hear what you are saying but your club (correct me if I'm wrong) has a waiting list it seems happy to keep so how do you get the extra members in to reconcile against. I know if you go into the bar at my club some weekdays it is very quiet. We only have one member of staff on usually unless we have a society and thenthe salary is offset by the amount taken over the bar anyway.

I do agree with one thing in the original post though. Only 25% spent on the course seems a small investment in proportion to income. Maybe because your course is much there is less maintenance and structual work to be done on it. Mind you every club will moan about the condition of the course at some point and even if 100% of income was re-invested into the course (will never happen of course) there will always be a disgrntled member

 

[USER1999]

But yes, part of it is there is waiting list, so bung the subs up, swap a few members around, and bingo, no societies.

Actually, that isn't what I want. Just get rid of the 36 hole guys, and clear the tee by 2.30 every day. That would do it for me.