Saturday, 1 December 2012

It's that time of year

Apart from the Turkey Trot and the Chicken Run, this is a quiet time for most people at the golf club. But it’s a very busy time for Mike Robinson and some of the committee, and it’s a very critical time for our financial future.

It’s the Christmas mailing time: sending out the newsletter and the subscription notices.
 
The newsletter has pictures and is printed using different colours. We therefore suspect it’s one of the few things we produce that most people actually look at, so we try to get interesting articles; and more importantly try to get people to finish them in time for a publishing deadline. That takes time.
The subscription notices are more mechanical: we know what the subs will be after the AGM (although we still have to wait to hear what the various national and county affiliation fees will be). But they signify an important issue: how many people will renew, and how far down the waiting list should we go to fill vacancies? Each year for the past few years we’ve had about 50 people choosing not to renew, which is pretty much in line with the national average percentage, after a period where we lost fewer. There’s all sorts of articles and theories about why golf clubs are losing members (time, cost, social factors, handicap system, too many golf clubs, easier to play social golf through pay and play) and all sorts of efforts made to reinvigorate memberships. We can look with interest to see which efforts work because our waiting list – more or less – gives us flexibility. But one day it won’t be there and we’ll need to decide how to react. This year’s subscription process will indicate how soon that day will be.
Two other points on subscriptions:
- we are in the middle of changing banks to HSBC so we start the new year with them. We’ve decided not to encourage direct transfers into the account this year to avoid confusion; we will next year. We will continue to be unpopular with bank counter staff as we bank £200K’s worth of cheques and cash in the first couple of months.
- we are unusual in asking members to approve subscription levels for the coming year at the AGM. This is good in that members approve them; it’s bad because we have to decide what we recommend early in the year which is before we know the year’s financial position and what our competitors (other clubs) are doing. The draft of the new rules keeps this arrangement but I’d like to discuss it because it can put us on the backfoot in a year, like this year, when other clubs are raising their subs by more and the unexpectedly bad weather in summer hit our results. We may well have kept 2013 subs at the same rates, but we would have made that decision with better knowledge.