Golf Course Business Plan Appendecies - Union College 2009

Business Plan Appendecies

June 2009

COMPANY CONFIDENTIAL

Prepared by:

Kurt Therrien Erich Spikereit Nicole Bisnett

William Chronister

Union Graduate College

Company Confidential 1

Table of Contents

Business Plan Appendices Appendix A – Committees and Responsibilities…...……………………………………..2 Appendix B – Superintendant Responsibilities.....................................…………………..3 Appendix C – Critical Procedures…………………………………………………….......5 Appendix D – POS System Outline……………………………………………………….6 Appendix E – Maintenance Schedule……………………………………………………..8 Appendix F – People Flow………………………………………………………………..9 Appendix G – Income Statement………………………………………………………...10 Appendix H – Revenue Model…………………………………………………………..11 Appendix I – Cash Flow Model………………………………………………………….12 Appendix J – NPV and IRR……………………………………………………………...13 Appendix K – Balance Sheet…………………………………………………………….14 Appendix L – Timeline…………………………………………………………………..15 Detailed Appendices Appendix M – Overview………………………………………………………………...16 Appendix N – Marketing………………………………………………………………...33 Appendix O – Operations………………………………………………………………..62 Appendix P – Finance…………………………………………………………………..112 Additional Research Appendix Q – Pricing Research………………………………………………………...139 Appendix R – Revenue Sources Research……………………………………………...151 Appendix S – Communications Research………………………………………………163 Appendix T – Driving Range Research………………………………………………...183


Appendix A – Committees and Responsibilities

Committee Responsibility

Pro Shop

Have charge of the Professional Golf shop and PGA Professional under contract and arrange for the purchase of any supplies necessary for operation under the approval of the commission

Clubhouse

Have charge of the maintenance and operation of the clubhouse under contract and shall arrange for purchase of any supplies necessary for operation and maintenance Develop house rules subject to approval of the commission

Annual Fee Player Responsible for organizing initiatives to increase the number of Annual Fee Players a the golf course

Greens

Have charge of the golf course, the grounds, equipment pertaining to maintenance and operation of the golf course and grounds, excluding the Pro Shop and Clubhouse Responsible to arrange for purchase of any supplies necessary for operation and maintenance of the golf course as described above

Improvement

Responsible for organizing large projects to improve the beauty and playability of the golf course Formulate plans, including manpower and material cost estimates as well as project impact of current and future playing conditions of the golf course

Carts

Responsible for the golf cart storage shed waiting list Develops policies and procedures governing storage and use of golf carts on the golf course

Long Range Planning

Responsible for developing five and ten year capital improvement plans for the golf course for approval by the Commission in June, including depreciation and replacement, large landscaping projects such as tee or green replacement, building and parking lot improvements and maintenance

Tournament

Responsible for organizing tournament dates and through Secretary, corresponding to those individuals or organizations which desire to hold tournaments at the golf course Establishes rules, regulations, and fees for holding tournaments, which will require closing course or the tees for a period of time Rules established are passed by majority rule

Rules

Responsible for all rules governing Annual Fee Players, fees, course etiquette, and all other policies used to govern the course including cart storage and use, cart waiting list, locker use and waiting list, course winter activities, use of course by school golf teams, violation of rules, and regulation of practice areas, course closing, starting times, rain checks and refunds Must be comprised of all Commission members


Appendix B – Superintendant Responsibilities


Appendix C – Critical Procedures


Appendix D – POS System Outline

Point-of-Sale System

“After an extensive search for a POS system that would allow us to book tee times online, we found that having a Web-based system is the best way to go. Having everything stored offsite means that if our computer crashes, we won’t lose any of our information.” —Steve Hammond, PGA Head Professional, City of Austin

“SPS Golf Management Solutions is the most affordable software system on the market and is jam packed with hundreds of different options and reports. Since the software system is Web-based, I can look at all of the data from my home to see how our business is going. I have used many different POS Systems, and this one is the most user friendly for my staff. The SPS GMS system has given us the availability to capture data from every player that golfs at our facility, enabling us to market to them and increase our business.” —Jeff Gandee, PGA Head Professional, Auburn Hills Golf Club

SPS Golf Management Solutions has employed next generation technology and proven system architecture to bring full Point-of-Sale (POS) capability to the web. Our POS system is fully integrated with our reservation tee sheet for a quick and easy check-in process. The POS system also has built in protection that keeps it running even if Internet access is interrupted.

The SPS Golf Management Solutions Point-of-Sale system incorporates the following features:

• Reservations are automatically carried over from tee sheet.

• Employee tracking on all transactions and cashier security levels are available.

• Inventory items can be added to a sale via keyboard, bar code scanner, or one-touch programmable keypad.

• Multiple tender types including cash, check, credit card, gift card, club account, and gift certificate.

• Integrated Gift Card for single or multi-location use.

• Integrated Gift Certificates track and verify current value at the POS station.

• Integrated, Web-based (optional) Credit Card processing speeds up the check-in process and provides competitive discount rates.

• Rain Check processing is tracked from tee sheet and verified at POS


station.

• Demographic tracking for POS purchases.

• Tracking of Member purchases for targeted marketing ability.

• Post POS transactional data into Micros Fidelio “OPERA”.

• Touch screen key pad capability for quick reference items.


Appendix E – Maintenance Schedule Day Day

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Duties DutiesMow greens(6x week) x x x x x x x x x x x x x x x x x x Mow greens x x x x x x x x x x x x x x x x x xMow tees(3x wk) x x x x x x x x x x x x x x x x x x Mow teesMow fairways(3x wk) Mow fairwaysMow roughs/trim(1x wk) Mow roughs/trim x x x x x x x x x x x x x x x x x xRake traps(4x wk) x x x x x x x x x x x x x x x x x x Rake traps x x x x x x x x x x x x x x x x x xChange cups(every other day) Change cupsChange tee boxes(every other day) x x x x x x x x x x x x x x x x x x Change tee boxes x x x x x x x x x x x x x x x x x xAreation AreationChemical applications Chemical applicationsWatering x x x x x x x x x x x x x x x x x x Watering x x x x x x x x x x x x x x x x x xDay

Day1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Duties 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Mow greens x x x x x x x x x x x x x x x x x x DutiesMow tees Mow greensMow fairways x x x x x x x x x x x x x x x x x x Mow tees x x x x x x x x x x x x x x x x x xMow roughs/trim Mow fairwaysRake traps Mow roughs/trimChange cups x x x x x x x x x x x x x x x x x x Rake trapsChange tee boxes Change cups x x x x x x x x x x x x x x x x x xAreation Change tee boxesChemical applications AreationWatering x x x x x x x x x x x x x x x x x x Chemical applications

Watering x x x x x x x x x x x x x x x x x xDay

Day1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Duties 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Mow greens x x x x x x x x x x x x x x x x x x DutiesMow tees Mow greens x x x x x x x x x x x x x x x x x xMow fairways Mow teesMow roughs/trim Mow fairways x x x x x x x x x x x x x x x x x xRake traps x x x x x x x x x x x x x x x x x x Mow roughs/trimChange cups Rake traps x x x x x x x x x x x x x x x x x xChange tee boxes x x x x x x x x x x x x x x x x x x Change cupsAreation Change tee boxes x x x x x x x x x x x x x x x x x xChemical applications AreationWatering x x x x x x x x x x x x x x x x x x Chemical applications


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18DutiesMow greensMow tees x x x x x x x x x x x x x x x x x xMow fairways x x x x x x x x x x x x x x x x x xMow roughs/trimRake trapsChange cups x x x x x x x x x x x x x x x x x xChange tee boxesAreationChemical applicationsWatering x x x x x x x x x x x x x x x x x x

Fall and Spring

Fall and Spring

Fall and Spring

Fall and SpringAs necessary

4Holes

As necessary

Holes1

As necessary

2Holes

3

As necessary

Holes

5Holes


6Holes


7Holes



Appendix F – People Flow


Appendix G – Income Statement


Appendix H – Revenue Model


Appendix I – Cash Flow Model


Appendix J – NPV and IRR


Appendix K – Balance Sheet


Appendix L – Timeline


Appendix M – Business Overview 1.0 Business Overview

The City of Amsterdam located in Montgomery County owns and operates an 18-

hole public golf course for approximately 9 months of the year, which was designed by

Robert Trent Jones Sr. In the winter months, when golf cannot be played, the course is

often used for cross country skiing, snowshoeing, and sleigh riding by city residents. The

course may be played by members or anyone seeking a course with a design which boasts

long rolling fairways, challenging greens and years of history at an affordable price. The

greens fees, at 25 dollars per day, allow an individual to golf as many holes from sunrise

to sunset as they wish. The ability to play as many holes as one can on a golf course

designed by Robert Trent Jones Sr. at a reasonable fee is what differentiates Arthur

Carter Amsterdam Municipal Golf Course from its competition. Revenues are generated

by daily fee golfers, membership fees, facility rental and lease fees from the concession

contract operating the clubhouse.

As a result of the City ownership, the goals of the course are long term

sustainability and value added to the community. The course has many opportunities to

better meet these goals by increasing revenue and provide better service to the

community through the adjustment of pricing, execution of a strategic marketing plan,

and diversification of services. In addition, the course is currently in need of a number of

capital improvements including the redesign of cart paths and course drainage upgrades.

A timeline for the execution of operational changes and capital improvements will be

determined upon further evaluation.


1.1 The Company

1.1.1 Contact Information

The Arthur Carter Amsterdam Municipal Golf Course is located at 158 Upper

Van Dyke Avenue, Amsterdam, NY 12010 and can be contacted at the following

numbers:

• Pro Shop (518) 842-4265

• Tee Times (518) 842-6480

• Clubhouse (518) 842-9731

• http://amsterdammuni.com

1.1.2 The Business

The Amsterdam Municipal Golf Course, founded in 1938, provides an 18-hole,

par 71; course approximately 6700 yards in length designed by Robert Trent Jones Sr.

Robert Trent Jones Sr. has designed or redesigned over 500 golf courses in 40 U.S. states

and 35 other countries around the world, however, only one in the Capital Region for

over one hundred miles. An individual or group wishing to play Amsterdam Municipal

Golf Course has a number of options; they can purchase a year membership, greens fees

for a single day, join a golf league, or rent the entire course for a day.


Membership Fees/Storage

Standard $625 Green Fees (before 3pm) $25

Family $1,035 Green Fees (after 3pm) $17

Junior $140 Locker Rental (per year) $30

Senior $600 Gas Cart Storage (per year) $335

Senior Family $985 Elect. Cart Storage (per year) $365

Senior Limited $560 1-day course rental $1,500

Chart 1: Fees

In addition to golf, the facility offers a pro shop which includes golf cart rentals,

lessons, and merchandise, as well as a clubhouse, which offers food and banquet services,

none of which directly generate revenue for the golf course and could be explored further

as will be defined later.

1.1.3 Organizational Overview

The course is owned by the City of Amsterdam but is managed by the Golf

Commission, a group of six volunteers who manage, maintain, and operate the golf

courses and appurtenances. A member is appointed annually by the mayor for a five year

term. The Golf Commission is governed by Chapter 28 of the General Code, City of

Amsterdam. Our contact, Dave Putnam, sits on the Golf Commission and is our main

contact for this project.

In addition to the Golf Commission, the course employs a golf course

superintendent, six full time grounds keepers, and two temporary summer grounds

keepers. The superintendent and grounds keepers are all employed by the City of

Amsterdam and are responsible for maintaining the course. Their benefits and salary are


supported by the course during operational months (34 weeks a year) and are picked up

by the city during the off season.

The City contracts the remaining operations for the course (1) for the operation of

the Pro Shop and the golf course which includes the employment of the assistant pro,

course ranger and starter and (2) the operation of the clubhouse which includes dining

services and maintenance of the clubhouse. It is unclear if contracting the Pro Shop, golf

course and club house operations is the most efficient and profitable way to operate. As

part of planned benchmarking of other local municipal golf courses the organizational

structure and contract terms will be evaluated to determine the method of operation in

this area.

As a result of being owned by the City of Amsterdam, the course operates on the

city’s budget cycle, which runs from July through June. The Golf Commission is given

an annual budget to operate and maintain the course. The Controller of the City of

Amsterdam tracks all expenditures and revenues generated from the operation of the

course and monies are deposited/withdrawn from the city’s general fund. The Golf

Commission has little visibility into actual expenditures and revenues for the golf course

as will be explored further under the financial section. Furthermore, the use of the cities

general fund is inconsistent with the Golf Commissions charter, which states the

Controller of the City of Amsterdam shall maintain a separate account of revenues

received from the operation of the course.


1.1.4 Current Status

Chart 1 below shows the Amsterdam Municipal Golf Course budget and projected

revenues for 2008-2009 and 2009-2010.

Chart 1: Annual Budget/Revenue

2008-2009 2009-2010

Personnel Services $ 238,816 $ 235,610

Equipment $ - $ 40,000

Contractual Expenses $ 146,404 $ 156,514

Principal on Indeptedness $ 67,921 $ 67,921

Interest on Indebtedness $ 19,674 $ 19,674

Fringe Benefits $ 115,112 $ 115,112

Total Budget $ 587,927 $ 634,831

Total Revenue Projected $ 553,500 $ 617,450

Chart 2 below shows our estimate of the breakdown of the courses revenue in 2008 based on initial discussions with the Golf Commission. Further research will need to be conducted in this area to determine

the actual breakdown of revenue.

revenues

70%

5%

20%

5%

Membership fees

league fees

Daily fees

lease fees

Chart 2: Estimated Revenue Breakdown

Amsterdam Municipal Golf Course has many areas which need to be evaluated for

change to increase revenue, including:


• Increase in league fee

• Membership/Resident/Non-Resident pricing

• Operation of the Pro Shop

• Operation of the Clubhouse


1.2 The Product

1.2.1 Product Overview

From early spring to late fall the Amsterdam Municipal Golf Course provides a

quality golfing experience at an affordable price as shown previously. An individual can

play the golf course through a variety of different avenues, including:

• Purchase of a year long membership

• Purchase of green fees at a daily rate

• Joining a league as an individual

The cost for each of these options varies as discussed previously in this report.

The course also offers options for groups of individuals, who wish to play the course,

including:

• Family memberships

• Creating a league as a group

• Renting the entire course for a day

In addition to the revenues generated from the golf options above, the course

generates revenues through contracting out concessions, for which the course is paid a fee

for lease of the space. In the winter months, when not operating the facility as a golf

course the city allows the community to continue to use the grounds for other recreational

activities free of charge such as, snow shoeing, cross country skiing, and sleigh riding.

1.2.2 Current Market


The Amsterdam Municipal Golf Course was unable to provide detailed data on

their current customer base. They did however provide their opinion of their current

customer base and recent trends.

The course currently has approximately 400 members consisting mostly of city

residents. The current membership is down from upwards of 700 members in the 1990’s.

Contributing to this is an estimated 20-25% decrease in youth membership. As a result of

declining membership the Golf Committee has attempted to remove any barriers of entry

to individuals who do not live in the City of Amsterdam by standardizing their fees. This

is in line with an increasing trend for municipal golf courses countrywide. As such the

dramatic increase in daily fee courses over the past 15 to 20 years, versus private

membership golf clubs, has made it more difficult for the municipal course to make a

profit with this market saturation. In addition, the cost of producing a round of golf at

municipal facilities is typically higher than a comparable or better daily fee course. This

is due to the high cost of union labor rates and the cumbersome bureaucracy of a

municipal government processes with respect to hiring, firing and procurement. While

this area contains opportunity for improvement it is outside of the scope of this project

due to the Golf Commission’s lack of authority in this area.

1.2.3 Product Differentiation

The Amsterdam Municipal Golf Course is able to differentiate themselves in a

few different ways, including:

• Course Design: The Robert Trent Jones, Sr. design is a high quality course

design, which has been largely unchanged since it was constructed in 1938. It is


• Affordability: The course offers pricing for league membership and course

rental, which are among the lowest in the area, making this course an exceptional

value. Promotion of this fact and/or increase rates will be further explored.

• Standardized Pricing: Unlike other municipal courses in the area, Amsterdam

Municipal does not increase the price for non-resident. This provides non-

residents greater access to the course and this fact should also be promoted to

increase non-resident golfer revenues. However, research may prove a higher fee

charged for non-resident should be explored.


1.3 The Business Opportunity, The Market

1.3.1 Potential Customers

Amsterdam Municipal Golf Course has room to develop their market in a number

of different areas.

• City Residents: As discussed previously the membership at the course has

decreased significantly over the past ten years. Population in Montgomery County

is also down approximately 2% from 2000 to 2007 to 49,000 according to data

estimations from the 2000 census. It is critical for success that the Amsterdam

Municipal Golf course look to promote and market to the residents to improve the

perception and increase the accessibility of the daily fee golfer, which currently is

approximated at about 20% of the golfers at the course.

• Local Youth: The course does provide some opportunity for local youths

including providing the home course for local high school teams and lessons for

day campers during the summer; however, there is opportunity for the course to

further develop youth and recreational partnerships within the community to

develop a younger customer base for years to come. Research has shown that

people introduced to golf at a young age play more rounds, spend more time and

money, are more likely to stick with it, are more likely to become avid golfers and

support the course where they learned. According to the 2002 Golf 20/20 study,

there are more than 4 million junior golfers in the US, a portion of which lie in

Montgomery county. The study also found that adults 19-34 who were

introduced to golf through a structured junior golf program are playing 50% more

rounds and spend 70% more on golf than those adults not exposed to golf through


a junior program. In addition, 6 out of 10 children in a structured junior golf

program will become avid adult golfers—in other words, life-long customers.

Development of a “First Tee” Program to increase younger customers will be

evaluated.

• Non-City Residents: Given the affordability of the course and their relatively

close proximity to the New York State Thruway the course has the opportunity to

grow their customer base outside of Montgomery County.

• Non-Golfers: The course has the opportunity to partner with local businesses to

capitalize on the winter activities, which take place on the course.

• Golf Tournaments: Amsterdam Municipal has the opportunity to hold Golf

Tournaments similar to how the Albany Municipal holds a tournament for the

Duramed Futures Tour.

1.3.2 Market Trends and Outlook

Golf industry trends show a decline in membership in private and semi-private

golf clubs. This is consistent with what has occurred at Amsterdam Municipal. This has

resulted in many golf courses diversifying their services in order to provide a greater

benefit to their customers. The golf industry has also seen a change in the trajectory from

a consistent growth in the number of golf courses nationwide to a decrease in the number

of golf course annually. However, the industry is not attributing this to a decrease in the

number of golfers but to a change in the attitude of golfers. The change in attitude has

resulted in many private and semi-private golf courses diversifying their services to

provide a more family friendly environment. Consistent with industry trends,


Amsterdam Municipal Golf Course is considering diversifying their services to provide

more organized activities during the winter.

1.3.3 The Competition

Amsterdam Municipal faces competition from a number of different sources: (1)

golf courses within Montgomery County for residents of the county, and (2) Capital

Region golf courses for golfers outside of the county. Within Montgomery County there

are three other courses:

• Canajoharie Country Club – Semi-Private

• Antlers Country Club – Private

• Rolling Hills Country Club - Private

Their closest competition outside of Montgomery County is comprised of other

municipal courses such as:

• Town of Colonie Golf Course

• Capital Hills – City of Albany

• Western Turnpike – City Guilderland

• Schenectady Municipal

A cursory review of the membership and greens fee pricing of the above

municipal golf courses shows Amsterdam Municipal to be fairly consistent with other

municipal courses. However, a more in depth analysis of the competition will be

researched to better understand service comparisons and value added at the Amsterdam

Municipal Golf Course.


1.4 Business Model

1.4.1 Revenue Sources

The course generates revenue in a handful of different ways through the golf

course and clubhouse. Little data has been able to be provided to date, however

discussions with the Golf Commission indicate the revenue is broken down as follows:

• Memberships: Largest portion of the revenues

• Golf Cart Storage: The Golf Pro receives all revenues from the renting of golf

carts to individuals. The course receives revenues generated from the storage of

golf carts on-site by members.

• Individual Greens Fees: $25 for the entire day, no hole limit.

• League Memberships: $10 per individual per year for as many leagues as they

desire.

• 1-Day Course Rentals: A flat rate of $1,500 is charged for groups to rent the

course for the day. Golf cart rental fees and dinning services are negotiated with

the Pro and the Clubhouse manager separately.

• Concession Lease: The course receives a lease fee for rental of the space for the

concessions, and the lessee keeps all proceeds from the sale of goods.

The above will be evaluated for change to increase long term course profitability.

1.4.2 Cost Drivers

The categories of Amsterdam Municipal’s major cost drivers are as expected.

Additional research will need to be done to conclude if the magnitudes of the expenses

are consistent with like golf courses. The cost drivers include:


• Personnel services including benefits – 60%

• Debt from previous capital expenditures – 15%

• Operational expenses – 25%..

The Golf Commission has little control over expenses generated from personnel services

and debt form capital expenditures. Therefore, the review performed for the Amsterdam

Municipal Golf Course cost drivers for improvement will focus on the operational

expenses.


1.5 Financial Goals

Since its inception in the late 1930’s, Amsterdam Municipal Golf Course has had

limited oversight of the financial transactions of the organization. Since it is a

municipality-based organization, the city allocates the golf course an annual budget and

tracks all of its expenditures. The fiscal year (FY) for the city runs from July 1 – June 30.

In FY 2008, the golf course earned $6,000 in profit. However, the profit generated was

then allocated to the city’s general fund so the golf course was not able to reinvest their

earnings back into their business.

Financially, one of the golf course’s greatest challenges is that they are given a

budget by the city, the city tracks their expenditures, and then any profits earned are not

necessarily used to make improvements to the golf course. The City of Amsterdam

currently provides the golf course with a high-level annual summary of their total budget,

expenditures, income and profits, so they have very limited knowledge of the financial

health of their organization. As such, one of the most crucial financial goals for

Amsterdam Municipal Golf Course is to develop a system of being able to track their

finances internally. This will allow them to have a much better idea of what their greatest

expenses are, identify where their greatest profit margins lie, and develop realistic

budgets. By utilizing this financial data, they can build the leverage required to request

the additional funding necessary to make two much-needed capital investments, a new

drainage system and cart path estimated at approximately $500,000.

Since there was limited financial data available, it is difficult to articulate revenue targets.

According to the Golf Commission, the last several years have yielded nearly no profit,

with operating costs essentially equaling any revenue generated by the golf course.


While the Golf Commission does not consider the golf course a profit-driven

organization, it is vital that they do not fall behind in maintaining a high-quality

recreational organization because it adds significant overall value to the city of

Amsterdam. Although increasing prices do not fare well with its patrons, it is likely to be

a requirement if the golf course wants to remain competitive. By increasing prices, the

Golf Commission (with the agreement of the city’s Common Council) will be able to

invest in capital improvements, thus adding overall value to the course.


1.6 Strategic Challenges

The Amsterdam Municipal Golf Course faces many challenges going forward,

including but not limited to:

• Align (increase) pricing to be more consistent with industry competitors

• Develop and execute a long range plan to maintain and upgrade the course

• Improve public perception of the course

• Diversify Course services to better meet the needs of the community

• Change the organizational structure needed to facilitate sustained improvement

• Identify a more visible accounting system for the Golf Commission to enable a

better budgetary and fiscal planning strategy

To overcome these challenges, the Course must successfully manage public perception

of the Course by communicating their intended actions along with the associated risks

and mitigating plans and intended benefits to both the Course and the public. This can be

done through a marketing/advertising campaign with possible use of surveys given to all

revenue generating demographics at the Course. The Course would further understand

the customer needs and then be able to focus and prioritize items based on feedback to

further generate customer loyalty. Specifics of this plan will be addressed in future

deliverables.


