Little can do more harm to a club’s reputation than a worn-out look or feel in the clubhouse, out on the course, or anywhere else on your campus.
One of the “rites of spring” for our family is a Hilton Head vacation. We’ve been doing it for almost 25 years and I never tire of the sun, sand and relaxed atmosphere that for us marks an end to the cold and snow of another Midwestern winter. The combination of Low Country people, food, recreational activities and ambiance is a beautiful thing.
And I actually look forward to the drive between Cleveland and Hilton Head every year—the 11-hour trip is right at the end of my tether for miles and time in a car.
Still, eleven hours behind the wheel is a lot of windshield time, and on the drive home it struck me—very little road construction to deal with this year. Where were the orange barrels? The absence of construction delays compared to prior years was a welcome relief. But I also wondered if I simply got lucky with my timing of the trip, or if I was the beneficiary of “deferred maintenance” on the roadways as a result of budget shortfalls and cuts at the federal, state and local levels. The lack of roadwork projects this year was nice for the short term, but it only delays the inevitable, as the work has to be done sooner or later.
Then I got to thinking about “deferred maintenance” in our market. Are the orange barrels out at your club? Conversations with GMs from around the country confirm that capital and maintenance/repair budgets have recovered from the depressed levels of the past few years, but to what degree? Little can do more harm to a club’s reputation (and its ability to not only attract new members, but retain those you already have) than a worn-out look or feel in the clubhouse, out on the course, or anywhere else on your campus.
In years gone by, most clubs relied on a steady flow of new member initiation fees to fund their capital projects and/or maintenance needs. In today’s market, a lot of smart clubs have instituted a monthly charge to members for a “Sinking Fund/Rainy Day Fund/Capital Fund” (choose your own term) that can provide for these ongoing spending needs. My guess is the odds are good that most members recognize the need for it.
On the other hand, I see more clubs with a monthly or quarterly food minimum than a monthly capital dues assessment. This makes no sense to me—and in fact, if this is the case at your club, I suggest you exchange some or all of the food minimum charge for a capital fund charge. The net result is no increase in monthly cost to the members, and at the same time you will:
- Demonstrate the club’s, and your own, commitment to fiscal responsibility.
- Compel your team to create an F&B experience that will not only be self-sustaining, but will drive increased use of club facilities and member satisfaction. And no excuses here—clubs all over the country are achieving astounding results with upgraded and enhanced foodservice operations.
- Establish the funding that enables you to address facilities issues proactively rather than reactively.
Some may argue that capital assessments should be considered only in conjunction with major renovation projects or for debt restructuring or retirement. That may have been the case in the past. But establishing this funding strategy now is the right idea to stay relevant not only for your members today, but well into the future.
Orange barrels are a good thing.
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