President’s Patter – October
Published on 9th October 2023 in Members NewsMy term of Presidency of our Club is drawing to a close with only a few weeks left to run. This has given me pause to reflect on my 4 years on the Board and the many developments that have occurred over that time.
At the AGM in 2019 I said then that the only way that BGC could pay down its debt and survive as a club was by trading its way out. It has been significant that we have not only managed to pay down debt but have delivered modest if healthy profits over past years. Driving profitability is essential to any ‘Not for Profit’ organisation in order to service debt and to keep membership fees low, as every dollar made is churned back into the Club for the benefit of all members.
There are three main streams of income that service our Club and without them the survival of BGC going forward would be problematical at best. No golf club, with the very high costs required for Course maintenance and refurbishment etc can survive purely on membership fees unless they were set prohibitively high and thus out of the reach of many of us.
In no particular order Stream 1 is green fees or for a better word “Potential Member Fees”. Whilst we may speculate on the ‘damage’ visitors cause, we also have members who fail to repair divots, fail to replace rakes, fail to rake bunkers or fail to rake them adequately and drive carts with little regard for directional signage or observance of the 10 metre exclusion area. In any event our Club is not in a position to turn its back on the $300,000+ per annum in golf playing fees and cart hire they generate, without regard to any food and beverage earnings they generate for us. Nor can we ignore the fact that a number of these visitors then take up membership and actively lift the profile of our Club in the wider community.
Stream 2 is events and functions. Weddings, parties and other events form a significant area of revenue. Our team of staff have built an enviable reputation in terms of quality service and food. These sorts of functions increase the profitability of our bar far beyond what it would otherwise achieve with just members even if we introduced a bar levy as many private golf clubs do. Some members may complain about our hosting external functions but again every dollar they drive is churned back into the Club and adds to our bottom line. This also lifts our Club’s profile and also generates membership.
Stream 3 is membership fees. Over past years we have diversified the types of membership we offer with over 1000 members across all categories. Whilst our membership base is healthy it is nowhere near what is required in terms of full memberships to look at reducing green fee generation and this will remain the case for some time to come.
So, in short, the game of golf has changed and the idea of what it is to be a member of a golf club has changed with it. We live in a highly competitive society where we are all fighting for a dollar in very difficult economic times. By adopting and maintaining a flexible approach our Club is doing well with a current turnover in excess of three million dollars and I am confident we will continue to overcome future challenges and driving profitability to the benefit of all.
I would like to thank the majority of members who have embraced the changes required to assure the Club’s future. Have we made some mistakes? Of course we have, that is in the nature of the game and being in business. Will we make mistakes in the future? Of course we will, the important thing is to learn from them and not repeat them. Have we made difficult or unpopular decisions with some members? Yes we have for which I and the Board make no apology. Some of our members have strongly held opinions, however, a strongly held opinion even when shared by some others does not make it true or relevant. Whatever some members may believe, the Board has made and
will continue to make decisions which it believes is in the longer term best interests of the Club as a whole.
It has certainly been a privilege to be President of our Club and I have been grateful for the opportunity to be a part of the decision-making process. Thank you!
So…….I am off to sunny Queensland for some R&R for a few days. Happy golfing till I next I see you at the Club.
Rob Littlewood