Appendix N – Marketing 2.0.0 Organizational Model

The Amsterdam Municipal Golf Course has the unique opportunity to

differentiate itself from other area municipal courses. A large portion of its customers are

members who, as such, play as often as they would like for no cost except their annual

membership. As a municipal course, it has limited ability to obtain customers from far

away areas. 73% of total members reside in Amsterdam and non-residents travel a

weighted-average of 11 miles to the course.1

However, it does have an opportunity to adjust its revenue model to maximize the

profitability of the Course, as the pricing structure of memberships limits profitability.

Pricing adjustments can help the Course adjust its player composition to consist of more

daily fee players and increase the revenue per round realized. This will help to increase

revenues overall and allow for capital expenditures improvements and more efficient

planning for the Course.

2.0.1 Value-Add

Amsterdam Municipal golf course is the largest asset of Amsterdam and critical

to the success of the golf course is the condition of the golf course itself. Course quality

and design, maintenance, and speed of play are all areas of value for the golf course.

According to a survey completed by more than 1,200 Capital District golfers for Albany,

1 Amsterdam Municipal Golf Course. Membership Records. 2008.


NY Times-Union, quality of conditions ranked highest at 49% saying this was the most

important aspect when choosing to golf at a municipal course.2

The single most important feature of a golf course, and one that differentiates a

course from its competitors, is the maintenance and upkeep. Customers come to the golf

course to enjoy a golf experience that is challenging and efficient in speed of play.

Currently, the Course’s players largely consist of members, which increase the speed of

play due to familiarity and experience on the Course. Proposed pricing changes, as

outlined in Section 2.3.3, could be a threat to maintaining speed of play, if by bringing in

more daily fee players, speed of play is compromised. In addition, customers expect the

course conditions to meet their quality expectations. In order to ensure proper

maintenance is upheld, understanding the capacity and course utilization is the first step.

The golf course is open for reservation of tee times from May 1 through October

1st. Members and daily fee golfers can obtain tee times during these periods. During off

peak times prior to May 1 and after October 1, reservations are not taken, but customers

can walk on to course during hours of operation, 7am until sunset. According to a study

done on the Course’s tee time structure and operational hours, Amsterdam Municipal

Golf Course has an approximate reasonable capacity for 48,000 rounds of golf per year

It should be noted that members often play rounds prior to course opening and these tee

slots were not considered. In addition, according to the New York Weather Almanac,

days with precipitation in the Capital Region during peak golf season were approximately

54 of the total 153 days, or 35%.3 It was therefore assumed, and factored in, that 15% of

the time golf could not be played due to weather, as the course may have been

2 Albany Times-Union. Pete Dougerty. 2007. 3 Albany, NY Climate. http://www.myforecast.com/bin/climate.m?city=23803&metric=false


operational during much of or part of the 35% of days even though inclement weather

may have adversely affected play on the course.

In order to maximize the realistic use of the course, a rigorous maintenance

program must be followed. Currently the golf course employs six maintenance

personnel, who perform the necessary mowing of greens, fairways, and rough.

Contracted out are major repairs to tee boxes, greens, and the drainage system.

According to the long range planning report completed by the course superintendant,4 it

was recommended that needed repairs be planned for and addressed. These items include

expansion of tee boxes, repair of drainage on nine holes, repair of cart paths, and

replacement of a mower. Greens were recommended not to change due to the excessive

cost to replace and high maintenance cost of faster greens. However, as additional

revenue becomes available, the capital expenditures for the greens may be revisited.

Appendix 2 shows itemized repairs recommended by the superintendent and suggested

timeframes for budgetary purposes.

Funds appropriated for these purposes can and should be planned for through a

capital budget for the golf course. Additional revenue sources will help offset these costs

and will be further explored.

2.0.2 Sources of Revenue

The main sources for revenue of the Amsterdam Municipal Golf Course are

memberships, greens fees, cart rentals, and locker rentals. A sample year-to-date total for

the quarter ending June 30, 2008 can be seen in Appendix 3. A breakdown by percentage

of total revenue can be seen in the chart below. 4 James Derrick. 2008.


Sources of Revenue

Memberships, 53.88%

Greens Fees, 32.18%

Cart Rentals, 13.29%

Locker Rentals, 0.65%

Clearly, memberships currently drive total revenue. However, the number of

rounds of golf played per member was quite high, although difficult to measure due to the

course’s operational structure and lack of reporting accuracy, it demonstrates lost revenue

and lower profit per round. Ultimately, generating higher profit per round should be the

goal for the course to help fund its capital expenditures and improve the course for the

long term. This will be discussed in detail in Section 2.3.3 on Pricing.

2.0.3 Cost Drivers

In prior years, the financial goal of the Course was to breakeven each year. The

chart below demonstrates the high cost associated with operating this municipal course.

As shown, there is a 17K gap in 2009-2010 for projected profit which is unsustainable in

the long run. Therefore, higher revenues must be sought, which the Course cannot

achieve in its current price structure.

2008-2009 2009-2010

Personnel Services $ 238,816 $ 235,610


Other cost drivers include personnel services including benefits, debt from

previous capital expenditures, and operational expenses. Due to city restrictions on labor

rates and contracting, the Course little control over these costs. Therefore, the Course

must find new ways of generating revenue to cover these expenses. This will be

discussed in Section 2.3.3 on Pricing.

Equipment $ - $ 40,000

Contractual Expenses $ 146,404 $ 156,514

Principal on Indeptedness $ 67,921 $ 67,921

Interest on Indebtedness $ 19,674 $ 19,674

Fringe Benefits $ 115,112 $ 115,112

Total Budget $ 587,927 $ 634,831

Total Revenue Projected $ 553,500 $ 617,450

2.0.4 Current Market Served

Currently, 53% of total revenues are derived from memberships and 32% are

derived from daily fee players. The Course currently caters mostly to the needs of its

members, not the daily fee players. For example, members having the ability to play

unlimited holes at no cost (after membership dues) leave few prime tee times for the

greens fee payer. This deters the greens fee player from playing Amsterdam Municipal

and contributes to lower profit per round.

As non-resident members traveled a weighted-average of 11 miles to play the

course, its competition is limited. As will be discussed in further detail in Section 2.2.0,

there are only 14 courses that reside within either Fulton or Montgomery Counties or are

within 15 miles of Amsterdam. 73% of members live in Amsterdam.


2.1.0 Market Analysis

2.1.1 Target Market

The Course can reasonably expect to draw consistently from a 15 mile radius. In

this radius, the largest municipalities are Amsterdam and Johnstown. These two, along

with other smaller municipalities, will be considered the geographic target market for the

Course. The target market of the Course consists of core golfers. Core golfers are those

age 18+ that golf more than 8 rounds per year. There are 15 million core golfers in the

US and 28.7 million golfers total, according to the National Golf Foundation.5 This

translates to 56% of total golfers being considered core golfers. It should be noted that

Amsterdam Municipal’s current membership largely consists of core golfers.

2.1.2 Opportunity

According to Appendix 4, approximately 9.8% of the US population is considered

golfers. Also, 4.9% of the US population is considered core golfers. Using census data

for this area, the total population considered to be in the geographic target is 102,915.6

Therefore, assuming the local geographic target is representative of the US percentage of

core golfers, the total market opportunity is 5,043 core golfers in the area.

The Course currently has 523 total members. This alone would represent 10% of

the target market. The Course also played host to 5,358 rounds of daily fee golf year-to-

date June 30, 2008. Based on limited details available from Course data, it is difficult to

quantify how many daily fee golfers are considered core golfers. However, given the

5 National Golf Foundation. 2007. http://www.worldgolf.com/newswire/browse/9468-NGF-reports-number-of-core-golfer-in-US-higher-than-expected. 6 US Census Data. 2000.


definition of core golfer and the total market opportunity defined above, 5,043 core

golfers, we can say that the maximum number of core golfers paying daily fees is 670.

This calculates to roughly 12% of the current served market for Amsterdam Municipal, or

a range of 10%- 22% of the total market opportunity. Therefore, the remaining 78-90%

of the target market, or 3,900-4,500 people, is defined as the current opportunity. The

chart below shows a projection of revenues at current pricing, depending on the ability to

reach the target market. An effective promotion strategy can be employed, which will be

discussed in Section 2.3.4, that will focus on attracting 500 additional people playing an

additional 4,000 rounds, which is 10% of current capacity.

# of people Rounds % of target

Projected revenue (current pricing structure)

% of 48,000 (course capacity)

4,500 36,000 100% $ 900,000 94% 4,000 32,000 89% $ 800,000 83% 3,500 28,000 78% $ 700,000 73% 3,000 24,000 67% $ 600,000 63% 2,500 20,000 56% $ 500,000 52% 2,000 16,000 44% $ 400,000 42% 1,500 12,000 33% $ 300,000 31% 1,000 8,000 22% $ 200,000 21% 500 4,000 11% $ 100,000 10% 250 2,000 6% $ 50,000 5% 100 800 2% $ 20,000 2%

Chart: Projected revenues

Given the course’s current operating capacity of 43-68% of total capacity, and usable

course capacity of 75%, there is the opportunity for the Course to reasonably expand by

7% to 32% of capacity, or 3,360 to 15,360 rounds per year. Assuming these rounds are

played by non-members, and based on $25 per round, this translates to possible increased

revenue of $84,000 to $384,025 per year.


Further, a high proportion of members are men, as indicated by the chart below,

obtained from current membership data.

Full Members

Males88%

Females9%

Unknown3%

This proportion should decrease in the coming years as, according to the National Golf

Course Owners Association, 67% of new golfers are women. Therefore, the potential for

growth in this segment is tremendous. As 9.8% was the assumed proportion of the

current population, that proportion is increasing each year as more and more women

pursue golf as a recreational sport.


2.2.0 Competitive Analysis

Amsterdam Municipal Golf Course has a number of competitors. The chart

below shows the seven golf courses either within Fulton-Montgomery Counties or within

15 miles driving distance from Amsterdam. We benchmarked courses that met these

criteria due to the Course’s potential to serve Amsterdam Municipal’s target market.

Course Weekday Weekend Length Notes Canajoharie 25 30 5,837 Semi-private Pioneer Hills 20 25 5,700 Semi-private ($450-$800)

Fox Run 33 36 6,400 With cart, Semi-Private ($575-$695)

Nick Stoner 33 33 5,400 with cart, Par 70 Rolling Hills at Antlers 35 45 6,314 Semi-private ($2,000-$3,200) Briar Creek 23 26 5,667 Hales Mills 27 27 5,995 No Golf Pro Average 22 25 Average (not including 9 hole courses) 24 27

Chart: Local Competition *Carts typically range in price from $12-$16 per person for 18 holes

There are a number of other 9-Hole courses in the target region. However, these

were not considered competitors to Amsterdam Municipal as they cater to a different

target market, focusing more on beginners than core golfers. The above courses are of

comparable quality and target the same market, with the exception of Rolling Hills at

Antlers. They serve a market of customers seeking a private club.

Pioneer Hills, Nick Stoner, and Briar Creek are of comparable quality, but the

length of these courses detracts from the challenge and quality of play. Their clubhouses

are also similar to Amsterdam Municipal in that they are suitable gathering places, but

are unlikely suitable venues for more formal events such as a wedding. Fox Run and

Briar Creek are generally regarded as not having quality matching Amsterdam Municipal.


Overall, the closest competition in terms of offerings consists of Canajoharie and Pioneer

Hills.

2.2 1 Strengths

Currently, the strength of the course is its pricing strategy. Their membership

plans offer a tremendous value to avid golfers, non-resident fees are lower, and daily fees

do not limit golfers to a number of rounds. However, attractive pricing does not ensure

customer loyalty. Making an adjustment to pricing strategy, as outlined in Section 2.3.3,

will allow the Course to become more profitable. This profitability will in turn change

the Course’s strength to be the quality of the Course. Superior maintenance of the Course

will help to develop customer loyalty and ensure the long-term success of the Course.

2.2 2 Weaknesses

League pricing, as outlined in Section 2.3.3, is a drain on profitability per round.

While more leagues may be attracted to the Course because of the pricing, as this volume

increases, there is further pressure on profitability and generates lower revenues per

round played. Other courses, while their pricing may not be as attractive, realize a higher

per round revenues as compared to Amsterdam Municipal Golf Course. This will be

further explored in the operations deliverable

As a municipal course, Amsterdam Municipal faces higher operating costs as

compared to their competition. Labor rates for city employees or contractors are higher

for Amsterdam Municipal, as it must pay a prevailing wage. These higher operating

costs make it more difficult for the Course to plan for capital improvements, as shown.


2.2.3 Opportunities

This pricing strategy also represents a tremendous opportunity. If the Course

utilizes the pricing strategy proposed in Section 2.3.3, it will become more profitable.

This profitability will increase the viability of projects related to capital improvements.

The condition of the course, which has been noted to be a major driver of course

preference, would improve greatly. Communicating these improvements to non-member

golfers in the target region, as outlined in Section 2.3.4, would further increase revenue

and contribute to the long-term success of the Course.

2.2.4 Threats

The current state of the economy has put a pinch on consumer spending.

According to the National Golf Foundation, golfer confidence, as measured by attitudes

and perceptions about the effects of the economic recession, have declined. “When it

comes to general finances, 2/3 of the nation’s 15.7 million adult core golfers are feeling

the economic strain and are reigning in their spending. As such, approximately 30-40%

are playing fewer rounds of golf.”7 Therefore, discretionary spending, which includes

spending on recreational activities such as golf, has decreased as well. This could

potentially threaten the future growth of the course.

With discretionary spending on golf slowing, there is an opportunity to gain

additional golfers who no longer golf at country clubs or other private courses because of

the high membership fees associated with each. However, such venues typically offer

social benefits in addition to the recreational benefit of golf. Therefore, it is unreasonable 7 National Golf Foundation. “Golfer Confidence Declining.” www.ngf.org.


that a large number of former country club and private course would leave their current

venues for Amsterdam Municipal. It is more likely that Amsterdam Municipal would

lose golfers due to the recession than gain members from other venues.

Another threat to Amsterdam Municipal is the political nature of the Course

operations. Political officials appoint the Golf Commission and if those political officials

are voted out of office, it could lead to turnover in the management of Amsterdam

Municipal. Management turnover would lead to a discontinuity in operations that could

have a negative effect on the Course’s customer base.


2.3.0 Marketing Strategy

The current marketing strategy caters mainly to the interests of members. This is

due to the political nature of managing the Municipal Golf Course. Managing the Course

as a business and planning for the future by investing in potential customers in addition to

desires of existing customers, is key to enhancing the future value of the Course.

2.3.1 Product

The Course offers memberships, daily greens fees, and event pricing. In addition,

several leagues play weekly. The Course also has special pricing available to senior

citizens, juniors, and families. Further strengthening of its core competency is required

before expanding into other activities. Expansion into winter activities will be reviewed

in additional research.

2.3.2 Place

The Course is located in Amsterdam, NY. Demographic information regarding

the geographic target was discussed in Section 2.1.

2.3.3 Price

Amsterdam Municipal’s current pricing, shown in the table below, is set such that

the revenue generated from a round of golf on average will be between $10.03 and

$13.05 in 2009 depending on the average number of rounds per member used. This

could range between 40-52 rounds per member, but is not tracked by the Course. In

2008, Amsterdam Municipal generated $458,733 in total revenue from green fees and


membership fees. Given the total number of rounds played, between 27,500-34,000

rounds, this calculates to be 38-50% of the standard greens fee. According to the

National Golf Foundation, a golf course should strive to generate revenue per round equal

to 70-75% of the standard greens fee.

Pricing for Amsterdam Municipal is shown in Table 1.

League Rates Greens Fee* Outing Member Non-Member Standard Membership**

Amsterdam 25 1500 0 25 625 Table #1: Current Pricing *Includes both Weekdays and Weekends, all greens fees are for 18 holes **Members play between 40-52 rounds per year on average As mentioned, pricing should be adjusted to attract golfers from the target market

and to generate more revenue per round to support capital improvements. In addition to

the local courses reviewed in Section 2.2.0 on Competition, local municipal courses were

also reviewed to help establish pricing benchmarks. Table #2 below shows the green fees

for local municipal courses.

Weekday Weekend

Course Resident Non-Resident Resident Non-Resident Capital Hills 17 28 17 28 Schenectady 18 24 20 26 Western Turnpike 22 29 22 32 Town of Colonie 21 26 22 28 Amsterdam 25 25 25 25

Average (Not including Amsterdam) 20 27 20 29 Table #2: Municipal Green Fee Prices Amsterdam currently charges a non-member $25 for a day pass at the course,

which allows the golfer to play as many holes as they desire in a given day. In fiscal year

2008, 7,400 rounds were played by non-members that paid a green fee to play

Amsterdam Municipal. This represents between 22-26% of the total estimated rounds

played at the course. Of the 7,400 rounds by non-members, 1,140 were played by non-


residents. It is reasonable to assume that a significant portion of non-member rounds

played by non-residents were from the target market of core golfers in Amsterdam.

Changing the Amsterdam Municipal Golf Course pricing as shown below in

Table #3 is recommended. The recommended pricing changes will make the structure of

Amsterdam’s pricing more consistent with its competition, including both local

municipal and public courses. The changes will also result in an increase in revenue

generated by daily green fees of 7%, from $118,804 to $126,546, based on the same

number of rounds played.

Weekday Weekend Resident Non-resident Resident Non-resident

Amsterdam (Recommended) 24 28 26 31 Average (Municipal) 20 27 21 29 Average (Public) 24 24 28 28 Table #3: Recommended Green Fee Prices For group outings, shown in Table #4, Amsterdam Municipal charges a flat rate in

place of a per person rate, which is unlike other Municipal Courses. In 2008, Amsterdam

generated $10,100 in revenue from outings and expect to generate $12,000 in 2009.

Course Outings Capital Hills 48 w/cart Schenectady 41 w/cart and gift certificate Western Turnpike 47 w/cart Town of Colonie 41 w/cart Amsterdam 1500

Average (Not including Amsterdam) 44 Tablet #4: Municipal Outing and Membership Prices

We recommend changing outing pricing to a per person price of $31 and $36 plus

cart for residents and non-residents respectively. This will begin to start generating more

revenue per outing starting at 49 participants.


The Amsterdam Municipal Golf Course currently charges $10 per league member

to reserve the league tee-times for the season. Green Fees for playing in a league are

covered under the membership fee and non-members pay the twilight price of $17.

Amsterdam currently has 8 leagues with a total of 252 members of which the majority are

Amsterdam Municipal members.

League Rates Course Resident Non Resident

Capital Hills 13 18 Schenectady 17 17 Western Turnpike 16 16 Town of Colonie 15 20 Amsterdam 0 25 Average (Not including Amsterdam) 15 18

Table #5 Municipal League Rates It is recommended to require Amsterdam Municipal members to pay Green Fees

for participating in a league. The Green Fee should be set at $15 per round; this is

consistent with leagues at other local municipal courses. The change will also result in an

increase in total revenue of 14%, from $458,733 to $521,983 based on the same number

league members.

Table 6 below shows membership rates for competing courses.

Course Standard Membership Capital Hills 300 +10 per Round Western Turnpike 885 Canajoharie 750 Pioneer Hills 1050 Amsterdam 625

Table #6: Local Semi-private Membership prices

Amsterdam is currently priced significantly below that of other semi-private

courses in the area. It is recommended changing the membership pricing structure to a

structure similar to that of Capital Hills in Albany. Pricing should be as follows in Table

#7:


Type Membership Green FeeStandard 350 15 Senior 336 13 Senior limited 315 13 Family 595 15 Senior Family 560 13 Junior 87.5 7

Table #7:Recommended membership pricing

This pricing structure will more evenly distribute the cost of operating and

maintaining the course to the members who play the course more frequently.

Additionally, the changes will result in an increase in revenue of 19% to 32%, from

458,733 to $534,666-$591,811 depending on the number of rounds per member

estimated, holding total membership constant.

The above recommendations are estimated to result in a total increase in revenue

of 35-48% from $458,733 to a range of $606,922 to $664,067. Additionally, revenue can

be further increased through increasing Amsterdam Municipal’s share of their target

market. Revenues of $100,000 or more can be generated based on total course capacity

of ~48,000 rounds per year, current usage of 43-68%, and the size of the target market as

discussed in Section 2.1.2. Further detail will be presented in a price sensitivity analysis,

to be discussed in subsequent components of the business plan.

2.3.4 Promotion

It is reasonable to assume that the majority of Amsterdam Municipal’s target

market is aware of the presence of golf course due to the relatively small geographic area

which they live in and the amount of golf they play. Therefore, it is recommended that

Amsterdam Municipal’s promotional activities be designed to bring people to the course

that do not play Amsterdam Municipal already in order to expose them to the quality of


the course. This can be done while generating revenue from these golfers through

promoting and holding Outings and Leagues.

Many social clubs or businesses hold Outings or run leagues as a social activity

for their members, customers, or employees. A representative list of companies within

Amsterdam has been included in Appendix 5. Amsterdam Municipal currently has 8

leagues with a total membership of 252 players of which, four are sponsored by local

businesses. Additionally, Amsterdam Municipal currently has 8 outings planned for the

2009 season. However, the course has sufficient capacity to support more leagues and

outings.

Amsterdam Municipal can support between 520 and 720 league members per year

depending on league tee time intervals of 10 minutes or 7 minutes, respectively.

Amsterdam is currently utilizing approximately 30-50% of this capacity. Using the

pricing strategy recommended above, an individual league member will generate $240 in

revenue a year from playing in a league. Therefore, Amsterdam has the potential to

generate additional revenue by increasing league membership from $64,320 - $112,320.

It is more difficult to quantify the capacity of outings a course can support per

year. A shotgun start outing will essentially shutdown the course for the period of time

required to clear the course of golfers plus the time it will require for the outing to play

the course. As a result to many Shotgun start outings will result in the loss of members

due to the lack of ability to play the course during these outings. Therefore, the number

of Shotgun start outings should be limited. An Outing depending on the size and

composition, number of residents and non-residents, can generate $1,500-$5,100. The

cost to run a Shotgun start outing not including promotions is on the order of $2,000.


This is based on the potential loss in revenue generated from members and non-members

who would typically be playing the course instead of the outing participants. This is a

rough estimate of cost and further analysis will conducted as part of the price sensitivity

analysis. This will be provided as part of future components of the business plan to

establish the number of participants required for a Shotgun start outing to be beneficial to

the Course. However, in addition to the increased revenue per round an Outing provides,

it also gives the Course the opportunity to display the desirable qualities of the course to

golfers who do not typically play the course.

Amsterdam should work with local businesses and social clubs to generate more

leagues and outings at the course. This can be done by working through their current

membership to help organize leagues and outings within their companies and clubs. In

addition, the outings should be advertised at the course via postings and fliers at the

cashier and on the front page of the Web Site. Amsterdam could also offer incentives

including the following for Leagues:

• Wave the League Tee Time reservation fee

• Discount on League Green Fees

• Discount on Cart Rentals

• Discounted non-league rounds

• Discounted advertising at the Course for local businesses

Amsterdam could also offer following incentives for Outings:

• Gift cards or merchandise from the Pro Shop

• Discount on the Outing pricing

• Discounted advertising at the Course for local businesses


Amsterdam should also hold a series of outings at the course, which they would

promote and organize themselves. Three outings over the course of the season can be

held consisting of spring, summer, and fall outings. The outings should be structured as

follows:

• Players divided into three flights, A, B, and C, depending on skill level with the

A flight being the most skilled players

• Points awarded based on which a player finishes within his/her flight

• Points for each flight are added at the end of the last outing to determine the

winner

• Winner of the A flight would receive a free membership to Amsterdam

Municipal

• Winner of the B flight would receive a discount 30% discount to the Amsterdam

Municipal Golf membership

• Winner of the C flight would receive a free 18 hole golf lesson from the

Amsterdam Municipal Pro

Amsterdam Municipal has begun to survey its players on the desirability of a

Montgomery County Tournament. While the responses to the Survey have been limited,

a total of 28 responses to date, 82% of the respondents would be in favor of the

tournament.

