York Urbanist

Curling Business – Expense Side

November 14th, 2015

A new curling world awaits those that spend with profit in mind.

“But why would we paint the lounge? That costs money we can use for other things. We’ll get the volunteer maintenance committee to wash the walls.” ….heard at a curling club board of directors meeting.

The unspoken issue in this scenario is that the curling club has not been socking away that capital fund that should have enough to cover that catastrophic eventuality – ice plant replacement. Within 20 years, your club will have to spend at least $150,000 to replace part of that plant and $350,000 within 30 years for wholesale replacement. And yet, clubs continue to apply duct tape to extend the lifeblood of a curling facility to up to 50 years. That scenario of a paint job would cost less than $500, retain members, attract new clients, yet clubs struggle to make the decision to spend.

A volunteer executive does not think like a business board. They do not relate expenditure as an investment. For every expense there must be a compensatory return. So think about the following question:

What will our next expenditure gain for our facility or club? Your decision should be based on both member retention and new client acquisition. Here are a few examples:

  1. Purchase new ice making equipment – This will become your number one priority in the future. Consider it annually. Without the plant, the curling club is simply a rentable void. This one expense is the reason to charge $50 annually (in addition to membership dues) to each player. Do not wait until September to find out you need a chiller. Member Retention.1003923_10151831490014709_339560760_n
  2. Design and build an industrial kitchen or plan for a caterer in a servery – This is a business planning exercise that should be reviewed every five years. Ask yourselves, are we in the business of food provision from which we can profit, or are our members/clients better served by a caterer? The caterer knows the food business and the club can charge rent to the caterer. The more meals served, the greater the rent that can be charged. Member Retention/New Clients.
  3. Services from business planner – This is an intangible expense that few clubs will consider. But it could derive the most benefit of any other cost item. The business plan could be prepared by a member, who would benefit from exposure to the club if he/she did it pro bono. But, it would be better accomplished by an independent planner who has no emotional attachment to the facility or members – objectivity. Member Retention/New Clients
  4. IMG_6578Update your interior at least each decade – Many facilities are caught in an era. Shopping malls require that their tenants overhaul their interiors every 7 years… for a reason. They want the changing clientele to shop. No one wants to go to a tired or dated store. Similarly, new curling clients want up-to-date facilities. By now, every curling facility lounge should have Wi-Fi. Brown panelling (1970’s vintage) should have been replaced or integrated into an attractive theme about the ‘70’s. Budget $30,000 each decade. If you have 300 members, then $10 of their fee should be earmarked for general updating improvements. Member Retention/New Clients
  5. TCSCC-130[1]Create an athletic club – Invest in a fitness facility or fitness equipment and use it to charge a premium or it could be an independent cross-marketing business. Curling is a sport. Appealing to the weekend warrior is now vogue. Fit members live and curl longer. Member Retention/New Clients.
  6. Marketing – The previous five examples are primarily meant to retain client members. Marketing expenses should be directed toward replacing the expected 10% attrition that clubs experience. Define your market by starting with the demographics of your municipality. Your club should reflect that demography. Your business planner should be able to define how to market, when to spend on marketing and where you get the biggest bang. New Clients

The expense side of the ledger should be considered an opportunity for curling in your community. If your stomach turns by the addition of $50 on annual fees, then relate the cost to going out to dinner once a year with a bottle of wine. For every expense there should be a positive impact. Whether it is to retain existing members or derive new clients – spend wisely. Enjoy the rest of the curling season, open your wallets and make the sport of curling part of your municipality’s culture.

 

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