10 | operational focus
operational focus | 11
Rounds played – why track
them and what can you learn?
About JBAS
JBAS is an independent advisory
company offering dedicated,
professional advice to the golf and
leisure industries. Over the past seven
years Jeff Blunden, the Principal of
JBAS, has provided specialised advisory
services to over 75 different projects in
the Australasian region.
Contact Details
Suite 1, Level 11,
56 Berry St North Sydney, 2060
P: 02 9455 0442
M: 0412 989 222
E: [email protected]
W: www.jbadvisory.com.au
The number of rounds played at a golf facility sheds significant light on
its likely operating health. If properly and consistently recorded, they can
also be inputs into a number of key measures and ratios which in turn
help to identify the strong and not so strong parts of any golf operation.
These measures turn results you might normally see in a P&L statement
into relevant and meaningful statistics as revenues and expenses are
measured against the actions that typically generate them.
The following will outline what the key measures concerning rounds
played at a typical facility are and will hopefully encourage all, at least
from this moment forward, to become acutely aware of their rounds
played numbers and as a result be in a position to make more informed
decisions regarding its business.
In late 2004 it was reported in the Australian Golf Industry Report - 2004
that 30% of clubs at that time did not report annual rounds played. For
these folk getting to the start line of the measures that will be outlined
shortly was then (is still?) not even possible. The 2004 report went on
to say that “...for clubs to make more informed decisions about future
operations, it is imperative that all clubs put in place systems to track
rounds played as significant knowledge can be extracted from this
information.”
FAST FORWARD: A recent 2009 Australian Golf Industry Council (AGIC)
press release now states that “...The AGIC is aware that many golf clubs
across Australia already collect information regarding rounds played at
the club and this is analysed at management and Board levels regularly.”
Based on this statement and a 2008 GA survey finding, it appears that
more Clubs now do track their rounds and are now at the start line
or are already running in the rounds reporting and subsequent key
information race. (For a copy of the AGIC announcement, go to
www.agic.org.au)
Why track rounds?
As managers and Boards look at their facility and try to figure out how
they can make more (some) money from it they typically overlook
that there are actually two general ways to make this happen. Two key
drivers exist – demand (people) and the spend they make (revenue).
What needs to be determined is which one you are actually trying to
influence. This will determine how you will set up your strategy and
then execute and measure its success. There are three ways to make
money.
1.
2.
3.
Get the same amount of people to spend more;
Get more people to spend the same amount (or more); or
Get less people to spend more.
So if your strategy is to increase the spend side of the equation, then
to determine spending patterns you require a common denominator
that reflects visitation. In golf‟s case it is rounds played. Granted, many
people visit golf clubs without playing golf, however in order to obtain
some consistent spending measures, rounds played data is currently
the best available and measureable proxy for visitation. This will be the
case until the time that club IT systems get to level where all social visit
frequencies \