The Course currently does not use any metrics to keep track of the success or

failure of any advertising campaign. In order to maximize the benefits of any marketing

program employed by the Course, metrics must be used to understand the impact. A

accurate baseline of the number of golfers playing Amsterdam Municipal and the rounds


they play must first be obtained. Reporting accuracy as well as additional metrics to

track course performance, in several functional areas will be provided in further detail in

future components of the business plan.

Amsterdam Municipal currently runs one promotional print advertisement in the

Amsterdam Recorder and is considering another promotional television advertisement

through Time-Warner Cable. Both are general advertisements and are not promoting any

special event or price. They focus on the overall benefits derived from playing the

Course. Focused advertising will ultimately be more effective as it informs potential

customers of a particular benefit, not to simply inform the audience of the Course’s

existence.

The advertisement in the Recorder, Amsterdam’s largest newspaper, runs weekly

and costs the Course $75 each week. At such a low cost, the advertisement only needs to

persuade three more people each week at $25 each, the daily fee. This advertisement

seems effective because 73% of members are Amsterdam residents and the non-residents

only travel an average of 11 miles to the Course.

The proposed advertisement with Time-Warner Cable is much more expensive

than the newspaper. The Course already has the commercial made, as it paid

approximately $1,000 to produce it last year, according to a member of the Course’s Golf

Commission. It can be assumed that the commercial has a useful life of 5 years before it

becomes obsolete and ineffective. In addition, the Course must pay for new voice-over

for the commercial at a one-time cost of $75, as the original voice-over contains a

promotional discount that will not be offered this year.


The pricing structure for the Amsterdam-Schenectady Time-Warner zone is as

follows:

Time-Warner Media Sales Cost Structure Network Time Cost per 30 seconds The Golf Channel 6am-12am $ 3 4pm-7pm $ 3 6pm-12am $ 6 ESPN 6am-12am $ 33 6am-10am $ 23 4pm-7pm $ 38 6pm-12am $ 66 ESPN 2 6am-12am $ 5 6am-10am $ 4 4pm-7pm $ 6 6pm-12am $ 11 CNN 6am-12am $ 13 6am-10am $ 10 4pm-7pm $ 14 6pm-12am $ 26 Cable News 9 5am-1am $ 8

The Course is currently considering a promotional package that, for $640, would

run a 30 second commercial 20 times per week on Cable News 9. However, this will not

be effective use of advertising dollars, as Cable News 9 viewers do not sufficiently target

the demographic the Course serves: core golfers residing within 15 miles of Amsterdam.

The Course should focus more on the potential market for its services, promoting

special events and tournaments, rather than telling its existing market that they exist.

Advertising events rather than the Course will generate more revenue under the

recommended pricing structure and continue to promote the Course’s attributes.

The initial marketing campaign should focus on developing more leagues and

outing customers and should transition to more communication of the course

improvements, which have been completed over time. With a focus on changing pricing

and brining in more league and outing revenue, the Course can make current needed


improvements by generating more profit per round played. Then, once these

improvements are made, begin an advertising campaign that focuses on the remodeling

effort the Course can be undertaken.


2.4.0 Investment

2.4.1 Budget

The Course should spend a total of $1,000 per year on the following

recommended advertisements:

• Web Site – Information on establishing leagues and outings at the course should

be included on the web site. In addition, information on the series of tournaments

recommended should be included on the home page with links to the rules,

benefits, and how to join. These changes should be executed as part of the Cities

initiative to revamp the Courses web site and therefore the costs to do so will be

included with the overall web site changes.

• News Paper adds – News Paper adds should be placed for leagues, outings, and

the series of tournaments starting late January early February to get people started

on thinking about golfing and to give them enough time to put together their

league or outing. These ads should run bi-weekly through June. The total cost to

do so will be ~$825.

• Fliers – Fliers should be provided at the course to advertise the series of

tournaments and given to members to hand out. A quantity of 1,000 fliers can be

purchased for ~$40 and an order or two should be sufficient. These fliers can be

handed out at the course and distributed throughout the target market.

2.4.3 Critical Success Factors

The major critical success factor to the proposed changes is price elasticity. As

there are few competitors in the Amsterdam area, and the competitors that do exist offer


lower-quality courses at comparable prices, pricing should be relatively inelastic. That is,

the proposed changes should not have a dramatic impact on demand. Because of the

regional lack of niche competitors, demand is predicted to be relatively inelastic.

A number of assumptions are made throughout the marketing plan that could

affect the outcome of any projections that have been made. It is assumed that the Course

can draw customers from a 15 mile radius of Amsterdam. This assumption results from

having non-resident membership traveling an average of 11 miles to the Course. Based

on this data, it is assumed that 15 miles is the maximum radius it can consistently draw

core golfers from.

Next, it is assumed that the total population within a 15 mile radius of Amsterdam

is 102,915. This is based on 2000 Census data and could have changed since then. In

addition, not all small towns were incorporated into this number. Given the possibility of

population change in the region and the fact that the number used for population does not

encompass all towns in the region, this number may not be entirely accurate, but is the

best reasonable assumption available.

Further, it is assumed that the Amsterdam area is reasonably representative of the

US population. It is assumed that national averages of the golfing population can be

applied to this region with accuracy. It is possible that the golfing demographic of this

region differs from that of the US population as a whole.


2.5.0 Conclusion

In its current state, the Amsterdam Municipal Golf Course is a drain on taxpayer

dollars. By using these recommendations to make the course more profitable, the Course

will not only reduce the amount it would draw from its general fund, but will increase the

value of Amsterdam’s greatest asset. Making the Course more profitable, by adjusting its

target market, pricing strategy, and promotional strategy will allow the Course to fund its

operations and effectively plan for both needed and future capital improvements.


2.6.0 Appendix

2.6.1 Appendix 1 - Capacity

peak off peak off peakMay 1-Oct1 Mar-April Oct-nov

months 6 2 2Days 153 60 60time in day(min) 660 540 480tee interval(min) 10 10 10Group size(avg) 3.5 3.5 3.5tee slots per day 66 54 48

Capacity 35343 11340 1008015% days due to weather 30041.55 9639 8568Total capacity 48248.55

Table 1 Golf capacity at Amsterdam Muni

2.6.2 Appendix 2 –Maintenance and Repairs

Totals CycleYearly budget

Every other yr Budget

Total time to cpl(yrs)

Tee boxes 90,000.00$ 1/yr 5,000.00$ 5,000.00$ 18Greens 30,000.00$ 1 every other yr 30,000.00$ 36Sprinkler heads 70,000.00$ 50/yr 10,000.00$ 10,000.00$ 7Controllers 52,000.00$ 1 /yr 4,000.00$ 4,000.00$ 13Drainage 180,000.00$ 9 holes @1/yr 20,000.00$ 20,000.00$ 9Mower 25,000.00$ 1 time 5,000.00$ 5,000.00$ 5Paths 250,000.00$ 10%/yr 25,000.00$ 25,000.00$ 10Total 697,000.00$ 69,000.00$ 99,000.00$

2.6.3 Appendix 3 – Year-to-Date Revenues – June 30, 2008

Through June 30, 2008 Highlighted area denotes inaccuracy in reporting

Memberships Rate Users Total Regular $ 625 217 $ 135,625 Senior $ 600 121 $ 72,600 Senior Limited $ 560 13 $ 7,280 Family $ 1,035 25 $ 25,875 Senior Family $ 985 18 $ 17,730 Junior $ 140 114 $ 15,960 Jr. Golf Benefit, Gift Certtifricates, Gift Certrificates @ City Hall $ 11,570


Total Memberships $ 286,640 Greens Fees Rate Users Total Daily Resident $ 21 23 $ 483 Daily Non-Resident $ 26 270 $ 7,070 Weekend/Holiday Resident $ 23 270 $ 6,210 Weekend/Holiday Non-Resident $ 28 870 $ 22,596 After 3pm $ 17 2,253 $ 38,301 Tournament $ 10,100 Golf Books $ 3,062 $25 Greens Fee $ 25 1,672 $ 41,910 $19 Special $ 19 $ 38,931 League Fees $ 2,530 Total Greens Fees $ 171,193 Carts Rate Users Total Gas $ 260 39.9 $ 10,375 Electric $ 290 1.5 $ 435 Drive on Monthly $ 40 7.3 $ 290 Drive on Daily $ 12 0 $ - Storage $ 50 137 $ 6,850 $335 Gas $ 335 142 $ 47,580 $365 Electric $ 365 12.3 $ 4,476 Miscellaneous $ 690 Total Carts $ 70,705 Lockers Rate Users Total Regular $ 30 $ 3,450 Total Lockers $ 3,450 Total YTD $ 531,988

2.6.4 Appendix4– Target Market Calculation

US pop 307,212,123golfers in us 29500000% of US pop 9.60% Johnstown pop 8446Amsterdam pop 17572total pop 26018est 10% golfers in area 2601.8


2.6.5 Appendix 5 - List of Companies in Amsterdam

21st Century Fitness Century Club Colombian Social Club Inc. Curves Fitness Center Elks Lodge No. 101 Herk’s Tavern Irish American Club Masonic Temple Minnitti’s Grill Parillo’s Armory Grill Polish National Alliance Inc. Schott’s Tavern Skiba’s Tavern Slick’s St Agnello Club St Michael’s Club Tony’s Taver


Appendix O – Operations 3.0.0 Introduction

A solid operations plan and strategy is critical to success for every business, the

Arthur Carter Amsterdam Municipal Golf Course is no exception. These plans should

include roles and responsibilities of all personnel, documented processes for all critical

functions, and a short and long term plan for success. The foundation of the business is

the personnel, and skills needed to perform the day-to-day operations of the golf course.

This operations plan will go through some of the roles and responsibilities of key

personnel, critical processes and utilization of plant and equipment, and will recommend

changes for short and long-term success.


3.1.0 Operational Overview

3.1.1 Golf Commission

According to Chapter 28 of General Code E-Code a six member commission, one

of whom is a non-voting Alderman, is to be created that is responsible for the

management, operation and maintenance of the golf course.8 The other five members are

not city employees or city officials, and serve for five years in a staggered fashion, such

that every year a member of the commissions term is up. The Golf Commission consists

of officers of which a Chairman, Vice Chairman and Secretary, serve one-year terms not

to exceed three consecutive terms. Each officer is nominated and voted on via sealed

ballot. Also included in the charter is a Treasurer, which is currently an open position.

The other members of the Golf Commission are not officers, but serve as committee

heads, which will further explained. All procedures are introduced by a member of the

Golf Commission, are voted on and passed by simple majority. A top-level review of

operational responsibilities is shown in Table 1. Excerpts of further detail obtained from

The Constitution of the Arthur Carter Amsterdam Municipal Golf Commission, dated

April 5, 2004, will be provided in Appendix 1. As shown most of the employees are

involved in many of the operational responsibilities, which makes it difficult to

understand specific responsibilities under each function. Also of note, no one individual

is responsible for course operations and performance.

Function Purchasing Operations Quality Control

Marketing and Sales Service

Golf Commission X X X X X Committee Members X X X

8 General Code E-Code; Chapter 28 section 1; City of Amsterdam, NY


Pro Shop X X X X X Concessions X X X X City Comptroller X Superintendant X X X X

Table 1: Top Level roles and responsibilities by function

3.1.2 Committees

As mentioned the Golf Commission is responsible for the operation and

maintenance of the golf course. In this capacity, according to Article VI of the

aforementioned constitution, the commission shall create the below standing committees.

An example of the Pro Shop Committee is shown that highlights the general nature of the

responsibilities. Other committees that are required to be created are as follows:

Clubhouse, Annual Fee Player, Greens, Improvement, Carts, Long Range Planning,

Tournament and Rules. Current documented responsibilities of each are highlighted in

Appendix 2. It is noted each Committee is head by one member of the Golf Commission

and each are subject to the direction and control of the Golf Commission.

Pro Shop

• Have charge of the Professional Golf Shop and PGA Professional

under contract and arrange for the purchase of any supplies

necessary for operation under the approval of the commission.

It is clear each committee is focused upon some very important variables of the golf

course such as growth, planning, procedures and rules, and purchasing for various

portions of the golf operations, however it is necessary for the course to track successes

and failures and or performance in these areas to ensure improvement moving forward.

In addition, many of the duties described are very general in nature, so specific

responsibilities should be defined for each member of each committee such that


measurements can be developed for baselines and performance tracking can take place.

Some recommended options will be provided in Section 3.7.5.5 to ensure performance is

tracked for improvement reasons and appropriate resources and or corrective actions can

be put in place when improvement is not noted or performance is below requirements.

3.1.3 Superintendant & Maintenance

In addition to the Golf Commission and the committees noted, the golf course

also employs a golf course superintendent and six groundskeepers: a mechanic, a

foreman, three medium equipment operators, and one seasonal worker. Local municipal

golf course maintenance crew sizes were benchmarked and found to range from 5 to 18

full-time and seasonal employees. Amsterdam Municipal is on the low end of this range.

The superintendent and grounds keepers are all employed by the City of Amsterdam and

are responsible for the maintenance and upkeep of the course. Their benefits and salary

are supported by the golf course during operational months and is picked up by the city

during the off-season.

The superintendant manages all maintenance and grounds keeping activities

performed at the golf course. This is a critical function as the grounds are one of the

most important attributes of the golf course as noted by a survey of 1,200 capital district

golfers performed by the Albany Times Union. The survey concluded 49% of

respondents voted Quality/Conditions as most important when choosing a public course

to play.9 In addition, a survey given at Amsterdam Municipal showed that course

9 Albany Times-Union. April 11, 2008, Pete Dougerty. Golf Guide


condition was the most important feature at a golf course with 58% of respondents rating

this highest. Details of this survey can be seen in Appendix 3.

Given this, in addition to the technical nature of many of the aspects of

maintenance and groundskeeping, it is critical the job responsibilities be outlined and

adhered to. The responsibilities for the superintendant are shown in Appendix 4. It is

also noted that the superintendent is a member of the Golf Course Superintendents

Association of America (GCSAA). While this is not a requirement, it has been deemed

an excellent qualification and should be required, given the available resources, best

practice sharing though seminars, and extreme technical nature of this role.

Two cashiers are also on staff at Amsterdam Municipal Golf course. In addition to

tending the cash register, the role of the cashier is to take reservations via phone or walk-

on golfers.

3.1.4 Golf Pro & Concessions

Amsterdam Municipal also provides a Golf Professional who is responsible to

operate and maintain the Pro Shop and golf cart operations. The Pro must also provide

lessons for all patrons as required by contract and must employ an Assistant Pro, a

Starter, and a Ranger to aide in Pro Shop operations and golf course throughput. As

previously noted, the Golf Pro receives a salary of $18,250 per year through 2012, and

keeps all proceeds from golf cart rentals, merchandise sales and lesson fees.

Concessions are also provided though contract by Amsterdam Municipal Golf

Course. Food and beverage is supplied by the concessionaire in the clubhouse as well as

through beverage cart sales, for which the Golf course receives a lease fee of $29,500 per


year until 2009. The golf course receives this added value of convenience for their

customers but does not generate revenue on proceeds from food and beverage sales.

Strong partnerships with the Concessionaire and Golf Pro is critical to ensuring a

good golf experience to all customers as they add value to overall operations and provide

necessary amenities which keep customers returning to Amsterdam Municipal Golf

Course. Given this, their contracts should require processes and procedures be developed

to ensure repeatable results and performance metrics should be developed to validate

performance is maintained at a level acceptable to the Golf Commission.

Recommendations for these metrics and documented procedures will be provided in

section 3.7.5.5 and Appendix 8.


3.2.0 Organizational Reporting Structure

Amsterdam Municipal Golf Course is essentially managed by committee, such

that all decisions flow through the Golf Commission, who vote on and approve each

decision. Certain items, such as capital expenditures must flow through the Comptroller

and or the Mayors office for approval. An unofficial top-level organizational chart is

provided in Diagram 1.

Diagram 1: Top level Organization chart

As shown, the Charter 28 states it is the responsibility of the Golf Commission to

operate and maintain the golf course. Given the above organizational reporting structure

it is currently difficult to determine reporting relationship between the greenskeeper

(Superintendent), Golf Pro and Golf Commission as it is noted in the above diagram,

which illustrates reporting structure into the Amsterdam Mayor. In addition, the

Concessionaire is not listed in the organizational hierarchy and it is recommended to be,

such that all employees understand reporting relationship. Organizational structures for


other local municipal golf courses were also benchmarked. The structures range from

those very similar to Amsterdam Municipal to those having one individual responsible

for all course operations including maintenance, course play, Pro Shop operations, etc.

Recommendations for improvement of the operational reporting structure will be outlined

in section 3.7.5.3.


3.3.0 Hiring

All above paid personnel went through the hiring process for the City of

Amsterdam. As noted, the Golf Commission is appointed by the Mayor, is approved by

the City Common Council and serves terms indicated above. The maintenance staff is a

unionized workforce employed by City Department of Public Works, but report into the

superintendent for day-to-day responsibilities. The cashier is also employed by the City

of Amsterdam.

It is noted that qualification of these employees in addition to the Golf

Commission are currently not documented, or were not available for review. While

many of the employees are very knowledgeable, it is recommended that qualifications of

these employees be defined for future hiring of replacements. In addition, training

programs for employees should be developed to ensure each employee and or member of

the Golf Commission, maintains their qualified status. Recommendations for

implementation and or qualification will be provided in section 3.7.5.1.


3.4.0 Facilities & Capital Equipment

• Golf Course: Clearly the most important feature of the golf course are the

grounds. Quality of the course as noted through a rigorous maintenance and

upkeep program is of critical importance and will be discussed in section XXX.

The golf course generated revenues of $577, 309 in 2008.

• Clubhouse: Provides a meeting place for all customers to convene before or after

golf, which contains many amenities such as food, beverage, and lockers for

members, restrooms and a television for all patrons. The clubhouse generates

revenues of $29,500 per year.

• Pro Shop: Shop contains a variety of golf merchandise for purchase and houses

the cashier for payment of greens fees. The Pro Shop generates expenses of

$18,250 a year.

• Cart Storage: Warehouse facility for storage of approximately 208 carts. Cart

storage generates revenues of approximately $70,000 per year.

• Major Equipment: The golf course owns a variety of maintenance equipment such

as mowers, aerators and trimmers, which cost the City approximately $250,000

total to purchase over approximately 20 years.


3.5.0 Value Added Processes

3.5.1 Maintenance and Upkeep

As noted, maintenance and upkeep of the course are critical components to the

appearance and playability of the golf course. A quality maintenance operation ensures

current members, daily fee golfers and new customers enjoy their experience and keep

coming back to Amsterdam Municipal. This all starts with the customers first impression

of the course. Opinions are solidified during their first round of play, enjoying the lush,

green course as it was intended. Maintenance and upkeep of the course includes

responsibilities listed in the superintendent job description found in Appendix 4. Much

of the groundskeeping duties must be worked around golfers playing the course. This

would include mowing, aerating, watering, fertilizing and chemical application during

off-peak golfing hours so as not to interfere with a players round. Many of these

activities are dependant on the weather and are subject to change with poor weather

conditions. However, a detailed schedule should be used to understand all duties and

when they are performed, such that labor can be scheduled appropriately which would

minimally intrude on paying golfers activities. Recommendations for an example

maintenance schedule are provided in section 3.7.2.1, and Appendix 5.

3.5.2 Speed of Play

The superintendent responsible for maintenance must understand flow of golfers on the

course, such that peak times can be worked around for the maintenance schedule. It is

therefore critical for the speed of play to be understood. According to a recent study,

time to complete 18 holes at Amsterdam Municipal takes approximately 3 hours and 55


minutes, 2:03 on the front 9 holes and 1:52 on the back 9 holes. Speed of play is another

critical feature highlighted by an Albany Times Union study of capital district golfers,

which ranked sixth in importance for choosing a municipal course10 and tied for second

at 17% or respondents noting this was important feature when surveyed at Amsterdam

Municipal.

3.5.3 Capacity Planning

Critical to speed of play, is overall capacity planning and course utilization. Total

capacity at Amsterdam Municipal is difficult to calculate due to many variables, such as

weather, number of days open, operational hours and tee time interval. However, an

analysis was completed with varying different parameters to better understand total golf

capacity, Appendix 6 shows these details. Total golf capacity will range between 78,000

and 27,000 rounds per year, however for these purposes realistic total capacity given this

region, is roughly 48,000-50,000 rounds per year. Maximizing the amount of golfers in

a given day, while keeping speed of play to the required 4-hour time is a balance, and the

goal is to clearly maximize utilization. The average number of rounds played at local

municipal courses per 18 holes is approximately 35,000 per year equating to 70-73%

utilization. Moreover, the more utilized the course the more maintenance practices are

critical to ensure the quality of the course meets the expectations of all customers. In

order to better understand total capacity and overall utilization data accuracy is critical.

Therefore employing the use of a Point of Sale system (POS), will lay the foundation for

metric development such that capacity calculations and several other performance metrics

can be generated.

10 Albany Times-Union. April 11, 2008, Pete Dougerty. Golf Guide


3.6.0 Scalability

Tee times are a limited commodity and as such must be maximized for

profitability. As noted, a maximum capacity of rounds that can be played are contingent

on many factors and at above calculated capacity of 48,000 rounds. Table 2 below shows

possible revenue scenarios using current pricing structure of $25 per round daily fee.

Using the goal of net rate per round of 70-75% of daily fee according to the National

Golf Foundation, the table shows items in bold that are likely scenarios. This would

include rounds played during season from May 1 to September 30 and preseason rounds

in April as well as post-season rounds in October and November. Recommendation on

increasing utilization will be highlighted in section 3.7.1 and will include daily

measurements of rounds played versus total rounds available, such that better planning

and/or opportunity exists to identify these voids in reservations to address possible selling

down round fees to fill the course. Profitability metrics will also be discussed to maintain

acceptable revenue per rounds played.

% Utilization 65% Daily Fee 70% Daily Fee 75% Daily Fee 80% Daily Fee 100% 780,000 840,000 900,000 960,000

90% 702,000 756,000 810,000 864,00080% 624,000 672,000 720,000 768,00070% 546,000 588,000 630,000 672,00060% 468,000 504,000 540,000 576,00050% 390,000 420,000 450,000 480,00040% 312,000 336,000 360,000 384,00030% 234,000 252,000 270,000 288,00020% 156,000 168,000 180,000 192,00010% 78,000 84,000 90,000 96,000

Table 2: Utilization using 48,000 round capacity with varying net rate pre round


3.7.0 Recommendations

According to an article found on the National Golf Foundation, “it is a lot more difficult

to drive revenue if you are just a golf course”11 when speaking about additional revenue

streams such as concessions, and Pro Shop operations. “Every activity feeds off the

others” and for Amsterdam Municipal, current revenue streams consist of approximately

86% of daily greens fees and membership fees. Therefore, it is critical for operational

efficiency to ensure profitability is maximized.

3.7.1 Capacity Planning & Utilization

3.7.1.1 POS system: Critical to the operational success of Amsterdam Municipal

Golf Course is an understanding of operational capacity, customer buying habits, and

trends at the course. Operational efficiency is contingent on data accuracy and baseline

metrics, which could be determined with the use of a Point of Sale (POS) system. SPS

Golf Management Solutions provides a web-based POS system that will help to

streamline tee time reservations, track buying habits and employee activity, and obtain

information regarding registered consumers.

The course currently lacks a sufficient POS system. All reservations and

transactions are tracked manually without the use of any electronic system. This allows

for discrepancies between reported activity and actual activity. This also makes it very

difficult to obtain any accurate information regarding customer buying habits or course

operations. The use of SPS’ software package will help to keep track of activity so that

11 NGF article, Amplify your revenues, NGF.com


these metrics may be used to establish baseline metrics and project future operational

needs.

The POS system offered by SPS, outlined in Appendix 9, will be effective in

tracking the course’s operations. Part of the POS system focuses on the ability of the

customer to reserve tee times online in real time. This streamlines tee time reservations

because the customer no longer needs to speak with the cashier in order to sign up for a

tee time. Additionally, reservations could also be made outside of regular operational

hours. This aspect of the POS system makes the experience of registering for a tee time

more streamlined and user friendly.

In order to use the POS system, golfers must register for its use, providing

personal information such as address and date of birth in exchange for a username and

password that can then be used to reserve tee times. This allows the course to store this

information and use it to establish its customer base demographic, which is very useful

when determining how to cater to customer needs or market the course. Obtaining this

information also allows the course to use this information for direct marketing

campaigns. It could share information regarding the course with members and daily fee

golfers and keep these customers coming back to play additional rounds of golf. In

addition to tracking customer behavior, the POS system could be used to track employee

productivity and establish controls over tee time reservations. This feature would enable

course management to make sure the cashier is productive and not giving preferential

treatment to any particular customer, ensuring that the course will maintain a positive

image for both members and daily fee players alike.


While the course currently lacks a sufficient POS system, the one purchased from

SPS will be suitable for operations, as well as cost-effective. The course paid a one-time

fee of $1,500 for the software, and must pay a maintenance fee of $119 in months of

operation. In addition, the course had to purchase a computer, receipt printer, Internet

connection, and Microsoft Office in order to operate the equipment. Also, course

employees responsible for operating the software must receive 2 days of online training

before “go-live.” While this cost is not insignificant, the benefits provided by the

software far outweigh the costs. Once this POS system is implemented, the course will

be able to obtain sufficient metrics to help plan and streamline its operations.

3.7.1.2 Metrics: Metrics associating operational efficiently such as daily

utilization (tee times booked/available tee times), net rate per round, or more detailed

such as rounds player per hour per day would be beneficial for performance. A typical

day in season will allow for 280, 18-hole equivalent rounds to be played per day based on

10-minute tee time intervals and operating hours from 6:00am to 4:30pm. After 4:30pm,

it was determined that additional 9-hole rounds could be played. Therefore, ideally 280

rounds would be sold for the day, however recognizing the deficiencies to this on a daily

basis, and over longer periods of time, would allow for selling down rounds, or offering a

discount to golfers to fill open capacity, or allow for better planning during slower times

if trends are noted for an overall improvement in yield management. This could also

allow for tournaments or leagues to be booked during these times, which will help keep

utilization metrics at an acceptable level. Results of these metrics can be posted or

published to help solicit additional ideas to maximize utilization. Further, tying in

financial performance can be obtained by generating a Revenue per Round metric, or Net


Rate per Round metric that would evaluate revenues per round on a daily or longer term

basis. As noted, net rate per round metrics for well-run golf facilities are approximately

70-75% of the daily fee rate.12

3.7.2 Maintenance

As noted previously, maintenance is a critical feature of a course and directly

related to playability and condition or quality of the course. Inefficiencies in operation

add to lower profitability, which in turn force municipal golf courses to lean out

operations, and result in deferred maintenance of capital improvements, ultimately

resulting in a deteriorating product further lowering revenues and market share.

Scheduling of maintenance will tie into peak hours of operations and must be scheduled

accordingly to ensure speed of play. In addition, maintenance is always changing and is

contingent on many factors including weather, which is difficult to predict. Agronomy is

a specific science that ties all features of golf course care that are very technical in nature

and therefore specific recommendations on qualification of the superintendent are

provided under section 3.7.5.1.

3.7.2.1 Scheduling: Scheduling of maintenance on various holes by various

duties should be mapped out on a daily and weekly basis such that the Golf Commission

understands the scheduling requirements to ensure minimal conflicts with paying

customers. A typical example schedule is mapped out in table below, details are

provided in Appendix 5. It would be further necessary to evaluate times of day each hole

is addressed for each duty if possible and a time study be completed on each duty for

more efficient scheduling as well as labor utilization rates for productivity and or staffing

requirements. The current maintenance staff is a unionized labor force and enforcing a 12 http://golfbusiness.com/pageview.asp?doc=944&m=11&y=2003; By the Numbers, Ryan Cook

http://golfbusiness.com/pageview.asp?doc=944&m=11&y=2003


schedule and or completing a time study on the necessary tasks, may prove to be

challenging, however, enforcement of the schedule based on expected times will increase

the course’s operational efficiency. If issues are noted, it would be critical to obtain

support from union leadership, citing benefits to the community overall.

Day 1 Holes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Duties Mow greens(6x week) x x x x x x x x x x x x x x x x x x Mow tees(3x wk) x x x x x x x x x x x x x x x x x x Mow fairways(3x wk) Mow roughs/trim(1x wk) Rake traps(4x wk) x x x x x x x x x x x x x x x x x x Change cups(every other day) x x x x x x x x x Change tee boxes(every other day) x x x x x x x x x x x x x x x x x x Areation Fall and Spring Chemical applications As necessary Watering x x x x x x x x x x x x x x x x x x

Table 3: Typical example of daily schedule

3.7.2.2 Metrics: Several metrics can be used to evaluate performance for the

overall maintenance of the course and are tied in with expenditures. For example greens

expense per maintainable acre can be better understood. Baselines should be recorded at

current levels. A review of cash flow statements to determine overall maintenance

expenditures was approximately $85,764. Amsterdam Municipal Golf Course has 104

maintainable acres, so the baseline cost per maintainable acre is approximately $825.

3.7.2.3 Surveys: An overall increase in course quality via a rigorous maintenance

and upkeep program will certainly show in survey results. In addition, tying the survey

into the use of maintenance metrics will help define the value of improvements made. A

survey was conducted at Amsterdam Municipal, which showed 34% of respondents

stated the condition of the greens were below average. Similarly, conditions of rough

was average and condition of cart paths was poor, at 44% and 50% respectively.


Additional survey results as shown in Appendix 3. Further surveys can be completed that

can tie into overall operating performance as well. The National Golf Foundation (NGF)

provides a fee service that can develop surveys and report results on customer satisfaction

and loyalty drivers. According to an article by the NGF, surveys bring out deficiencies

that can be acted upon for improvement. One example of this was noted on surveys

received by a particular subscriber stating course condition was an area critical to driving

customer loyalty and also stated an improvement in course conditions was needed. This

operator increased their maintenance costs and operational payroll by 35%, to make

necessary improvements. Results found on a survey conducted the following year

showed in increase in positive customer feedback. There was also significant

improvement in the bottom line: a 23% increase in revenue, 14% increase in rounds and

8% increase in revenue per round year-over-year.13

3.7.3 Speed of Play

3.7.3.1 Ranger: As noted, the Ranger is supplied by the Golf Pro but when

questioned, it was reported that the Ranger typically is only provided for golf

tournaments or specific peak times on the golf course. To ensure speed of play is

maintained for operational efficiency, the Ranger must be available to support golf

operation efficiency, which is required by contract. Currently, members play most of the

rounds at Amsterdam Municipal, which keeps speed of play moving efficiently due to

experience and familiarity with the course. However, marketing plans for bringing in

additional daily fee golfers may slow down play. In addition, poor operational efficiency

and/or maintenance intrusiveness may contribute to an even slower speed of play. It is 13www.NGF.com, Operators Find Success Using NGF's Golfer Survey Program.

http://www.ngf.com/


recommended that the Golf Pro contract be further enforced and require a Ranger be on

course during regular golfing hours to ensure that speed of play keep moving forward.

When the changes above are implemented, there will be additional need to maximize

speed of play for overall efficiency.

3.7.3.2 Time Clocks: Time clocks placed every other hole on the golf course may

also help drive speed of play. Noting tee time of groups teeing off at the first hole and

setting each subsequent clock back the time it takes to golf to the next hole with a clock,

such that every time you pass a clock on a tee box it should show the time you teed off.

This will help golfers know how they are doing for speed of play according to the

calculated hole times previously discussed. The Ranger can also check tee off times

recorded on receipts and compare to clocks on the holes to help narrow down what group

on the course is slowing up play. This should be a minimal cost for 9 battery-operated

clocks plus the installation at the holes.

3.7.4 Golf Professional Services

There are a number of areas where the Amsterdam Municipal can improve operations

and either reduce costs or generate additional revenue when coupled with the use of the

POS system. These changes can either be made when the current contract has ended in

2012, or the current contract can be amended.

As discussed previously the Amsterdam Municipal Golf Course currently

employs two seasonal cashiers who are responsible for taking tee times and selling Green

Fee passes at the course to non-members. However, all golf cart sales are made in a

different location at the Pro Shop. See Appendix 10 for a more detailed description of


this process. The course can streamline this process by conducting the sales of greens

fees, golf cart rentals, and merchandise in the Pro Shop under the cognizance of the Golf

Pro. This will allow the course to eliminate the salaries of the two seasonal cashiers who

make between $8.50 and $10.50 an hour. This will save the Course approximately

$40,000 annually in salary and benefits.

3.7.4.1 Cart Management

Amsterdam Municipal can also generate more revenue by taking over the

management of the golf carts rentals and eliminating annual storage and use fees.

Currently, an Amsterdam Municipal member can purchase a golf cart and store it at the

course for a annual fee of $335 for a gas-powered cart or $365 for an electric-powered

cart. The revenue generated from the yearly fees goes to the course and totaled $70,705

in 2008. Amsterdam also rents carts on a daily basis at the price of $8 and $12 to

members and non-members respectively. The revenue generated from the daily golf cart

rental goes to the Golf Pro.

The potential increase in revenue generated by taking over the management of the

golf course is dependent on how many rounds per year at the course and the percentage

of those rounds with golf carts. Table 4 below shows two possible scenarios.

Total Rounds Percentage w/Cart Revenue from Rentals

40000 80% $280,000

28000 50% $126,000

Table 4: Potential Golf Cart Rental Revenue


We also need to consider investment, maintenance, and utility costs as well as an

adjustment to the Golf Pro’s yearly salary to make up for the loss of profits from the golf

carts. Amsterdam Municipal currently has approximately 210 golf carts stored at the

facility. However, 190 are owned by members and 20 are owned by the Golf Pro. After

eliminating the annual storage fee Amsterdam can attempt to purchase the number of golf

carts needed from either the Golf Pro or the members. Additional golf carts may be

leased in the event additional carts are needed to support golf tournaments at a cost of

$36 each per day or annually for $1,000 per cart. A used electric golf cart typically costs

from $2,500 to $5,000 depending on condition. An initial investment will need to be

made in purchasing golf carts. Maintenance costs for the 20 carts owned by the

Amsterdam Municipal Golf Pro average $3,500 annually and may occasionally spike to

$8,000-$10,000. Amsterdam currently pays for the electricity to power the carts. Actual

costs were unable to be obtained but total electrical costs for the Course were ~$10,000 in

2008.

The average salary for a Golf Pro at a daily fee golf course nation wide ranges

from $40,000 to $62,000. An adjustment to the Golf Pro’s salary will need to be made to

compensate for the loss of cart rental profits. For this assessment we assume an increase

in salary to $51,000. Amsterdam can expect an increase in expenses of approximately

$50,000 annually plus the investment cost to purchase golf carts and additional revenue

between $126,000 and $280,000, using current pricing.

If the change is not made until the current contract runs out, Amsterdam

Municipal Golf Course can begin to charge a nominal fee per golf cart per round. If the


course were to charge a fee of $2 per round, an additional $50,000-$80,000 can be

generated depending on how many rounds of golf each member plays a season.

3.7.5 Personnel

3.7.5.1 Qualifications

Currently, it is uncertain if the Golf Commissions and subsequent committee

members are qualified to operate and maintain a golf course. However, it is certain that

each brings professional experience, knowledge of the City of Amsterdam and

knowledge of Amsterdam Municipal Golf Course. It is recommended the Golf

Commission have or obtain the qualifications listed below in Table 4, which will

ultimately help guide the golf course in the future. The superintendant is a technical

position requiring extensive knowledge in turf management and recommended

qualification are highlighted below.

Golf Commission Committee Heads

Operating knowledge of a golf course such as short-term plans and day-to-day activities through program supervisors including the selection, training, appraisal, and supervision of permanent staff and seasonal workers.

Short and long term planning ability for revenue building, capital expenditures and expansion, individual and tournament play, golf instruction, course maintenance and improvements, and operations of a golf shop and a snack bar. Knowledge of PGA rules and regulations Independent entrepreneurial business leadership skills

Extensive public contact in dealing with the public, private groups, businesses, special interest group within Town government, golf associations and other course directors, and the surrounding communities in the promotion, development, and maintenance of the course, program, and services require tact and diplomacy. Marketing and promotional skills for development of business strategy Expense and revenue management skills

Superintendant Considerable knowledge of the principles of course design, course management and maintenance, including course landscaping and turf management


Extensive knowledge of equipment use in course landscaping and turf management Ability to develop and adhere to schedules and assign labor Short and long term planning ability for capital expenditures on course maintenance and improvements, Knowledge of finance and ability to budget effectively Member of the Golf Course Superintendants Association of America

Table 4: Recommended Qualifications

The skills are essential to the operation and maintenance of a golf course, and likely

difficult to obtain without considerable experience in the golf course industry. Therefore

it is recommended the golf course hire a General Manager to take over many of the duties

as described above and utilize the golf commission as resources for implementation of

items, knowledge of the membership and as a liaison to City leadership.

3.7.5.2 Golf General Manager: Hiring a General Manager (GM) to help guide

Amsterdam Municipal Golf Course into the future will help drive overall operational

efficiency. Utilizing a GM will help tie all aspects of golf operations and help identify

short and long-term plans. After a period of approximately three years, the golf GM

position should be evaluated against performance to the timeline provided in section 3.8.0

based on a sample job description has been provided in Appendix 7. Currently, the

reporting structure is ineffective and identified responsibilities are lacking to ensure the

golf course is operated as efficiently as possible to maximize revenues. Many if not all,

of the Golf Commission have other daily responsibilities outside operating and

maintaining the Amsterdam Municipal Golf Course and to ensure necessary processes

and controls are put in place to operate efficiently it is necessary this be a full-time

position. The GM can focus on top-level strategy on golf operations, such as utilization,

tournaments, league play, marketing and promotion of the golf course to help generate

the additional revenues to pay for the role. The GM will also help guide the committees


in the right direction for improvement of the course and allow for better budgeting short

and long term for capital improvements. The GM will help establish a baseline for many

of the aforementioned metrics with use of the recommended POS system, such that

measureable results can be verified and improved upon moving forward. Daily, weekly,

monthly and seasonal reports can be run by the GM to help focus resources and

assignment of responsibilities as necessary. In addition, he/she will ensure the necessary

infrastructure is in place to ensure operational and financial efficiency, as well as

appropriate training for Golf Commission and committee members to ultimately take

over these responsibilities upon contract end. A topical review of salaries for golf

General Mangers at Daily fee courses is shown in the below graphs.

Diagram 2: Median Salary of Golf GM; www.payscale.com; www.salary.com

The hiring of a GM and the subsequent increase in salary expense will be made

achievable as a result of the pricing and operational recommendations, which will either

increase course profits and/or reduce course expenses.

3.7.5.3 Organizational Structure: It is recommended the organizational structure

change to what has been highlighted below, such that all employees and contract

personnel understand the hierarchy. The Golf Commission will directly report to the

Mayor and the Common Council with a dotted line report into the Golf GM. The entire

http://www.payscale.com/

http://www.salary.com/


staff will report into the Golf GM, with the Golf Commission having the staff be dotted

line report to them, ensuring work direction ability. The Golf GM and the Golf

Commission are on equal ground, however, all decisions from the Golf GM must be

approved though the Golf Commission, and as such will act similarly to a Board of

Directors.

Diagram 3: New reporting structure

3.7.5.4 Documentation & Training: It is necessary to document all critical

procedures and train employees to those procedures to obtain superior and repeatable

results. A review of critical procedures was completed and recommendations for needed

documentation are included in Appendix 8. All employees can be identified on this

matrix and may be trained on procedures according to responsibility. The GM can help

with identifying additional critical processes as well as documenting the appropriate

protocols for each procedure. Summer interns can be employed to help with writing

procedures under the guidance of the GM. Many interns are available at minimal or no

cost, as many school programs will offer credit for business internships.


Training procedures must be developed to ensure all employees get appropriately

trained on required processes, such that standardization of duties is achieved, and desired

and repeatable results are obtained. Once training is documented necessary performance

standards can be developed and communicated to all personnel.

3.7.5.5 Metrics: Measuring performance is essential to overall improvement of

operations. Some critical parameters have been indentified in Table 5 below along with

suggested goals from industry standards where available. Upon installation of the POS

system, such that data is more accurate, baselines can be taken, evaluated for

acceptability and compared to industry standards. Once these metrics are established and

variables that affect these metrics are better understood, improvement initiatives can be

developed to address deficiencies where necessary. A complete understanding of

performance will more readily be understood when comparing to industry standard.

Benchmarking similar courses around the country is recommended and can be achieved

through many services available, one of which is www.golfdatatech.com. Reports are

quite expensive and are snapshots in time of various aspects of the golf industry. Another

service, which is recommended to subscribe to is a service called Performance Track.

This is a service developed by PGA America in cooperation with National Golf Course

Owners of America (NGCOA).14 “The PGA of America’s complimentary research

service to support PGA Professionals and their employers, will team with the NGCOA’s

Financial Benchmark Program, which surveys and reports on key operational metrics by

local market.”15 Using this free service will allow a good benchmark comparison on an

ongoing basis.

14 http://www.pgalinks.com/index.cfm?ctc=1778 15 http://www.ngcoa.org/pageview.asp?doc=1595

http://www.golfdatatech.com/

http://www.pgalinks.com/index.cfm?ctc=1778

http://www.ngcoa.org/pageview.asp?doc=1595


Area Benchmark16 Yield Management Course utilization(rounds played/rounds available) Revenue per available tee time Net rate per round 70-75% fee Net rate per day per hour Greens fee as % of gross revenue Membership revenue as % total gross revenue Carts revenue as % of total revenue Expense Management Maintenance(expense per maintainable acre) $2,500 to $12,000 Marketing expense % of gross revenue 2-5% Admin costs as% of gross revenue Pro & Concessions Merchandise cost of sales Percentage 60-75% Merchandise revenue per round Food and beverage revenue per round Food and beverage cost of sales Percentage 30-35%

Table5: Recommended metrics to track

For overall profitability it is critical to focus on expense management, revenue

management, marketing management, and drive overall efficiency in operations through

use of metrics. Relating various expenses broken down by department, then relating this

information with the number of rounds played, gives a good comparison for the

contribution of each with respect to overall operations. Customer feed back can also be

measured and compared to revenues to track overall performance though the voice of the

customer.

16 http://golfbusiness.com

http://golfbusiness.com/


3.8.0 Budget and Timeline

A timeline of major events is shown in Appendix 11, beginning in fiscal year

2008-2009 and lasting through fiscal year 2011-2012, the latest date of a currently

scheduled capital improvement project. The major events are broken down into 5

categories, as follows: personnel, documentation, metrics, capital improvements and

maintenance scheduling. There are also costs associated with each of the events with

subtotals at each category and a grand total of all events listed. Some categories had no

costs associated with them because they involved documentation tasks that are assigned

to current employees within their current scope of work. The most expensive category

was capital improvements, costing $540,000 over 4 fiscal years and including major

improvements to the course itself and facilities on the property. The grand total of all

events listed is $623,864, over 4 fiscal years.


3.9.0 Conclusion

Operational excellence should be an overall goal for Amsterdam Municipal Golf

Course as there are many opportunities for improvement in operations. Operational

efficiency through use of defined processes, procedures, responsibilities, training and

metrics will enable the golf course to increase revenues and decrease expenses.

Employing the use of a POS system to generate accurate data, hiring a full time GM

dedicated to streamline day-to-day operations and changing the reporting structure such

that one person is responsible for overall success of the golf course, will help drive

accountability, improve efficiency, increase golf course utilization and increase

profitability for long term success and future capital expenditure improvements.

Ultimately this will take dedication, teamwork, and focus on the customer such that the

condition of the course improves year over year, which will keep paying customers

coming back to enjoy their golf experience and will increase the value of one of the

largest assets of the City of Amsterdam.


3.10.0 Appendix

Appendix 1: Golf Commission Officers and Responsibility

Officer Responsibility

Chairman

Presides over the commission during monthly meetings Ensures proper vouchers or claims are submitted and approved by 4/5th of the commission, subject to audit by the Common Council of the City of Amsterdam Consent and approval is noted on all appropriations for operational function prior to any commitment made Controls tie braking vote for rules or resolutions in case of a tie Votes on amendments to Constitution

Vice Chairman Performs all duties of the Chairman in the absence of the Chairman

Secretary

Keeps all minutes of all commission meetings and issues notices of meetings Responsible for all correspondence to membership “Annual fee Players” of the golf course including notification of censure, suspension, and expulsions, as well as informing of events and policy decisions of the commission Promotes to surrounding communities the contributions and benefits of the golf course Maintains a list of Annual fee Players Votes of amendments to Constitution

Treasurer

Shall track all funds and accounts pertaining to the golf course consistent with the City Controller Prepares and distributes annual financial report Prepares annual budget two months in advance of the date required by the Common Council of the City of Amsterdam


Appendix 2: Committees and Responsibility

Committee Responsibility

Pro Shop

Have charge of the Professional Golf shop and PGA Professional under contract and arrange for the purchase of any supplies necessary for operation under the approval of the commission

Clubhouse

Have charge of the maintenance and operation of the clubhouse under contract and shall arrange for purchase of any supplies necessary for operation and maintenance Develop house rules subject to approval of the commission

Annual Fee Player Responsible for organizing initiatives to increase the number of Annual Fee Players a the golf course

Greens

Have charge of the golf course, the grounds, equipment pertaining to maintenance and operation of the golf course and grounds, excluding the Pro Shop and Clubhouse Responsible to arrange for purchase of any supplies necessary for operation and maintenance of the golf course as described above

Improvement

Responsible for organizing large projects to improve the beauty and playability of the golf course Formulate plans, including manpower and material cost estimates as well as project impact of current and future playing conditions of the golf course

Carts

Responsible for the golf cart storage shed waiting list Develops policies and procedures governing storage and use of golf carts on the golf course

Long Range Planning

Responsible for developing five and ten year capital improvement plans for the golf course for approval by the Commission in June, including depreciation and replacement, large landscaping projects such as tee or green replacement, building and parking lot improvements and maintenance

Tournament

Responsible for organizing tournament dates and through Secretary, corresponding to those individuals or organizations which desire to hold tournaments at the golf course Establishes rules, regulations, and fees for holding tournaments, which will require closing course or the tees for a period of time Rules established are passed by majority rule

Rules

Responsible for all rules governing Annual Fee Players, fees, course etiquette, and all other policies used to govern the course including cart storage and use, cart waiting list, locker use and waiting list, course winter activities, use of course by school golf teams, violation of rules, and regulation of practice areas, course closing, starting times, rain checks and refunds Must be comprised of all Commission members


Appendix 3 Golf Survey

Sex M F

Age <17 18-24 25-34 35-44 45-5455-64 >65

How far did you travel (in miles) to come here today? <5 6-10 11-15 16-20 21-25>25

Are you a member? Y NType of member? Std Family Junior Senior

Senior family Senior Limited

Are you in a golf league? If so how many? Y N

How many rounds do you play monthly? 1-2 3-4 5-8 9-12 >13+

How many rounds do you play monthly at Amsterdam Municipal? 1-2 3-4 5-8 9-12 >13+

PoorBelow

average AverageAbove

average ExcellentWhat is your overall opinion of Amsterdam Municipal golf course? 1 2 3 4 5

Rate the following attributes of the golf course: 1 2 3 4 5

Condition of greens 1 2 3 4 5

Condition of rough 1 2 3 4 5

Condition of cart paths 1 2 3 4 5

Condition of carts 1 2 3 4 5

Condition of clubhouse 1 2 3 4 5

Drainage 1 2 3 4 5

Merchandise offerings in Pro shop 1 2 3 4 5Wait time on course 1 2 3 4 5Ease of reservations 1 2 3 4 5Tee time availability 1 2 3 4 5

Course fee 1 2 3 4 5Challenging course 1 2 3 4 5Membership price 1 2 3 4 5Overall value 1 2 3 4 5Rank items below in order of importance to you (1-5) NOTE: 1 is most important; use # 1-5 only onceChallenging course

Condition of courseTee time availabilityLow cost of golfSpeed of play

Miscellaneous questions:What is your average golf score? <=70 75 85 95 >=100

How much do you spend on food/beverage during round at the course? <$5 $6-10 $11-19 $20-30 $30+

Please circle 1

AMSTERDAM MUNICIPAL GOLF COURSE SURVEYPlease take a minute to take this anonymous survey. Information obtained from this survey will be used to improve your golf experience here at Amsterdam Municipal Golf course. Thank you for your participation.

How much do you spend in the pro shop on average per round? <$5 $6-10 $11-19 $20-30 $30+

Why do you choose to play golf at Amsterdam Municipal?___________________________________________________________________________________________


Sex

M84%

F16%

M

F

Membership

Non16%

Member84%

Member

Non

Age

0.0% 0.0%

15.8%13.2%

28.9%

34.2%

7.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

<17 18-24 25-34 35-44 45-54 55-64 >65

Age

Rounds Played per month

5.3%

0.0%

21.1%

39.5%

34.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

1-2 3-4 5-8 9-12 >13+

Rounds played per month

Travel distance

52.6%

13.2%15.8%

10.5%

2.6% 2.6% 2.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

<5 6-10 11-15 16-20 21-25 >25 NR

Travel distance

Rounds Played per month @ Amsterdam Muni

7.9%

2.6%

28.9%31.6%

28.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

1-2 3-4 5-8 9-12 >13+

Rounds played per month


Overall opinion

0.0%

11.4%

28.6%

54.3%

5.7%8.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Poor Below avg Avg AboveAvg

Excellent NR

Overall opinion

Condition of greens

13.2%

34.2%31.6%

21.1%

0.0% 0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Poor Belowavg

Avg AboveAvg

Excellent NR

Condition of greens

Condition of cart paths

50.0%

36.8%

5.3% 5.3%2.6%

0.0%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Poor Belowavg

Avg AboveAvg

Excellent NR

Condition of cart paths

Condition of rough

8.3%

25.0%

44.4%

22.2%

0.0%

5.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Poor Belowavg

Avg AboveAvg

Excellent NR

Condition of rough

Condition of carts

0.0%

11.4%

45.7%

37.1%

5.7%8.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Poor Belowavg

Avg AboveAvg

Excellent NR

Condition of carts

Condition of Clubhouse

2.8%

8.3%

41.7%

36.1%

11.1%

5.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Poor

Below av

gAvg

Above

Avg

Excell

ent

NR

Condition of clubhouse


Pro shop merchandise offereings

10.5%

34.2%36.8%

10.5%7.9%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Poor

Below av

gAvg

Above

Avg

Excell

ent

NR

Merchandise offerings in Proshop

Drainage

2.8%

38.9%

44.4%

11.1%

2.8%5.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Poor Below avg Avg Above Avg Excellent NR

Drainage

Wait time of course

8.3%

19.4%

50.0%

16.7%

5.6% 5.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Poor Belowavg

Avg AboveAvg

Excellent NR

Wait time on course

Ease of reservations

10.5%

23.7%

36.8%

18.4%

10.5%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Poor Belowavg

Avg AboveAvg

Excellent NR

Ease of reservations

Tee time availability

2.7%

29.7%

21.6%

32.4%

13.5%

2.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Poor Belowavg

Avg AboveAvg

Excellent NR

Tee time availability

Course fee

0.0% 0.0%

37.8%

29.7%32.4%

2.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Poor Below avg Avg Above Avg Excellent NR

Course fee


Average golf score

2.6%

21.1%

60.5%

7.9% 7.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

<=70 75 85 95 >=100

Average golf score

Overall value

0.0% 0.0%

44.7%

31.6%

23.7%

0.0%0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Poor Below avg Avg AboveAvg

Excellent NR

Overall value

Spend in Pro Shop

58.8%

20.6%

11.8%

2.9%5.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

<$5 $6-10 $11-19 $20-30 $30+

Avg Spend-Pro

Spend on Food or Beverage

25.7%

31.4%28.6%

11.4%

2.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

<$5 $6-10 $11-19 $20-30 $30+

Avg Spend F&B

% of respondents voted least important feature at golf course

29.4%

5.9%

11.8%

41.2%

11.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Challengingcourse

Condition ofcourse

Tee timeavailability

Low cost ofgolf

Speed ofplay

% respondents

% of respondents voted most important feature at golf course

0.0%

58.8%

17.6%

5.9%

17.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Challengingcourse

Condition ofcourse

Tee timeavailability

Low cost ofgolf

Speed ofplay

% respondents


Appendix 4: Superintendant Job Description


Appendix 5: Maintenance Schedule

Day Day

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Duties DutiesMow greens(6x week) x x x x x x x x x x x x x x x x x x Mow greens x x x x x x x x x x x x x x x x x xMow tees(3x wk) x x x x x x x x x x x x x x x x x x Mow teesMow fairways(3x wk) Mow fairwaysMow roughs/trim(1x wk) Mow roughs/trim x x x x x x x x x x x x x x x x x xRake traps(4x wk) x x x x x x x x x x x x x x x x x x Rake traps x x x x x x x x x x x x x x x x x xChange cups(every other day) Change cupsChange tee boxes(every other day) x x x x x x x x x x x x x x x x x x Change tee boxes x x x x x x x x x x x x x x x x x xAreation AreationChemical applications Chemical applicationsWatering x x x x x x x x x x x x x x x x x x Watering x x x x x x x x x x x x x x x x x xDay

Day1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Duties 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Mow greens x x x x x x x x x x x x x x x x x x DutiesMow tees Mow greensMow fairways x x x x x x x x x x x x x x x x x x Mow tees x x x x x x x x x x x x x x x x x xMow roughs/trim Mow fairwaysRake traps Mow roughs/trimChange cups x x x x x x x x x x x x x x x x x x Rake trapsChange tee boxes Change cups x x x x x x x x x x x x x x x x x xAreation Change tee boxesChemical applications AreationWatering x x x x x x x x x x x x x x x x x x Chemical applications


Day1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Duties 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Mow greens x x x x x x x x x x x x x x x x x x DutiesMow tees Mow greens x x x x x x x x x x x x x x x x x xMow fairways Mow teesMow roughs/trim Mow fairways x x x x x x x x x x x x x x x x x xRake traps x x x x x x x x x x x x x x x x x x Mow roughs/trimChange cups Rake traps x x x x x x x x x x x x x x x x x xChange tee boxes x x x x x x x x x x x x x x x x x x Change cupsAreation Change tee boxes x x x x x x x x x x x x x x x x x xChemical applications AreationWatering x x x x x x x x x x x x x x x x x x Chemical applications


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18DutiesMow greensMow tees x x x x x x x x x x x x x x x x x xMow fairways x x x x x x x x x x x x x x x x x xMow roughs/trimRake trapsChange cups x x x x x x x x x x x x x x x x x xChange tee boxesAreationChemical applicationsWatering x x x x x x x x x x x x x x x x x x

Fall and Spring

Fall and Spring

Fall and Spring


4Holes

As necessary

Holes1

As necessary

2Holes

3

As necessary

Holes

5Holes


6Holes


7Holes



Appendix 6: GC Capacity

PeakMay 1-Oct1Months 6 6 6 6 6 6 6 6 6 6 6 6Days 153 153 153 153 153 153 153 153 153 153 153 153Time in day(min) (11hrs) 660 660 660 660 660 660 660 660 660 660 660 660Tee interval(min) 7 10 12 15 7 10 12 15 7 10 12 15Group size(avg) 4 4 4 4 3 3 3 3 4 4 4 4Tee slots per day 94 66 55 44 94 66 55 44 94 66 55 44Weather 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.10 0.15 0.20 0.25Capacity 57703 40392 33660 26928 43277 30294 25245 20196 57703 40392 33660 26928Total Capacity with weather adj 49047 34333 28611 22889 36786 25750 21458 17167 51933 34333 26928 20196

Off peakMar-AprilMonths 2 2 2 2 2 2 2 2 2 2 2 2Days 60 60 60 60 60 60 60 60 60 60 60 60Time in day(min) (9hrs) 540 540 540 540 540 540 540 540 540 540 540 540Tee interval(min) 7 10 12 15 7 10 12 15 7 10 12 15Group size(avg) 4 4 4 4 3 3 3 3 4 4 4 4Tee slots per day 77 54 45 36 77 54 45 36 77 54 45 36Weather 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.10 0.15 0.20 0.25Capacity 18514 12960 10800 8640 13886 9720 8100 6480 18514 12960 10800 8640Total Capacity with weather adj 15737 11016 9180 7344 11803 8262 6885 5508 16663 11016 8640 6480

Off peakOct-NovMonths 2 2 2 2 2 2 2 2 2 2 2 2Days 60 60 60 60 60 60 60 60 60 60 60 60Time in day(min) (8hrs) 480 480 480 480 480 480 480 480 480 480 480 480Tee interval(min) 7 10 12 15 7 10 12 15 7 10 12 15Group size(avg) 4 4 4 4 3 3 3 3 4 4 4 4Tee slots per day 69 48 40 32 69 48 40 32 69 48 40 32Weather 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.10 0.15 0.20 0.25Capacity 16457 11520 9600 7680 12343 8640 7200 5760 16457 11520 9600 7680Total Capacity with weather adj 13989 9792 8160 6528 10491 7344 6120 4896 14811 9792 7680 5760

Total annual capacity 78773 55141 45951 36761 59080 41356 34463 27571 83407 55141 43248 32436Min max difference

Average total capacity of all 48000 used for capacity

Tee Time interval Change @ (9hrs/day) Tee Time interval Change with group change Days open due to weather

Tee Time interval Change Tee Time interval Change with group change Days open due to weather

Tee Time interval Change @ (9hrs/day) Tee Time interval Change with group change Days open due to weather


Appendix 7: Sample GM Job Description

Minimum Qualifications: • Bachelor’s Degree in Business Administration or related field, five years of progressively responsible experience in golf course management, including an apprenticeship with a PGA golf course; three years of management and supervisory experience. • Must possess and maintain PGA Class A certification. • Must possess and maintain Golf Instructor certification. • Successful completion of the pre-employment physical exam prior to commencing work. • Successful completion of thorough background investigation. • Must possess, or ability to obtain within first six months of employment and maintain First Aid, CPR, and AED certifications.

Knowledge, Skills, and Abilities: • Knowledge of applicable federal and state laws, regulations, and requirements. • Knowledge of golf course construction, maintenance, and operations. • Knowledge of irrigation systems. • Knowledge of the game of golf. • Knowledge of fertilizers, pesticides, and insect/disease control. • Knowledge of budgeting, cost estimating, and fiscal management principles and procedures. • Knowledge of the principles and practices of management. • Skill in organizing resources and establishing priorities. • Skill in preparing, reviewing, and analyzing operational and financial reports. • Skill in analyzing problems, projecting consequences, identifying solutions, and implementing recommendations. • Strong interpersonal and communication skills and the ability to work effectively with a wide range of constituencies in a diverse community. • Skill in operating business computers and office machines, including in a Windows environment, specifically Word, Excel, Access, and presentation software (such as PowerPoint). • Skill in examining and re-engineering operations and procedures, formulating policy, and developing and implementing new strategies and procedures. • Skill in budget preparation and fiscal management. • Skill in analyzing problems, projecting consequences, identifying solutions, and implementing recommendations. • Employee development and performance management skills. • Ability to supervise and train employees, to include organizing, prioritizing, and scheduling work assignments. • Ability to plan, organize, coordinate, and facilitate major golf tournament events. • Ability to plan, organize, and implement promotional programs and events. • Ability to foster a cooperative work environment. • Ability to function as a coach. • Ability to communicate effectively, both verbally and in writing. • Ability to develop and maintain recordkeeping systems and procedures. • Ability to establish and maintain professional relationships with individuals of varying social and cultural backgrounds and with co-workers at all levels. • Ability to maintain confidentiality. • Ability to prepare reports; to edit, organize and present clearly and concisely, oral


and written reports of findings and recommendations. • Ability to be persuasive and tactful in controversial situations.

Position Summary: Under limited supervision of the Mayor, oversees the management of all aspects of the golf courses, to include course operations, golf concessions, turf and equipment maintenance, and retail facilities. Maintains confidentiality of all privileged information.

Essential Duties & Responsibilities: The general level and nature of this position are described in the headings below. This is not an all- inclusive list of all responsibilities, duties, and skills required of personnel in this classification.

• Establishes, implements, and communicates goals, objectives, policies and procedures in accordance with strategic plan. • Directs and oversees all aspects of the operation of the golf course, to include all pro shop operations, course supervision, course maintenance, course marketing, and customer relations. • Establishes and implements short- and long-range organizational goals, objectives, strategic plans, policies, and operating procedures; monitors and evaluates programmatic and operational effectiveness, and effects changes required for improvement. • Interacts with staff, community members, and visitors to the golf courses to ensure customer satisfaction. • Oversees the supervision of personnel, which includes participating in recruiting, selecting, orienting, training, coaching, counseling, disciplining, work allocation, and problem resolution; evaluates performance and makes recommendations for personnel actions; motivates employees to achieve peak productivity and performance. • Plans, organizes, and oversees the operation, maintenance, and security of the golf course, including facilities, equipment, and supplies; arranges and/or procures maintenance, repair, and security services. • Provides professional advice and service to clients of the course; acts as a professional resource, as required, in the technical aspect of the game. • Develops annual operating budgets and provides fiscal direction to the golf course. • Ensures that all operations are carried out in accordance with federal, state, and local retail, food services, and associated regulations, guidelines, and standards; ensures that golf activities are in compliance with policy provisions and PGA regulations. • Represents the organization at various community and/or business meetings; promotes existing and new programs and/or policies. • Plans, develops, and implements strategies for generating resources and/or revenues for the golf course. • Oversees the coordination and organization of special promotional activities such as local and regional golf tournaments. • Develops and implements marketing strategies; selects and provides local group lessons; implements tournament programs; arranges publicity and media coverage. • Establishes and maintains professional relationships with state, regional, and national golf organizations. • Maintains professional growth and development through seminars, workshops, and professional affiliations.


• May lead private or group golf lessons. • Monitors and enforces safety rules and regulations, and proper use of safety equipment. • Maintains confidentiality of all privileged information. • Contributes to a team effort and accomplishes related results as required. • Performs other duties as required.

Physical Demands: While performing the duties of this job, the employee regularly is required to sit and stand; have manual and finger dexterity; stoop, and talk or hear. The employee is frequently required to walk, and climb stairs. The employee is occasionally required to crawl, reach above shoulder level, crouch, kneel, balance, push/pull, and carry. The employee must occasionally lift and/or move up to 50 pounds.

Work Environment: Work is performed in an office setting with a moderate noise level and in outside environments with moderate exposure to unusual elements, such as extreme temperatures, dirt, dust, fumes, smoke, unpleasant odors, and/or loud noises. Work environment involves some exposure to hazards or physical risks, and requires following basic safety precautions. Work may be stressful at times. Evening, holiday and weekend work may be required. Travel, attendance at various meetings and work outside of normal business hours may be required.


Appendix 8: Documents and Critical Procedures


Appendix 9: Point of Sale System Overview













• Rain Check processing is tracked from tee sheet and verified at POS


station.






Appendix 10: People Flow


Appendix 11: Timeline Of Major Events


Appendix 11: Continued


Appendix P – Finance 4.0.0 Introduction

Well-planned and managed finances are the cornerstone of every successful

business. Amsterdam Municipal Golf Course currently faces a difficult financial

situation in that their revenues are steadily declining due to shrinking membership and

there are several capital improvements that are needed in order to maintain the course’s

quality. The following recommendations have been made and are intended to maximize

revenues and control costs for the golf course.

Modify Pricing Structure Resident Rates Membership Rate Structure League Rate Structure Outing Rates

Promotions Tournaments Local Businesses and Social Groups Media advertising (television, radio, newspaper) Website Upgrade

Capacity Planning & Utilization Point of Sale (POS) System Metrics

Maintenance Scheduling Metrics Surveys

Speed of Play Ranger Time Clocks

Golf Professional Cart Rental Management

Personnel Qualifications Golf General Manager Organizational Structure Documentation & Staff Training Metrics


The recommendations listed will maximize revenue and control costs for the golf

course, but they will also provide a basis for being able to grow the golf course into a

self-sustaining municipal entity. The recommendations will yield adequate returns such

that the required capital improvements will be achieved without as much need for

municipal bonds. The most important financial goals for Amsterdam Municipal Golf

Course are as follows:

Maintain/grow current membership

Increase course utilization to at least 75% of total capacity

Earn revenues sufficient enough to subsidize at least half the funding

necessary for capital improvement projects beginning in fiscal year 2012


4.1.0 Revenue Model

4.1.1 Revenue Generation

The most significant recommendation in Amsterdam Municipal Golf Course’s

ability to start earning greater revenues is a change in the current pricing structure for

both members and daily fee golfers. The inherent problem the golf course faces with its

existing pricing structure is members pay a low one-time membership fee and can golf as

many times during the season as they want. Essentially, this structure expedites the wear

and tear of the golf course, with no additional revenues to help maintain and repair it.

The high quality and reasonable price of this course is superior to its public and

municipal competitors, and without a fundamental change in its revenue structure, this

reign will not continue. The proposed pricing structure will support the wear and tear of

every round of golf so that the maintenance staff will be able to keep the quality of the

course at its peak. Another pricing change which will increase revenues with little

impact on members is the implementation of weekly league fees for members, increasing

the number of tournaments hosted by Amsterdam Municipal Golf Course and taking over

the golf cart rentals from the Golf Pro (beginning in FY13 when his current contract

expires).

Fiscal Year Rounds Revenue Rounds Revenue Rounds Revenue2009-2010 28,000 $521,868 35,000 $603,173 40,000 $665,1622010-2011 28,000 $792,461 35,500 $944,310 40,000 $1,046,5252011-2012 28,000 $796,519 36,000 $961,738 40,000 $1,056,4772012-2013 28,000 $903,524 36,500 $1,273,056 40,000 $1,434,8892013-2014 28,000 $913,569 37,000 $1,303,570 40,000 $1,460,561Table 1: Revenue Model Scenarios

Pessimistic Scenario Most Likely Scenario Optimistic Scenario

Table 1 above shows three revenue models (pessimistic, most likely, and optimistic),

which were developed based on the proposed pricing structure changes, and an estimated


number of members and rounds of golf played annually. The most likely scenario,

highlighted in yellow assumes the current membership remains constant at 525 members

and rounds of golf played will remain constant (assuming the high end of 2008 estimate

of rounds played) at 35,000 for the first year, and increase by 500 rounds annually in each

subsequent year. The most likely scenario represents 73-78% of the total capacity of the

golf course. This growth is based on improved marketing strategies highlighted in

Section 2.3.4, Promotion in the Marketing Plan. Such strategies include:

Seeking out local businesses and social clubs to host summer golf leagues and

outings and giving promotional incentives to encourage participation,

Hosting more tournaments for businesses, women and top golfers in the county,

and

Advertising locally via cable television, newspaper and radio.

The pessimistic scenario assumes that membership will drop about 5% to 500 members

as a result of the pricing changes. The number of rounds played is assumed to remain

constant for all years at 28,000 based on the low end of the 2008 estimated rounds of

golf. The pessimistic scenario represents 58% of the total capacity of the golf course.

The optimistic scenario assumes that membership will increase approximately 5% to 550

members. The number of rounds played is assumed to grow to 40,000 which is 83% of

capacity, as noted in Section 2.0.1 Value Add in the Marketing Plan. It is assumed that

the costs associated with operating the golf course will grow at approximately 3% per

year, based on inflation with the exception of adding the Golf General Manager in early

2010, which is the primary reason for the negative increase in net income from 2008 to

2009. It should be noted that the change in pricing structure would not occur until the


2010 golf season. Therefore, the revenue estimates for fiscal year 2009-2010 reflect the

current pricing structure for the 1st and 2nd quarter, and the new pricing structure for the

3rd and 4th quarter. A summary of the income statement is shown in Appendix 1.

4.1.2 Assumptions

The revenue that is estimated in Table 1: Revenue Model Scenarios is highly

dependent on the assumptions that are being made. Below is a list of assumptions used in

the revenue generation model.

• 20% of daily fee golfers are residents; 80% of daily fee golfers are non-residents

• 40% of daily fee golfers play before 3pm; 60% of daily fee golfers play after 3pm

• 80% of all rounds played are by members; 20% of all rounds played are by daily

fee golfers

• 40% of all rounds played are during the weekend; 60% of all rounds played are

during the weekday

• All annual membership fees are collected in the 4th quarter (April-June) of the

fiscal year

• The total membership and rounds of golf played by members are broken down as

follows, based on membership logs kept by Amsterdam Municipal Golf Course

(Appendix 2):


Memberships

45%

20%

5%

5%

3%

22%RegularSeniorSenior LimitedFamilySenior FamilyJunior

• The total number of rounds of golf played per open month are broken down as

follows:

Estimated Seasonal Rounds of Golf

0

1,000

2,000

3,000

4,000

5,000

6,000

April

May June July

August

Septem

ber

October

Month of Play

Roun

ds P

laye

d

Daily Fee

Members

4.1.3 Time Horizon

The current time horizon for the financial statements is 5 years, beginning in

fiscal year 2009-2010 and ending in 2013-2014. During this timeframe, the financial


statements effectively show the growth in revenues based on pricing structure changes.

The additional revenue will be kept in the Golf General Fund and will be used for 3

capital improvements, 1) drainage on back of course, 2) cart paths, milling and paving,

and 3) maintenance building renovation. According to the City of Amsterdam Capital

Project and Equipment Five Year Plan 2009-2013 (Appendix 3), all three capital

improvement projects were planned for fiscal year 2009-2010. However, due to the lack

of funding available in the Golf General Fund, it is recommended that the golf course

postpone those projects to fiscal years 2011-12, 2012-13, and 2013-14, respectively.

Based on the projected revenue for each year beginning in fiscal year 2009-10,

Amsterdam Municipal Golf Course will only need to borrow $100,000 each for the first

two projects, and nothing for the final project. They will borrow from the City of

Amsterdam via Bond Anticipation Note (BAN), with repayment over 4 years, to be paid

once annually and an interest rate of 12%. These terms are consistent with the other

BAN’s that were issued to the golf course for an equipment purchase and the replacement

of the clubhouse roof, which were issued in fiscal year 2007-08. A summary of the

outstanding Golf Fund Debt is shown in Appendix 4.


4.2.0 Estimating Revenues and Costs

Appendices A (Income Statement Summary) and E (Revenue Model) highlight in

detail the projections for the increased revenue to be generated based on the change in

pricing structure. The Most Likely scenario was used to populate the operating revenue

line in the income statement summary. Increased revenues will be generated from annual

membership dues, greens fees for members and non-members, weekly dues for leagues,

hosting 8-12 tournaments or outings per golf season, golf cart storage fees for cart

owners, and golf cart rental fees beginning in fiscal year 2012-13.

Based on the projected revenues and costs, Table 2 highlights the bottom line profit (loss)

for each fiscal year over the 5-year time horizon.

FY09 FY10 FY11 FY12 FY13 FY14Revenues 551,733 623,070 986,664 1,005,169 1,331,234 1,369,773Expenses 609,122 683,632 729,548 742,955 881,213 889,979Net Income ($57,388) ($60,562) $257,116 $262,214 $450,021 $479,794Table 2: Profit/(Loss) Projections by Fiscal Year


4.3.0 Cash Flow Statement

The Amsterdam Municipal Golf Course Cash Flow Statement Summary is

provided in Appendix 6. Appendix 6 shows the actual cash flow statements from fiscal

year 2004 through 2008 as provided by the City of Amsterdam Comptroller. Fiscal years

2010 through 2014 include receipt estimates based on projected revenues reflecting

pricing structure changes. Disbursement estimates are based on projected maintenance

costs provided by the City of Amsterdam escalated by 3% per year, and include the

addition of the Golf General Manager to payroll. Additionally, the projected Bond

Anticipation Notes for the cart path, drainage and maintenance building renovation are

built into projected disbursements for capital debt and assets in fiscal years 2012-14. The

cash flow statement is organized in the direct manner, which demonstrates the total

receipts less total disbursements resulting in the cash flow for the current year. Current

year cash flow is then added to the beginning year cash which totals to the ending year

cash. The receipts section is broken down into three parts: 1) charges to customers, 2)

other revenues, and 3) interest earnings. The disbursements are broken down into 5

sections, which differentiate operating costs (employee pay and benefits & supplier and

vendor payments) from investment (acquisition of capital assets) and financing costs

(interest & principal on capital debt).

Fiscal year 2009-10 demonstrates the change in pricing structure midway through

the year, which coupled with the additional payroll and benefits from the Golf General

Manager, is the reason that the ending year cash is so nominal. Fiscal year 2010-11

shows a tremendous jump in ending year cash, which is a result of the pricing structure


change. Significant costs of capital improvement projects and the additional revenues

from golf cart rentals explain the high fluctuation between fiscal years ending 2012-2014.

4.3.1 Net Present Value & Internal Rate of Return

The Net Present Value (NPV) is used to analyze the profitability of an investment,

based on the projects cash inflows and outflows, as well as inflation rates and the

required rate of return. Due to the nature of the municipal golf course in that the capital

improvements planned for the 5-year time horizon are required to maintain the quality of

the course. Since the cart path, drainage and maintenance facility projects are unlikely to

draw additional golfers, a NPV analysis was calculated based on the total cash inflows

and outflows of the golf course from 2010-14. While this analysis strategy does not take

into consideration the NPV for each capital improvement individually, it does assess

whether the costs are too high to keep the golf course from operating profitably. Based

on a required rate of return of 10% and an annual inflation rate of 3%, the net present

value of the capital improvements is $420,706.84. Since this number is significantly

greater than zero, it is recommended that the golf course proceed with the improvements.

The Internal Rate of Return (IRR) is used to determine the rate of growth a

project is expected to generate. The same strategy as NPV was used in calculating IRR

for the cart paths, drainage and maintenance facility projects. Despite the fact that the

free cash flow of the golf course is negative for the first year, the total IRR across the 5-

year time horizon from 2010-14 is 69.1%. Again, since this number is significantly

greater than 0%, it is desirable to undertake this project. However, should the golf course

decide not to go forth with some of the recommendations, it is prudent to recalculate the

NPV and IRR based on any changes in the projected revenues and expenses. Appendix 7


shows the full calculation of the Net Present Value and Internal Rate of Return for the

capital improvement projects planned in fiscal years 2012-14.


4.4.0 Balance Sheet

The Amsterdam Municipal Golf Course Balance Sheet Summary is provided in

Appendix 8. Appendix 8 shows the actual balance sheets from fiscal year 2004 through

2008 as provided by the City of Amsterdam Comptroller. See Section 4.3.0 Cash Flow

Statement for an explanation of change for fiscal years 2010 through 2014.


4.5.0 Financing Strategy

Based on the projected earnings beginning in fiscal year 2009-10, the cost of the

capital improvements that are planned at Amsterdam Municipal Golf Course will be

offset by increased earnings each year. As a result, instead of needing to take out a Bond

Anticipation Notes from the City of Amsterdam totaling $440,000, the golf course will

only need to finance $200,000; $100,000 each for the course drainage project and cart

path improvements. As a result, the golf course will save approximately $28,800 in

interest and $240,000 in cash flow over 4 fiscal years.

Currently, the City of Amsterdam’s bond rating is “A”. Bond ratings are assessed

based on the following factors: economy, debt structure, financial condition,

demographic factors, and management practices of the governing body and

administration. According to the three major rating agencies for municipal bonds,

Moody’s Investor Services, Standard & Poor’s, and Fitch Ratings, the City of

Amsterdam’s municipal bonds are considered upper-medium grade. Bonds that are rated

“A” possess many favorable investment attributes. Factors giving security to principal

and interest are considered adequate, but elements may be present which suggest a

susceptibility to impairment sometime in the future.17

17 WM Financial Strategies. Municipal Bond Ratings. Accessed from http://www.munibondadvisor.com/rating.htm.


4.6.0 Risk Analysis

4.6.1 Financial Risks

The most significant financial risk related to Amsterdam Municipal Golf Course

is the reaction of golfers to the change in pricing structure. The Most Likely scenario of

revenue generation assumes that golfers accept the new pricing structure and continue to

golf at their usual rate. Even though the pricing structure aligns with the competing

public and municipal courses in the Capital Region, the golfers who have been playing at

Amsterdam Municipal for years may react negatively. Some people may decide to golf

at a different course, but they will be paying more elsewhere than they would at

Amsterdam for an equivalent amount of golf. Should a significant number of golfers

decide to take their business elsewhere, Amsterdam Municipal can change their golfing

mix to draw more greens fee golfers. Adding a driving range, golf instruction, and

improved operations are strategies aimed at keeping members coming to Amsterdam

because of the camaraderie of the local community and the convenient location, despite

the change in pricing structure.

4.6.2 Strategic Risks

The loss of members is a significant risk to Amsterdam Municipal. The majority

of the revenue generated by the course and the rounds played. Amsterdam has

consistently lost members over the past decade dropping from approximately 700

members in the late 1990’s to 534 members in 2008. The loss of members can be caused

by a number of things such as:

• The current downward turn of the economy resulting in current members having

less disposable income to spend on golf.


• Members moving out of the area

• As a result of age, health, or injuries

The current pricing structure does little to mitigate this risk. However, the proposed

pricing structure in addition to the proposed utilization efforts will mitigate the risks of

losing members. This will be done by (1) generating more revenue per round and (2)

fully utilizing the courses resources, tee times, to maximize revenue generated.

4.6.3 Operational Risks

Operational efficiency is critical to success for Amsterdam Municipal to increase

their revenues. Lack of efficiency in expense management, revenue management, and

yield management will not allow Amsterdam Municipal Golf Course to operate

efficiently which is necessary to increase their revenues for the needed capital

expenditures. One factor that may help with risk of inefficiency and management of

these operations is hiring a Golf General Manager. This will allow a visible line of

responsibility to all operation matters and further coordinate all functions that are

essential to running the golf course, such as maintenance, and improvement initiatives.

The reporting structure will be such that all employees would report to the General

Manager, as this role will have the necessary qualifications to operate and maintain the

golf course. The GM would take advisement from the Golf Commission who would act

as the board of directors for top-level decision-making, but the GM would assign and

enforce the roles and responsibilities necessary for proper accountability and efficiency.

Hiring a GM also has some risks, as it is critical the Golf GM have sufficient experience

and a proven track record to ensure the appropriate qualifications. Once way to ensure

this experience is to require PGA Class A certification as General Manager. This would


ensure proper educational experience to operate and maintain a golf course. A sufficient

background check will need to be done to check references and experience in running a

golf course as well.

4.6.4 Risks Outside the Company’s Control

As an outdoor recreational activity, the course requires good weather in order to

operate at capacity. The impact of normal weather patterns and the current drainage

abilities are taken into account in the projected financial statements. However, changing

weather patterns and not repairing the current drainage system may adversely affect the

projected results. While changing weather patterns, including the increased frequency

and severity of storms, are beyond the control of course management, repairs to the

drainage system should be made as soon as fiscally possible in order to maintain the

quality of play for the course and mitigate this risk. Failure to mitigate this risk will

result in a loss of membership and a decrease in daily fee play.


4.7.0 Timeline

Appendix 9 is the timeline of major events for each of the marketing, operations

and financial plans for Amsterdam Municipal Golf Course. Events are broken down into

7 categories, as follows: personnel, documentation, metrics, capital improvements,

maintenance scheduling, golf professional services, and pricing. Expected revenues and

costs are also highlighted for each activity and are subtotaled for each category.


4.8.0 Summary

Based on all of the recommendations that were made in the marketing and

operations plans, Amsterdam Municipal Golf Course has a very strong financial future.

The most challenging part of this transformation is ensuring that the leadership at the golf

course stops looking at the business as a not-for-profit just because it is a municipal

entity. In this case, hard business decisions need to be made to turn around the structure

and organization of the course and it will certainly pay off in the end, as demonstrated in

the financial statements. Amsterdam Municipal Golf Course already has a fundamental

advantage over competing municipal golf courses in its high quality Robert Trent Jones

course design, but coupled with the aforementioned recommendations it is bound to

become one of the best values in New York’s Capital Region.


Appendix 1 – Income Statement


Appendix 2 – Membership Comparison


Appendix 3 – Five-Year Plan


Appendix 4 – Golf Fund Debt


Appendix 5 – Revenue Model


Appendix 6 – Statement of Cash Flow


Appendix 7 – NPV and IRR


Appendix 8 – Balance Sheet


Appendix 9 – Timeline


Appendix Q – Pricing Research

The Amsterdam Municipal Golf Course’s current pricing, specifically the

membership pricing, is significantly lower than there competition. As a result the

Amsterdam Municipal Golf Course has the opportunity to generate significantly more

revenue if they were to adjust their pricing upward to better align with their target market

and their local competition. To determine the optimal pricing structure and level, the

pricing structure of other local semi-private, public and municipal course were evaluated.

In addition, an analysis was performed to determine the impact to revenue of different

pricing structures along with a sensitivity analysis of those structures.

Competition

Amsterdam Municipal Golf Course has a number of competitors. Table 1 below

shows the six public or semi-private golf courses either within Fulton-Montgomery

Counties or within 15 miles driving distance from Amsterdam as well as Amsterdam

Municipal. We benchmarked the courses that met these criteria due to the Course’s

potential to serve Amsterdam Municipal’s target market of core golfers who live within

~15 miles of the Course.

Course Weekday Weekend Length Notes Canajoharie 25 30 5,837 Semi-private ($750) Pioneer Hills 20 25 5,700 Semi-private ($450-$800) Fox Run 33 36 6,400 With cart, Semi-Private ($575-$695) Briar Creek 23 26 5,667 Hales Mills 27 27 5,995 No Golf Pro Amsterdam 25 25 6,370 Semi-private ($625) Average w/o Amsterdam 23 28

Table 1: Local Competition *Carts typically range in price from $12-$16 per person for 18 holes


There are a number of other 9-Hole courses in the target region. However, these

were not considered competitors to Amsterdam Municipal as they cater to a different

target market, focusing more on beginners than core golfers. Private courses were also

excluded from the analysis. These were not considered because they serve a target

market seeking a private club vice a golf course.

The above courses are of comparable quality and target the same market. Briar Creek is

of comparable quality, but the length of the course detracts from the challenge and

quality of play. Their clubhouses are also similar to Amsterdam Municipal in that they

are suitable gathering places, but are unlikely suitable venues for more formal events

such as a wedding. Fox Run and Briar Creek are generally regarded as not having quality

matching Amsterdam Municipal. Overall, the closest competition in terms of offerings

consists of Canajoharie and Pioneer Hills.

Strengths

Currently, the strength of the course is its pricing strategy. Their membership

plans offer a tremendous value to core golfers, non-resident fees are lower, and daily fees

do not limit golfers to a number of rounds. However, attractive pricing does not ensure

customer loyalty. Additionally, the course in not or are barely making a profit each year.

Making an adjustment to pricing strategy, as outlined in the Pricing Section, will allow

the Course to become more profitable. This profitability will in turn allow the Course to

investment in capital improvements to increase the overall quality of the Course.

Investment in capital improvements will then allow the course to change Strengths from


pricing to course quality. Superior maintenance and investment into the course will help

to develop customer loyalty and ensure the long-term success of the Course.

Weaknesses

Pricing as identified above is also a vulnerability in terms of customer loyalty.

Pricing for League play as outlined in the pricing section, is a drain on course resources

(tee times) and generate almost no revenue. Additionally, the course only utilizes 30-

50% of its total capacity for leagues.

As a municipal course, Amsterdam Municipal faces higher operating costs as

compared to their competition. Labor rates for city employees or contractors are higher

for Amsterdam Municipal, as it must pay a prevailing wage. These higher operating

costs make it more difficult for the Course to plan for capital improvements.

Opportunities

The current pricing strategy also represents a tremendous opportunity. If the

Course utilizes the pricing strategy proposed in the Pricing Section of this report, it

should become more profitable. This increase in profitability will increase the viability

of projects related to capital improvements. The condition of the course, which has been

noted to be a major driver of course preference, would improve greatly. Additionally, an

increase in long term profitability will allow the course to send more money back to the

city. Communicating these improvements to members and non-member golfers in the

target region, will help justify future price increases, further increase revenue, and

contribute to the long-term success of the Course.


Threats

The current state of the economy has put a pinch on consumer spending.

According to the National Golf Foundation, golfer confidence, as measured by attitudes

and perceptions about the effects of the economic recession, has declined. “When it

comes to general finances, 2/3 of the nation’s 15.7 million adult core golfers are feeling

the economic strain and are reigning in their spending. As such, approximately 30-40%

are playing fewer rounds of golf.”18 Therefore, discretionary spending, which includes

spending on recreational activities such as golf, has decreased as well. This could

potentially threaten the future growth of the course.

Another threat to Amsterdam Municipal is the political nature of the Course

operations. Political officials appoint the Golf Commission and if those political officials

are voted out of office, it could lead to turnover in the management of Amsterdam

Municipal. Management turnover could lead to a discontinuity in operations that could

have a negative effect on the Course’s customer base. This specific threat will be

addressed within the operations deliverable.

Pricing

Amsterdam Municipal’s current pricing, shown in the table below, is set such that

the revenue generated from a round of golf on average will be between $10.03 and

$13.05 in 2009 depending on the average number of rounds per member used. This

could range between 40-52 rounds per member, but is not tracked by the Course. In

2008, Amsterdam Municipal generated $458,733 in total revenue from green fees and 18 National Golf Foundation. “Golfer Confidence Declining.” www.ngf.org.


membership fees. Given the total number of rounds played, between 27,500-34,000

rounds, this calculates to be 38-50% of the standard greens fee. According to the

National Golf Foundation, a golf course should strive to generate revenue per round equal

to 70-75% of the standard greens fee. Current pricing for Amsterdam Municipal is

shown in Table 2.

League Rates Greens Fee* Outing Member Non-Member Standard Membership**

Amsterdam 25 1500 0 17 625 Table 2: Current Pricing *Includes both Weekdays and Weekends, all greens fees are for 18 holes **Members play between 40-52 rounds per year on average

Daily Green Fees

As mentioned, pricing should be adjusted to attract golfers from the target market

and to generate more revenue per round to support capital improvements. In addition to

the local courses reviewed the Competition Section above, local municipal courses were

also reviewed to help establish pricing benchmarks. Table 3 below shows the green fees

for local municipal courses.

Weekday Weekend

Course ResidentNon-

Resident Resident Non-

Resident Capital Hills 17 28 17 28 Schenectady 18 24 20 26 Western Turnpike 22 29 22 32 Town of Colonie 21 26 22 28 Nick Stoner 20 20 22 22 Amsterdam 25 25 25 25 Average (Not including Amsterdam) 20 25 21 27

Table 3: Municipal Green Fee Prices


Amsterdam currently charges a non-member $25 for a day pass at the course,

which allows the golfer to play as many holes as they desire in a given day. In fiscal year

2008, 7,400 rounds were played by non-members who paid a greens fee to play

Amsterdam Municipal. This represents between 22-26% of the total estimated rounds

played at the course. Of the 7,400 rounds by non-members, 1,140 were played by non-

residents. It is reasonable to assume that a significant portion of non-member rounds

played by residents were from the target market of core golfers in Amsterdam.

Changing the Amsterdam Municipal Golf Course pricing as shown below in

Table 4 below is recommended. The recommended pricing changes will make the

structure of Amsterdam’s pricing more consistent with its competition, including both

local municipal and public courses. The changes will also result in an increase in revenue

generated by daily green fees of 7%, from $118,804 to $126,546, based on the same

number of rounds played.

Weekday Weekend Resident Non-resident Resident Non-resident

Amsterdam (Recommended) 24 28 26 31 Average (Municipal) 20 25 21 27 Average (Public) 23 23 28 28 Table 4: Recommended Green Fee Prices


Membership Pricing

Table 5 below shows membership rates for competing courses.

Course Standard Membership Capital Hills 300 +10 per Round Western Turnpike 885 Canajoharie 750 Pioneer Hills 1050 Amsterdam 625

Table 5: Local Semi-private Membership prices

Amsterdam is currently priced significantly below that of other semi-private

courses in the area. Changing the membership pricing structure to a structure similar to

that of Capital Hills in Albany is recommended. This pricing structure will result in the

people who play the course the most paying the most. Therefore more evenly

distributing the cost of operating and maintaining the course to the members who play the

course the most frequently. Pricing should be as follows in Table 6:

Type Membership Green FeeStandard 350 15 Senior 336 13 Senior limited 315 13 Family 595 15 Senior Family 560 13 Junior 87.5 7

Table 6: Recommended membership pricing

The changes will result in an increase in revenue of 19% to 32%, from 458,733 to

$534,666-$591,811 depending on the number of rounds per member estimated, while

holding total membership constant.

Chart 1 below shows the impact of membership loss on revenue. The proposed

membership, the current membership, as well as a number of other pricing structure and

level options were evaluated as well. As shown under the proposed strategy more


revenue will be lost per member lost, however, this as expected due to the proposed

model generating more revenue per member than the current model.

Revenue vs. Number of Members

$300,000.00

$350,000.00

$400,000.00

$450,000.00

$500,000.00

$550,000.00

$600,000.00

$650,000.00

534 518 503 488 473 459 445 432 419 406 394 382 371

Total Membership

Reve

nue

650700250-10350-10250-15350-152008 Baseline

The proposed model is much more robust than the current model with regard to

loss of membership and will continue to generate more total revenue than generated in

2008 with a decrease in membership up 31%.

Unlike a flat rate membership model the proposed pricing structure is sensitive to

the number of rounds played per member per year. Chart 2 shows the impact of # of

decrease in rounds played per member on the current model, the proposed model, and a

no membership model, along with various pricing levels.


Revenue vs. Rounds per member

$350,000.00

$400,000.00

$450,000.00

$500,000.00

$550,000.00

$600,000.00

$650,000.00

52 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20

Rounds per member

Reve

nue

650700250-15350-15No Memberships2008 Baseline

While the proposed model is more sensitive than the current model to fluctuations

in the number of rounds played per member it will continue to generate more revenue up

to a decrease in rounds per member of 54%.


Outings

For group outings such as tournaments and other special events Amsterdam

Municipal charges a flat rate in place of a per person rate, which is unlike other

Municipal Courses. In 2008, Amsterdam generated $10,100 in revenue from outings and

expects to generate $12,000 in 2009. Table 7 shows outing prices for local municipal

courses including Amsterdam Municipal.

Course Outings Capital Hills 48 w/cart Schenectady 41 w/cart and gift certificate Western Turnpike 47 w/cart Town of Colonie 41 w/cart Amsterdam 1500

Average (Not including Amsterdam) 44 Table 7: Municipal Outing and Membership Prices

Changing outing pricing to a per person price of $31 and $36 plus cart for

residents and non-residents respectively is recommended. This will begin to start

generating more revenue per outing starting at 49 participants. Additionally, Amsterdam

should not conduct shotgun start outings unless the outing has committed to a minimum

of 72 people. The outing requires the course to be shut down for the 4.5 to 5 hours to

play the course plus the time it takes to clear the course of golfers. On average

approximately 150 rounds of golf are played at Amsterdam Municipal per day.

Approximately 75% are played by the members and 25% played by non members.

Therefore on average Amsterdam Municipal under the proposed pricing structure will

make $2,600 on average of the course of a day, this equates to 86 golfers in an outing

with out carts. While 72 is less than that of the average number of golfers the revenue for

the 72 is guaranteed where the others are not. In addition, many of the golfers who


would normally play during the time outings is being held may adjust and play at a

different time either before or after the outing.

League Pricing

The Amsterdam Municipal Golf Course currently charges $10 per league member

to reserve the league tee-times for the season. Green Fees for playing in a league are

covered under the membership fee and non-members pay the twilight price of $17.

Amsterdam currently has 8 leagues with a total of 252 members of which the majority are

Amsterdam Municipal members. Table 8 below shows League Rates at other local

municipal courses.

League Rates Course Resident Non Resident

Capital Hills 13 18 Schenectady 17 17 Western Turnpike 16 16 Town of Colonie 15 20 Amsterdam 0 17 Average (Not including Amsterdam) 15 18

Table 8: Municipal League Rates It is recommended to require Amsterdam Municipal members to pay Green Fees

for participating in a league. The Green Fee should be set at $15 per round; this is

consistent with leagues at other local municipal courses. Additionally, league tee times

are typically premium time for golf courses, having league members playing without

paying severely limits the courses ability to generate revenue from other paying

customers. The change will also result in an increase in total revenue of 14%, from

$458,733 to $521,983 based on the same number league members.


The above recommendations are estimated to result in a total increase in revenue of 35-

48% from $458,733 to a range of $606,922 to $664,067. Additionally, revenue can be

further increased through increasing Amsterdam Municipal’s share of their target market.

Revenues of $100,000 or more can be generated based on total course capacity of

~48,000 rounds per year, current usage of 43-68%, and the size of the target market as

discussed in Section 2.1.2. Further detail will be presented in a price sensitivity analysis,

to be discussed in subsequent components of the business plan.


Appendix R – Revenue Sources Research I. Overview

Amsterdam Municipal Golf Course (AMGC) offers the best value of many of its

municipal competitors: a top-quality Robert Trent Jones designed course for a reasonable

price. However, one of the biggest challenges that the course faces is growing its

membership, and in turn increasing its revenue to pay for much-needed capital

improvements. Currently, the course membership consists of 523 people, with

demographics highlighted in the table below:

Course Demographics

Gender Male Female 460 88% 63 12%

Residency Amsterdam Residents Non-Residents 366 70% 157 30%

Table 1 In the past 10 years, membership has declined 26%, from about 700 members in

the late 1990’s. The course is in need of two major capital improvements, cart path

refurbishment and a new course drainage system, totaling approximately $500,000. In

order to maintain the course’s current quality, the Golf Commission needs to raise

additional revenue to pay for the required maintenance upgrades.

As such, the Amsterdam Municipal Golf Course should consider the development

of women and youth programs in order to a) boost membership among the surrounding

community, and b) raise revenues to pay for maintenance upgrades to maintain its stature

among the best municipal courses in the area.


II. Golf Programs for Women

According to the National Golf Foundation, approximately 23% (5.5 million out

of 23.9 million total) of all golfers in the United States are adult women19.

Comparatively, only 12% of Amsterdam Municipal Golf Course’s membership consists

of women. This comparative statistic indicates that there is plenty of room for growth in

AMGC’s membership for women. All other factors the same, if the current number of

women members doubled, AMGC would earn nearly an additional $40,000 per annum.

History

Women in golf date back some 500 years, and it was a female in fact, Mary

Queen of Scots, who commissioned the building of the sport’s Holy Grail, St. Andrews,

in 155220. Below is a timeline of other major milestones in the history of women and

golf21.

Women in Golf Timeline

1552

Mary, Queen of Scots, an avid golfer, coins the term "caddie" by calling her assistants "cadets." It is during her reign that the famous golf course at St. Andrews is built.

1867 The Ladies Club of St. Andrews, Scotland, is formed - the first ladies' golf club.

1895 The First U.S. Women's Amateur championship is held in Hempstead, N.Y.

1916 The Professional Golfer's Association of America is founded. It is replaced by the Ladies PGA six years later.

1944 The Women's Professional Golf Association (WPGA) is founded. 19 Berkley Golf Consulting. Statistics About Women and Girl Golfers. Available from http://www.nancyberkley.com/771810.html; accessed 25 April 2009. 20 Ocean State Womens Golf Association. The History of Women in Golf. Available from http://www.oswga.org/interviews/pressReleaseEB5-22-03.htm; accessed 18 April 2009. 21 Berkley Golf Consulting. Important Events in Women’s Golf. Available from http://www.nancyberkley.com/774892.html; accessed 25 April 2009.

http://www.nancyberkley.com/771810.html

http://www.oswga.org/interviews/pressReleaseEB5-22-03.htm



1963 First nationally televised women's event - the U.S. Women's Open. 1977 The PGA of America votes to accept female members.

1991 The first Women in Golf Summit is held. Women leaders in the golf industry meet to discuss ways to increase women's participation in golf.

Table 2 Understanding Women Golfers

As noted above, the women golfer demographic is one that is really an untapped

source of revenue that Amsterdam Municipal Golf Course is not currently marketing to.

In order to draw women golfers to this course over other competitors, it is important to

understand the demographic and what they are looking for in a course. Below is a series

of important statistics that any golf course should be aware of when marketing to

women22:

About 6% of all women, age 18 and older in the United States are golfers.

About half of all women golfers play less than six rounds per year.

The average number of rounds per year by women golfers is about 18. Avid

women players who play 60 rounds/year skew the average to the high end.

25% of former women golfers had trouble finding someone to play with.

47% of women golfers were introduced to golf by a family member, and 23%

by a friend (compared to 22% and 31%, respectively, for men).

56% of women golfers work full-time, and 28% have kids at home.

The average age of women golfers is 45 (for men, 44).

37% of women golfers are fifty or older, compared to 32% for men.

22 Berkley Golf Consulting. Snapshot of Women Golfers – Who Are They? Available from http://www.nancyberkley.com/774894.html; accessed 25 April 2009.



The fastest growing segment of women golfers are those between the ages of

18 and 29, representing almost one-quarter of all female golfers23.

Marketing to Women Golfers

Given all of the data provided above, some suggestions on how Amsterdam

Municipal Golf Course can more effectively market to women are as follows24:

Consult with potential golfers to discuss their anticipated frequency of play.

Stress the value of the membership, but understand that some women will play

fewer than six rounds per year so the daily greens fee option may be more

economical for them.

Make them feel welcome and comfortable at the course by offering lessons

and/or clinics. Marketing lessons for women individually or in group sessions

helps build a network of new golfers.

Offer written handouts with basic information for new golfers.

Post a “Looking for a partner?” sheet in the Pro Shop.

Offer programs at varying times (daytime and after work). Advertise

programs using key words and phrases “for beginners”, “no experience

necessary”, “no pressure”, “fun”, and “meet other women.”

23 CyberGolf. Leading Indicators for Women & Junior Girls Golf. Available from http://www.cybergolf.com/golf_news/leading_indicators_for_women_junior_girls_golf; accessed 25 April 2009. 24 Berkley Golf Consulting. Women Friendly Best Practices. Available from http://www.nancyberkley.com/676303.html; accessed 25 April 2009.

http://www.cybergolf.com/golf_news/leading_indicators_for_women_junior_girls_golf



Designate off-peak times for beginners and lessons so as to avoid slowing

play on the course for avid golfers.

Employ female instructor(s).

Stock Pro Shop with a selection of women’s clothes and accessories.

Invite members and other patrons to refer women golfers to the course; offer a

referral bonus for the recruiter and a discount for a new golfer, for example:

o $25 off for new members who joined on the referral of a current member,

or

o Golf 5 times this season, get your 6th round free

Include women on important committees.

Offer a social time before or after classes or leagues.

Encourage feedback and opinions from female customers.

The most important thing to remember when trying to draw women to the golf

course is that you have to make them feel comfortable. The Amsterdam Municipal Golf

Commission acknowledged that it is difficult to recruit new members and patrons

because people have the wrong perception of the golf course. People who are not

familiar with the facility or the sport may assume that it is just a place for men to go

make business deals. It is up to the Golf Commission to encourage more of the

community to come enjoy the golf course for what it is; a city owned recreational facility.

People should be encouraged to visit not only to socialize, but to take advantage of a

heart-healthy sport that welcomes people of all ages and abilities.

III. Golf Programs for Youth


Encouraging youth to participate in sports and extracurricular activities not only

promotes good physical health, but it helps them to develop emotionally and socially.

Research has also shown a link between extracurricular activities and a number of

positive outcomes, including social adjustment, school attendance, drug resistance,

academic performance and high school completion. Golf is an optimal sport to involve

youth in because it teaches life skills and does not emphasize aggression and hostility

toward opponents like other sports often do. The culture of the sport of golf promotes

respect, self-discipline, courtesy and cooperation, social skills and self-monitoring of

behavior and play. These social and cultural attributes make golf an excellent basis for

programs which aim to teach skills that can be used in both sport and life25.

In 2001, research conducted by GOLF 20/20 confirmed the belief that early instruction in

golf leads to a greater likelihood of long-term involvement with the game. Adults who

were exposed to golf through a structured junior program play 58% more rounds and

spend 71% more money on golf than adults who were only informally exposed to the

game in their childhoods26.

One of the challenges that youths face, however is that there is a greater barrier to

entry into the sport of golf than many other sports such as soccer, basketball and baseball.

High school golf has gained tremendous popularity over the last several years, but unless

youths have been exposed to the sport at a younger age it is less likely that they will pick

up the sport in a competitive environment. As such, many golf courses are developing

structured youth organizations dedicated not only to teaching junior golfers important life

25 Ryan, P. J. & Chorost, M. (July 2002). Youth Participation in Formal Junior Golf Programs and the Potential Impact on Social Adjustment and Academic Performance. Available from http://www.golf2020.com/Reports/YouthParticipationPaper.pdf; accessed 25 April 2009. 26 Golf 20/20. Participation Reports: Examining Efforts to Grow Young Golfers. Available from http://www.golf2020.com/reports_2002YouthImpact.aspx; accessed 25 April 2009.

http://www.golf2020.com/Reports/YouthParticipationPaper.pdf

http://www.golf2020.com/reports_2002YouthImpact.aspx


lessons and skills, but by harvesting dedicated future golfers that will continue to play

their course for years to come.

The First Tee ®

An initiative of the World Golf Foundation, The First Tee ® has its mission “to

impact the lives of young people by providing learning facilities and educational

programs that promote character-development and life-enhancing values through the

game of golf.27” The organization was created in November 1997 because the primary

reason more children, especially those who were economically disadvantaged, did not

play golf was because of the lack of places that welcomed them, places they could

physically get to, and places that they could afford.

There are two options for golf courses wishing to become involved in the

program. An Access Affiliate is a green grass golf facility that allows Chapter

participants to play golf holes at a reduced cost, but no Chapter programs are delivered at

this location. By comparison, a Program Affiliate is a green grass golf facility located in

the Chapter’s service area that has agreed with the Chapter to provide delivery of the Life

Skills Experience lessons to participants and which also may provide reduced rates, free

golf, or any other benefits determined by the agreement between the Chapter and

Program Affiliate. Currently, there are no The First Tee ® programs geographically

located in New York’s Capital Region. In fact, the nearest program location is Syracuse,

New York. It does not appear that there is a lot of revenue that may be generated

immediately by becoming an affiliate of The First Tee ® program, but it would be

beneficial for Amsterdam Municipal Golf Course to consider developing a similar youth

27 The First Tee. History of The First Tee. Available from http://www.thefirsttee.org/club/scripts/view/view_insert.asp?IID=13105&NS=PUBLIC; accessed 25 April 2009.

http://www.thefirsttee.org/club/scripts/view/view_insert.asp?IID=13105&NS=PUBLIC


program. Not only would such a program draw additional revenue (via greens fees and

youth lessons) to the course, but it would help to develop life skills to the youth that

participated and cultivate future members of the course.

Structure of Youth Programs

Considering Amsterdam Municipal Golf Course is a challenging and often played

by seasoned golfers, it would not be wise to interject inexperienced players into normal

course play. Some golf courses make the mistake of trying to open up their courses to be

more family-friendly, but in the mean time end up frustrating their avid golfers by

significantly slowing the rate of play. In order to avoid that from happening, the best idea

is to structure the youth programs around the off-peak golf times for avid golfers. Since

children are not in school during the summer months, and most golfers are employed

during the weekdays, you can maximize the golf course usage by scheduling youth

summer golf day camps, lessons and leagues from late morning to early afternoon. Most

golfers in the summer arrive at the course either early in the morning to avoid the hottest

weather or late in the afternoon after work.

IV. Pricing Structure

It is imperative that the course put the proper infrastructure in place to allow for

new golfers. For example, it may be necessary to hire an instructor. Intuitively, the Pro

Shop would employ the additional employee since it is currently responsible for the

course starter and ranger. It is absolutely necessary that the golf course and the Pro Shop

work together on developing a plan that is mutually agreeable by both parties. It is

important to understand that the Pro Shop will be earning additional revenue by offering


group and individual lessons, and the golf course by drawing more members and daily

fee golfers.

Assume you hire a golf instructor (average annual salary $30,000 to $40,000) for

$16 per hour and they work 8 hours per day, 5 days a week. Their weekly wage is

approximately $640. Fees average $50 to $60 for a 30- to 45-minute private lesson.

Instructors sometimes offer hour-long sessions for $75 to $90, which is a better overall

value. There is typically no cost break for children’s lessons. Instructors typically reduce

fees by 15 percent or more if golfers buy a bundle of lessons. Golfers can buy a package

of six 30-minute lessons for about $250 ($42 per session), or six hour-long classes for

$375 ($62.50 per session). Golfers can find deep discounts from instructors or clubs that

offer group rates in conjunction with multiple-lesson discounts. A package of six

sessions for two golfers is around $450 for hour-long sessions ($37.50 per session), but

the price drops to $25 per golfer for a group of five that buys six hour-long sessions for a

total of $75028. A break-even analysis is shown below, in Table 3. As the data shows,

the break-even point is how many lessons you would have book each week (organized by

type of lesson) in order to pay the golf instructor. Any additional lesson bookings are

pure profit. As highlighted in yellow, the most efficient and profitable lessons are six 30-

minute private sessions, which also indicates that they are the most expensive hourly

rates.

Golf Instructor Break-Even Analysis Golf Instructor Cost

Hourly Wage Hours/Week Total Weekly Wage $16.00 40 $640.00

28 CostHelper.com. Golf Lessons Cost. Available from http://www.costhelper.com/cost/fitness/golf-lessons.html; accessed 26 April 2009.

http://www.costhelper.com/cost/fitness/golf-lessons.html

http://www.costhelper.com/cost/fitness/golf-lessons.html


Private Lessons Single Session (30

Minutes) Hourly Lesson Cost Break-Even Point

$55.00 11.6 Single Session (60

Minutes) Hourly Lesson Cost Break-Even Point

$80.00 8 Six 30-Minute

Sessions Hourly Lesson Cost Break-Even Point

$83.33 7.7 Six Hour-Long

Sessions Hourly Lesson Cost Break-Even Point

$62.50 10.2

Group Lessons*

Two Golfers Hourly Lesson Cost Break-Even Point $37.50 17.1

Five Golfers Hourly Lesson Cost Break-Even Point $25.00 25.6

* Six hour-long sessions Table 3

V. Play Golf America

One of the greatest weaknesses of the Amsterdam Municipal Golf Course is that it

has a poor marketing plan. In order to get new golfers to the course, it is imperative that

they develop new events and promotions. Play Golf America is the golf industry’s most

comprehensive marketing campaign. Led by the Professional Golf Association of

America (PGA), “Play Golf America” is supported by a variety of allied organizations

including the Ladies PGA, Golf 20/20, the National Golf Course Owners Association

(NGCOA), and the United State Golf Association (USGA). A multi-million dollar

national marketing campaign has been launched and includes advertisements on national

TV and radio during PGA, LPGA, USGA, PGA Tour and Champions Tour events, as

well as web advertising29. All marketing elements are intended to drive consumers to this

29 PlayGolfAmerica.com. Become a Play Golf America Host Facility. Available from http://www.playgolfamerica.com/index.cfm?action=hostfacility; accessed 25 April 2009.

http://www.playgolfamerica.com/index.cfm?action=hostfacility


national Web site, www.playgolfamerica.com, which serves as the umbrella for player

development programs geared to new, former and occasional adult golfers.

Courses may choose to become a host facility of Play Golf America, and receive

the following benefits:

Their own facility web page on the Play Golf America national website to

promote adult player development programs to the general public and/or

membership

Access to program templates, guidelines and best practices for a variety of

player development programs

Downloadable promotional materials and forms designed to market these

programs

The ability to host and track consumer information, and measure participation

in the facility’s programs and events. Resulting information can be used

exclusively by facility management for future marketing opportunities including

direct e-mail campaigns

Access to the Play Golf America Resource Center including best practices,

program features, and online training message boards.

Some highlights of the website include general information about the sport of

golf, a course locator, rules & etiquette, golf fitness, golf equipment and golf instruction.

Golf courses can also register to become a host facility for a number of different

nationwide promotions, including the following:

American Express Women’s Golf Month (June 1 – June 30, 2009)

Family Golf Month (July 1 – July 31, 2009)


Bring Your Kids to the Golf Range Program (July 1 – 31, 2009)

Take Your Daughter to the Course Week (July 6 – 12, 2009)

Patriot Golf Day (September 4 – 7, 2009)

Get Golf Ready in 5 Days

PGA Play Golf America Days

By getting involved in becoming a host facility, Amsterdam Municipal Golf

Course can open itself up to a whole new network of golfers who may be looking to

become involved in nationally established programs. Often times, people are interested

in special events such as the ones listed above because of the perks they offer, that you

are not able to find during the regular golf season. For example, a new female golfer may

choose to get involved in the sport at a facility that is hosting the American Express

Women’s Golf Month in order to take advantage of perks such as free golf lessons and

clinics, networking receptions, golf rules and etiquette seminars, fashion shows, on-

course golf instruction, and luncheons.

VI. Summary

It is not necessary to spend exorbitant amounts of money to market your golf

course in an attempt to draw in new golfers. However, it is necessary that the golf course

is willing to set up the infrastructure in order to be able to handle attract and retain

potential new members. There is a tremendous amount of opportunity for Amsterdam

Municipal Golf Course, but it is essential that they communicate with and market to the

city residents. Golf today is no longer about sealing business deals, it is about staying

healthy, learning and honing new skills, meeting new people, and staying active.


Appendix S – Communications Research I. Introduction

Communication, internally between departments and externally with key

stakeholders, is an essential component of any successful business. When such

communication is lacking, there may be discrepancies about how the business is

performing or how customers perceive the business.

At the Amsterdam Municipal Golf Course, there are several opportunities for

improved communication both internally and externally that require very little capital

investment. Internally, the use of a Point of Sale (POS) system and increased

transparency in financial reporting would both enable course management to make sound

business decisions for the course and thoroughly understand its performance. Externally,

improving communication with customers and key stakeholders could be improved

through the course’s website design and telephone operations. Coinciding with any

improvement in communications, the operational structure of the course must be changed

to ensure that someone has responsibility for such communications. If nobody is

responsible for communications going forward, then any change made in communication

strategy will not be sustainable

II. Internal

Point of Sale System

Critical to the operational success of Amsterdam Municipal golf course is an

understanding of operational capacity, customer buying habits, and trends at the Course.

Operational efficiency is contingent on data accuracy and baseline metrics, which could


be determined with the use of a point-of-sale (POS) system. SPS Golf Management

Solutions (SPS) provides a web-based POS system that will help to streamline tee time

reservations, track buying habits and employee activity, and obtain information regarding

registered consumers.

The Course currently lacks a sufficient POS system. All reservations and

transactions are ultimately kept track of manually without the use of an electronic system.

This allows for discrepancies between reported activity and actual activity. This also

makes it very difficult to obtain any accurate information regarding customer buying

habits or course operations. The use of SPS’s software package will help to keep track of

activity so that these metrics may be used to establish baseline metrics and project future

operational needs.

The POS system offered by SPS, outlined in Appendix 1, will be effective in

tracking the Course’s operations. Part of the POS system focuses on the ability of the

customer to reserve tee times online in real time. This streamlines tee time reservations

because the customer no longer needs to speak with the cashier in order to sign up for a

tee time. Additionally, reservations could also be made outside of regular operational

hours. This aspect of the POS system makes the experience of registering for a tee time

more streamlined and user friendly.

In order to use the POS system, golfers must register for its use, providing

personal information such as address and date of birth in exchange for a username and

password that can then be used to reserve tee times. This allows the Course to store this

information and use it to establish its customer base demographic, which is very useful

when determining how to cater to customer needs or market the course. Obtaining this


information also allows the Course to use this information for direct marketing

campaigns. It could share information regarding the Course with members and daily fee

golfers and keep these customers coming back to play additional rounds of golf.

In addition to tracking customer behavior, the POS system could be used to track

employee productivity and establish controls over tee time reservations. This feature

would enable Course management to make sure the cashier is productive and not giving

preferential treatment to any particular customer, ensuring that the Course will maintain a

positive image for both members and daily fee players alike.

While the Course currently lacks a sufficient POS system, the one purchased from

SPS will be suitable for operations, as well as cost-effective. The Course paid a one-time

fee of $1,500 for the software, and must pay a maintenance fee of $119 in months of

operation. In addition, the Course had to purchase a computer, receipt printer, internet

connection, and Microsoft Office in order to operate the equipment. Also, Course

employees responsibility for operating the software must receive 2 days of online training

before “go-live.” While this cost is not insignificant, the benefits provided by the

software far outweigh the costs. Once this POS system is implemented, the Course will

be able to obtain sufficient metrics to help plan and streamline its operations.

In order to make a decision on which POS system to implement for the course, it

hired a technology consultant to advise the course on how to choose a system. After

reviewing alternatives, they suggested the SPS system over competitors. An alternative

to the SPS POS system, offered by Golf Masters Software (GMS) and outlined in

Appendix 2, does not offer a comprehensive, internet based service as SPS does. SPS’s

service includes membership tracking, inventory tracking, and tee time management,


services that cost extra through GMS. Also, the ability for a customer to log-on to the

Amsterdam Municipal Golf Course website to schedule and pay for their tee times is

something that GMS does not offer. Other competitor systems, such as the one offered

by Active Golf, also do not offer such a comprehensive system and charge extra for

including a tee time reservation system. Clearly, for Amsterdam Municipal’s purposes,

the SPS system is superior to its competitor.

Alternative to purchasing its own POS system, the course had the option to

integrate the POS system used by the concessionaire, Pro Shop Keeper, into course

operations. Unlike GMS or Active Golf, Pro Shop Keeper does offer an integrated

service as part of its POS system. However, integrating this system into course

operations would be cost prohibitive at $10,000, especially when compared to the $2,000

SPS system.

The POS system, once implemented, will prove to be an extremely useful tool for

the course. It will allow the course to better communicate its performance from year to

year to its stakeholders and allow it the opportunity to communicate results to the city

government and other stakeholders. The customer database management system

associated with SPS’s product also will prove to be useful in communicating changes,

promotions, and news regarding the course with its members and daily fee players. In

addition to improving communication, the POS system will be useful in making

projections for future performance. The course currently does not know how many

rounds of golf are played, how many daily fee players play the course, or its customer

demographic.


SPS’s POS system will provide the data necessary to improve such operations,

but ultimately, someone must be responsible for managing it. This program’s

functionality is only useful if it is used to its full potential, and it can only be used to its

full potential if someone is held responsible for doing so. Managing the data provided by

the POS system will allow the course to better understand its operations going forward.

Financial Reporting

As a municipal entity, the course’s profits and losses are contribute to or draw

from its fund, managed by the city government. However, the course’s records are

maintained by hand, not electronically. In addition, there is little communication

between the comptroller’s office and the course’s management team. These factors

contribute to a lack of financial transparency in the course’s financial reporting.

Currently, everything at the Amsterdam Municipal Golf Course is managed

through a traditional pen-and-paper system. There is no technology monitoring employee

actions and there is no true way for course management to understand fully the course’s

performance. The implementation of the POS system, as described in the previous

section, will help to contribute to a better understanding of the course’s operations.

Specifically, it will help the course to determine where its revenues are coming from.

Coupling the POS technology with financial reporting software, such as QuickBooks, to

track and manage expenses, will allow the course to communicate performance with

more certainty, reducing the opportunity for fraud or theft. It will also save the time

necessary to manually record operational revenues and expenses. According to the

QuickBooks website, 70% of users saved 3 or more hours per week of manual work as a


result of implementing QuickBooks.30 Therefore, implementing this software will

increase productivity, report accurate finances, and better control the flow of funds in and

out of the course’s fund.

In communicating finances for the course, there must be more communication

with the city comptroller. The course does not receive regular updates as to the balance

available in its fund. In preparing the financial section of a business plan, the course has

not received comprehensive financial information from the comptroller’s office and the

information that has been received has not been received in a timely fashion. In addition,

the comptroller’s office is not readily available for questions or concerns regarding the

course’s financial status. Such lack of communication, especially regarding financial

information, is cause for concern on behalf of the course. However, the comptroller’s

office receiving hand-written reports on revenues and expenses from the course is cause

for concern on their behalf as well. Implementing an automated record keeping system to

report information to the comptroller’s office, coupled with routine, timely

communication from the comptroller’s office to the course, would help to alleviate these

concerns, help ensure the accuracy of the financial statements of the course, and help the

Golf Commission better manage the course’s operations.

III. External

Website

The course’s web site in its current state, while not completely ineffective, does

not measure up to that of other municipal courses. The home page, a screenshot of which

30 Quickbooks. http://quickbooks.intuit.com/qb/products/common/direct_download/email.jsp?scid=qbkm_ssfe_hero2_getfree&skuId=sku0000000000006360736. 2009.


can be seen in Appendix 3, is not particularly customized for the course. It does a very

good job of describing the course, including the course’s layout, tips for playing the

course, and the view of the Mohawk Valley from the clubhouse. However, the website

does not have a great deal of functionality. It is informative, but you cannot accomplish

anything by only going to the website.

In its redesign under the control of the city of Amsterdam, the cost of maintaining

the website will remain constant at $30 per month. While incorporating the course’s

website into the city government’s website may benefit the city of Amsterdam, it is

important for the course to maintain a level of customization with the website. If the

course’s site is too similar to that of the government site, it will continue to lack

functionality.

Currently, as can be seen in Appendix 3, the website looks very generic. There

are no photos of the course or any logo on any of the pages. The current site

communicates the following to visitors:

• Rates – This includes membership and daily fee rates, as well as cart storage and

locker rental fees.

• Contact Information – This lists the phone numbers for the clubhouse, pro shop,

and for tee times.

• Course Layout – This shows a graphic of the layout for each hole of the course

and includes tips for each hole.

• News – This is used to communicate information about the course, such as the

opening date.


• Survey Question – This is used to gather feedback, currently regarding the

possibility of an amateur tournament being held at the course.

A redesign of the site should still incorporate these elements, but should also

include other features commonly found at other municipal golf course websites,

including:

• Weather Information – Because golf is so heavily dependent on weather, this

information would be helpful to entice a visitor to the site to reserve a tee time

based on the weather forecast.

• A Calendar of Events – Including a calendar of events would help to inform

visitors of tournaments, leagues, or other events held at the course. Additionally,

it could be used to inform potential golfers of closure dates for when the course is

reserved for a private outing, reducing the grief one may experience by traveling

to the course only to find that it is closed.

• Tee Time Reservations – This will be made possible due to the integration of the

web-based POS system. This will allow golfers to reserve their tee time without

going through the hassle of calling the course.

• Driving Directions – The course’s location may be well know to the people of

Amsterdam, but if it hopes to draw golfers from elsewhere in the capital region, it

ought to include specific directions on how to find the course.

• Promotional Information – If the course chooses to run a promotion,

communicating it through the website. In addition, using web specials would

force navigation to the site, increasing traffic and increasing the number of rounds

of golf played at the course.


• Course Rules – Golfers must be informed of the rules of the course prior to

visiting. Open communication of these rules will help to ensure that they are

followed and the desired atmosphere at the course is maintained.

• E-Mail Club – Allowing visitors to sign up for an e-mail club will allow the

course to maintain consistent communication with potential customers regarding

promotions, events, or course improvements.

• Scorecard – A scorecard accompanying the course layout would be useful in

determining the difficulty level of any given hole. This may be useful for those

wishing to plan a wager.

• Links – Including links to any golf associations the course belongs to would be

helpful in legitimizing the course as a quality place to play.

• History - As a Robert Trent Jones design, the course has seen its fair share of

history throughout the years. Illustrating this history online would be an

appealing marketing tool.

Further, the course should consider the following changes to existing components

of the website:

• Rates – Include a link to reserve a tee time.

• Contact Information – Include or establish an e-mail address for the course. A

visitor to the website is likely to prefer electronic communications to speaking on

the phone.

• Course Layout – Include pictures of the hole from the tee box. Allow the

potential golfer to picture himself at the tee. Also, incorporating an aerial view of


the course into this feature would be useful for the golfer to get a better

understanding of course layout than he could from a graphic representation.

• News – Use this section to communicate special events or changes to the course.

One news item currently on the website dispels a rumor of increasing prices.

Communicating changes regularly with customers will decrease the amount of

rumors circulating regarding the course and its policies.

• Survey Question – This is a highly useful tool, but the question should rotate so

that it is gathering information about multiple topics. Using questions from the

survey outlined in the business plan is a good starting point.

The website must be more customized to help attract golfers to the course. For

example, the home page of the course describes the view of the Mohawk Valley that can

be seen from the clubhouse.31 Including a photo of this view on the home page would be

useful in marketing the aesthetic appeal of the course.

After the redesign is complete, it will be important that users are able to access the

site quickly and easily. The current web address of www.amsterdammuni.com is

intuitive and will easily be remembered by golfers and site visitors alike. In addition,

searching for the course on popular search engines also makes it easy to find the course

website. It is important that potential customers can easily remember or easily find the

web address to keep them coming back. Registering the new website under the city

government may eliminate the ability of a potential customer to remember the web

address, unless the page can still be accessed via www.amsterdammuni.com. If the web

address is, for example, www.amsterdam.gov/recreation/golf/amsterdammunicipal.html,

it will be very difficult for a potential site visitor to remember this web address and will 31 Amsterdam Municipal Golf Course. http://www.amsterdammuni.com/. 2009.


decrease traffic to the site. Upon the implementation of the online POS system, this will

result in a direct decrease in revenues, as potential customers will no longer be able to

quickly and easily reserve and pay for tee times.

Municipal courses elsewhere in the country typically operate a website

independent from their local government. Those that are operated under a government

website, as Amsterdam Municipal will be, have been more successful when there are

multiple golf courses incorporated under the government website, as Albuquerque

(Appendix 4) and Houston (Appendix 5) have done. However, Amsterdam has only one

municipal golf course. It should be given the opportunity to manage it with relative

independence. If the course is not given the opportunity to customize the website, it will

not be a useful tool for promoting the course, communicating with customers, and

scheduling tee times.

Ultimately, an individual must be responsible for website maintenance. If a

website is not consistently updated, it will become obsolete quickly. Assigning someone

to be responsible for website communications will be important to the success of the site

and of the course. If nobody is responsible for its operations, it will not be a useful tool

for the course in its operations and marketing efforts.

Telephone

Currently, if someone wants to call the course, they must call during hours of

operation or they will receive no information about the course. There is no answering

machine for a potential customer to leave a message and there is no recording informing


the customer of an alternate method of contacting someone at the course. This could

directly lead to lost revenue.

Letting the phone ring incessantly while a customer awaits a response leaves a

negative impression with that customer. By allowing the customer to reach a recording

informing them of either another method of contacting the necessary party or informing

them when they can call back, the customer will get the impression that the course cares

about that customer’s business. In its current form, a customer calls, nobody answers,

and that customer gets the impression that the course could not care less about attracting

his business. The course will result in a lost customer.

Not having an automatic greeting when the course is closed directly results in

decreased revenue. In an effort to boost revenue, it is in the course’s best interest to

schedule corporate outings and other events during which the course is reserved.

However, when nobody at the can be contacted in the offseason, that company or

individual cannot reserve the course. This potential customer is likely to look elsewhere

to book their outing. However, an automatic message informing the potential customer

of an alternate method of contact, such as a monitored e-mail inbox or a message on an

answering machine may help to secure this business for the course.

IV. Conclusion

The course is in need of capital improvements to the cart paths and drainage

systems. Communicating these improvements will be important to the success of the

course going forward. Establishing a strong communications system prior to completing


these projects is vital to ensuring that these projects achieve the maximum payoff

possible for the course.

The communications system, including the POS system, financial reporting, the

website, and telephone operations, must be improved in order to achieve successful

communication. However, the success of these individual communications projects

depends on the ability of management to delegate responsibility and establish a system in

which all are held accountable for the performance of what they are managing.

Establishing a management system in which responsibility and accountability are

paramount to the success of the projects outlined above

Managing communications contributes to the operational, financial, and

marketing success of the course. Managing the communications projects outlined in

Sections II and III will be vital to the success of the course as it moves forward with

substantial capital projects that will help to shape the course’s reputation in the future.

Communicating these changes will allow the course to achieve the maximum payoff

possible on these projects and increase the number of rounds played each year at the

course.


Appendix 1 – Outline of SPS Golf Management’s POS System














• Rain Check processing is tracked from tee sheet and verified at POS station.





Source: SPS Golf Management Solutions, Inc. http://www.golfgopher.com/B2B/POS.asp.

http://www.golfgopher.com/B2B/POS.asp


Appendix 2 – Outline of Golf Masters Software’s POS System

Golf Course Management Software Tools

Pro Shop Point of Sale Touch-screen technology with easy cash register setups. All Pro Shop activity is recorded and monitored including course, cart, and merchandise transactions. Marketing tools such as gift cards, prize money, and customer contacts are included. The POS system interfaces with the Inventory and Membership modules and provides the quickest and most efficient check-in. Membership A database of customer information, the Membership module tracks personal, financial, and historical data including account balances and prize monies. The system provides easy screen searches and reporting. Picture ID's assure security and offer various opportunities for maximizing sales.

Inventory A complete system of orders, receipts, sales, costs, pricing, and contacts. The GMS Inventory interacts with Point of Sale for detailed purchasing histories and activity. Use manufacturers bar coding or print your own.

Reporting GMS uses Crystal Reporting to provide the best information from all data sources. In addition, GMS provides custom reporting for end-of-day closes. Training includes how to create and modify reports.

Accounting GMS can provide full featured packages of AP, AR, and GL or can provide uploads of information to products such as QuickBooks or other accounting systems. But even the basic GMS system of POS and Inventory provides for reporting transactions by GL number.

Tee Times The system provides single or multi-course tee times. First tee time/last tee time, tee time interval, players per tee time, days in advance, days in history and number of courses are all configurable settings.

Tournaments GMS provides a complete tournament package including pairings and scoring for most types of events. The module prints cart signs, score cards, registration lists, and scoreboard, and saves tournament information for same repeat tournament or use in other tournaments.


Handicaps USGA certified handicap system including historical data and handicap cards. System can be updated by players or staff.

Food Service This GMS module features POS touch screen technology with tracking by server and time. The system interfaces with the Membership module. Modifications to screen and menu items is extremely user friendly.

Maintenance (Coming) This module includes scheduling for equipment and course maintenance. Informational data fields track work performed for historical comparisons and expenditures. The system includes alerts and reminders.


Appendix 3 – AmsterdamMuni.com


Appendix 4 – Albuquerque Municipal Golf Website


Appendix 5 – Houston Municipal Golf Course Website


Appendix T – Driving Range Research Introduction

Amsterdam Municipal golf course currently has a practice driving range available

to their customers, however it lacks necessary amenities such as range balls for use and

ample space to practice with use of the full range of club distances required to fully

utilize as a viable revenue stream as an open to the public range. The range is currently

used by the Golf Pro to help support lessons and local school team programs, as well as

members, on a limited basis, with use of their own shag balls. An opportunity exists for

expansion of the driving range to help generate additional stand-alone revenues as well as

the potential to increase revenue streams of the Golf Pro and Concessionaire. In addition,

an expansion of the golf range will help support instruction for women’s and youth

programs, which will strengthen long term success of golf operations by generating new

customer loyalty to Amsterdam Municipal Golf Course. The following research will

review the potential market opportunity; discuss the advantages, risks, local competition,

and viability of this expansion project. Further, marketing ideas, expenses and potential

revenues will be approximated such that sound decisions or recommendations can be

made to move forward on this project.

Market

An open to the public driving range facility at the Amsterdam Municipal Golf

Course may expect to draw most of its customers from a 15-mile radius. According to

the 2000 census data, demographics within this 15-mile radius total approximately

102,915 people, which includes Amsterdam, Johnstown and several other smaller


skets per year.

municipalities.32 This will be considered the target market for the driving range addition

as golfers and non-golfers alike visit driving ranges across the country.

Opportunity

According to the National Golf Foundation, it has been estimated national driving

range participation is approximately 12.5%, meaning 12.5% of the US population used

some type of commercial golf range in the preceding year.33 In addition, an average of

5.4 commercial range visits per golfer per year was estimated based on a survey

completed by the NGF.34 Given the above demographics within the target market and

the assumption that the target market is representative of the US population, potential

driving range visits per year is calculated to be 69,478 for the entire market. It is also

estimated that range visitors on average demand 1.25 baskets for each visit, which

calculates a total basket demand of 86,848 ba

Factors for success

Understanding the factors that correlate into successfully tapping into this market

opportunity is critical to profitability. Location is one of the most critical factors to help

the recuperation of investment into the driving range. Research suggests that 85% of

ranges in North America make poor returns, 15% of ranges make great returns. The

difference is the location.35 While the market has the potential to generate considerable

revenues, the location of Amsterdam Municipal Golf Course may be less than ideal for

32 US Census Data. 2000. 33 “Golf Practice Facilities in the US- A Summary of Supply and Demand”, www.NGF.com, 2005 34 “Golf Practice Facilities in the US- A Summary of Supply and Demand”, www.NGF.com, 2005 35 www.golf-research-group.com/reports/report/index.asp?id=4

http://www.ngf.com/

http://www.ngf.com/

http://www.golf-research-group.com/reports/report/index.asp?id=4


drawing upon this market. Located of Route 30, it might seem difficult for the course

and subsequent driving range operation to draw many customers based on location alone,

as it is not visible from one of the more traveled roads in Amsterdam, therefore, a

considerable marketing strategy must be employed, which will be discussed further.

Another key to success is operational efficiency. Leveraging current operations at

the golf course will help the driving range be very efficient and keep operational

expenses low, as the grounds are already maintained by current operation. In addition,

the cashier can be used to handle the purchase of tokens for ball baskets and possibly the

maintenance crew or Assistant Pro can be used to pick up balls and wash balls though the

day.

Lighting for the driving range addition may be critical to increasing revenues in

this relatively short season of 152 days (April 1 – Sept 30). Research has shown that the

addition of lights can increase revenues by 30-40%.36 Lighting may allow for

approximately 3-hour extension of the 12 hours a day operation and add to the

community leisure activities to the city of Amsterdam.

Marketing Strategy

Given the current location and need to get the communication out on the potentially new

expansion project, it is necessary to employ a good marketing strategy. A few options

will be proposed below.

• Television advertising spots can be purchased on the Golf Channel and ESPN 2 in

conjunction with the golf operations to include the new golf range, which will

focus on family atmosphere and golf instruction. These spots will highlight the

36 http://www.golf-research-group.com/reports/report/index.asp?id=4



new operations and can speak of youth and women’s programs discussed below,

such that packages of instruction can be offered which include range and course

instruction during slow course times, to lower the pressure barriers to customers

new to golf.

• Local businesses should also be targeted by offering packages of a bucket of

range balls and lunch, such that customers can experience the range during slower

times during the day. This will help spread the word around businesses and open

up conversations with patrons on a potential outing scheduled or leagues for the

golf course as well.

• A larger sign should to be posted that can be seen by both directions on Route 30

to highlight both the golf facility and new range. This will allow better visibility

to commuters on one of the busier roads in Amsterdam.

• Coupons for a free bucket of balls can be offered in the local newspaper with the

purchase of an equal size bucket. This will get a good value proposition out to

potential customers to visit the facility and bring a friend.

• A free large basket can be given to current golf club members for brining friends

or partners to the golf range as current membership may be the best opportunity to

get low cost advertising by word of mouth.

Advantages

There are many reasons for support of a driving range at Amsterdam Municipal.

The first of which is an additional stand-alone revenue source as will be explored.

Further, it will help the support the golf programs recommended for women and youth


golfers, which in turn may help foster long term success of all golf operations and

develop lifetime golfers at Amsterdam Municipal.

Womens programs

According to the National Golf Foundation, approximately 23% (5.5 million of

23.9 million total) of all golfers in the United States are adult women.37 This represents a

large market for growth at Amsterdam Municipal, as currently only approximately 12%

of the memberships at Amsterdam Municipal are women. Adding the driving range will

help support instruction, tap into this market and allow for the creation of a wider variety

of programs designed to ease the entry and development of this high-potential target

group.

Instructional programs to start on the golf range will relieve the pressure of

performance and allow necessary speed of play on the golf course. In addition, tailoring

instructional programs for women will make them feel comfortable on the course and

could include instruction to make golf more fun and inviting with a user-friendly, non-

intimidating environment. This would include basic instruction on use of the clubs and

the swing, but most importantly it should encompass strategy, course management, short

game, and other important aspects of playing that a golfer must learn to become a

genuinely committed player. In addition, women’s group lessons can be offered to

increase the social involvement of women, help foster relationships and build long lasting

golfing partners at Amsterdam Municipal.

37 Berkley Golf Consulting. Statistics About Women and Girl Golfers. http://www.nancyberklet.com/771810.html

http://www.nancyberklet.com/771810.html


The driving range will become a strong partner for the golf course and will help

increase course utilization as slow times on the course can be better understood through

use of the POS system. Slower times on the course can be used for instruction packages,

that would include time on the driving range with 9-holes of golf. The Golf Pro will be

able to evaluate skill levels and the more skilled golfers that are ready to bring the

instruction to real scenarios on the course.

Youth Programs

According to research conducted by GOLF 20/20, early instruction in golf leads

to a greater likelihood of long-term involvement with the game, as adults who were

exposed to golf through a structured junior program play 58% more rounds and spend

71% on golf than adults who were only informally exposed to the game in their

childhoods.38

Taping into the youth market is critical to growing life long golfers for long-term

success at Amsterdam Municipal. A driving range addition will help ensure golf is

offered to youths in an instructional format that will be all encompassing and free from

speed of play pressure of the golf course as well.

First Tee® programs can be offered at Amsterdam Municipal Golf Course with

instruction and life skills experience lessons to participants that promote character

development and life enhancing values though golf. These lessons can begin on the

driving range and again move to the golf course during slower times, typically early

afternoon where most golfers avoid due to the hottest of weather conditions. First Tee

38 Golf 20/20. Participation Reports: Examining Efforts to Grow Young Golfers. http://www.golf2020.com/reports_2002YouthImpact.aspx;

http://www.golf2020.com/reports_2002YouthImpact.aspx


Programs will offer lower cost golf and instruction to otherwise less fortunate youth in

the Amsterdam region as golf typically has a higher barrier to entry with the cost for

clubs and greens fees. However, dedicating to the youth of Amsterdam will generate

future value for the course by developing future loyal customers.

The driving range and golf course can also offer youth camps to encourage

participation in sports and extracurricular activities. Camps can include Golf range

instruction and package with 9-holes of golf during slower times on the course, as well.

This offers many benefits to the community as well as the golf operations, as youth

involvement can build life skills and focus children that may otherwise have found less

desirable outlets to fill their time.

Operational Overview Location

The practice range at Amsterdam Municipal as it is currently is shown in Diagram

1 outlined in red. As shown, it is approximately 185 yards long and 50 yards wide. In

the current state it can allow for approximately 17 stations of about 8.5 ft wide, however

185 yards is not long enough for golfers to utilize all clubs for longer distances and range

balls are not offered. The highlighted area in yellow shows the expansion. This will

open up additional stations to 25, or 75 yards, and lengthen approximately 70 yards to

250 yards. This expansion would allow for use of the full range of clubs for most golfers.

However, it would cut into Hole 1 on the right side of the course and force it to shorten

by approximately 60 yards from 380 to 320 yards. This would still allow for the hole to

remain a par 4, but represents a potential issue to the challenge of this hole by making it

shorter.


Proposed hole 1

Current hole 1

Diagram 1: Location of driving range(red=current; Yellow=proposed) Extending the driving range and opening to the public will require the use of netting to be

erected around the range area for the protection of golfers playing the course. The netting

will be approximately 50 feet high and surround the range area. In addition, removal of

trees in the way of range shots will be required.

Operations

The range, as noted will have 25 stations each will be 8.5 feet wide. Each patron will see

the cashier to obtain tokens for use with the ball dispenser. Tokens will be inserted into

the ball dispenser and dispensed in 30 ball increments. For example, one token will be

inserted for the purchase of a small bucket and 30 balls will be dispensed, similarly, 60

balls for 2 tokens(med) and 90 balls for 3 tokens(lg). This will allow for one token type

to be used and one ball basket size(lg) to be purchased by the golf range, as the purchased


basket will house all increments of balls. Patrons will hit balls on the range and leave

empty baskets for retrieval by the golf range cashier or attendant when baskets are

running low. The ball dispenser will have the capacity to hold 10,000 balls, which will

allow for 333, 167, 111, small, medium and large bucket respectively. At the projected

rate of utilization, which will be explored in the section below, this will likely require the

ball dispenser to be filled only once per day. Similarly, the range will have to be cleared

of balls only once per day, with use of the ball picker. At the end of the day, balls will be

picked up and loaded into the ball washer, then loaded into the dispenser for use the

following day. Top-level customer flow process is shown in Diagram 2 below as well as

needed support functions for personnel shown in Diagram 3.

Ball Dispenser Cashier Range

•1 Token = 4.00 •2 Token = 6.00 •3 Token = 8.00

•1 Token = 30 balls •2 Token = 60 balls •3 Token = 90 balls

•Average range time per patron 1 hour

Diagram 2: Customer flow Pick up

Baskets

•

Store @ BallDis penser

As needed

Pick up Fill dis Wash balls penser

•At closing

Diagram 3: Top level support functions


Capacity/Utilization

Given the layout of the range, 25 stations can be built at Amsterdam Municipal

Golf Range. According to the National Golf Foundation usage rates, the average

capacity of 1 bucket an hour per station is used.39 Therefore, using number of stations

and a 12-hour a day operating time, capacity is shown below in Table 1. Included in the

table are various yearly utilization rates for number of days open of 152(May1-Sept30).

The table does not include pricing, which will be discussed in the pricing section.

# of

Stations 25 25 25 25 25 25 25 25 25 25tilization % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%alc Utilzation* 25.00 22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50uckets/Hour 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0vg # Hours/Day 12 12 12 12 12 12 12 12 12 12

uckets/Day 300 270 240 210 180 150 120 90 60 30ays open 152 152 152 152 152 152 152 152 152 152

alls per day 18000 16200 14400 12600 10800 9000 7200 5400 3600 1800uckets/Year 45600 41040 36480 31920 27360 22800 18240 13680 9120 4560

UCBA# B# DB# B

Table 1: Utilization rates assuming open 152 days * indicates # stations fully utilized all day every day

Highlighted in dark yellow is the total capacity of 45,600 buckets a year, which calculates

to roughly 53% of the available market calculated above for the range. The light yellow

columns are likely projected ranges of capacity for the golf range given new to the

market, and is in line with the estimated average national utilization at golf ranges by the

National Golf Foundation.40 Extending the season will clearly effect capacity, however

only in-season times were used to calculate capacity such that Current Golf course

resources can be used.

39 “Golf Practice Facilities in the US- A Summary of Supply and Demand”, www.NGF.com, 2005 40 “Golf Practice Facilities in the US- A Summary of Supply and Demand”, www.NGF.com, 2005

http://www.ngf.com/

http://www.ngf.com/


Pricing

According to a survey conducted by Golf Research Group of every stand-alone

golf range in the United States, average cost to charge per ball for the first bucket is 9.9

cents.41 Graph 1 indicated the ranges of price per ball indicated nationally. Therefore it

is recommended to charge $0.10 cents per ball and offer 3 sizes of buckets as shown

above at 30, 60, and 90 balls. Subsequent cost per bucket would be $3.00, $6.00 and

$9.00 respectively. However, an incentive to purchase larger buckets should be

employed thus pricing per bucket should be $4.00, $6.00 and $8.00, which will keep the

average price per bucket at $6.00.

Graph 1: National cents per ball analysis

41 http://www.golf-research-group.com/reports/report/index.asp?id=4



Pl eFox Run CCH s Mills CR ng Hills at Antlers Fort Johnson 5.5mi N NA NA NA 0 N NA NAT-TimeSt ium GC Schenectady 23.5mi Y 5.5 60 0.09 30 N Not incl Not inclG orld Saratog Springs 25mi Y 7 70 0.10 18 N Not Incl Not InclAmsterdam Muni Amsterdam 0mi Y 6 60 0.10 25

CLOSED

Competition Analysis

The Amsterdam Municipal golf range would face limited competition, as an

evaluation of competition was completed and is shown below in Table 2. Within the15

mile radius target market only Fox Run Country Club and Hales Mills CC have a driving

range. Each has 15 stations and costs are in line with the proposed ball costs at

Amsterdam Municipal. It is noted that no range on the below list had lights and each

operates until roughly dark(~7:00PM). Using 20% utilization rates and the same usage

parameters as shown for Amsterdam Municipal above the Market cap was calculated for

both Fox Run and Hales Mills. This shows of the 86,848 basket market opportunity

calculated, approximately 12.6% may already be served by this competition. This leaves

87.4 or about 76,000 baskets left in the market, which is more than ample and far exceeds

the 45,600 total capacity.

ac

aleolli

adolf W

Table 2: Competition evaluation

Location DistanceDriving Range

Avg Bucket price

AVG # BALLS

Avg Cents per ball

# of Stations Lights

Market cap #

Market cap %

Johnstown 8mi Y 5.6 43 0.13 15 N 5472 6.30%C Johnstown 12mi Y 5.00 53 0.09 15 N 5472 6.30%

Stadium Golf Course range and Golf World range were included above to evaluate

pricing, but not included in the market calculation shown as they are outside the target

market and therefore were not considered competition. In addition, it was noted that T-

Time used to be a driving range off Route 30, but had closed down. No information

could be found as to the reason. Further research should be done to find out reasons for

failure such that these risks can be mitigated.


Financial Overview

An estimate of start up costs was completed to identify the approximate

investment needed, this is shown in the Table 3 below. These costs include all of the

equipment needed to open and operate a golf range, but do not include equipment costs

for grounds care as these are sunk costs already incurred by the golf course, but can be

used to maintain the golf range. It is noted that lighting was included in the below cost,

however further analysis may need to be done to evaluate the lighting option. It was

noted that lighting would increase revenues by 30-40% and extend operating time during

the day, however operation costs such as utilities may out weight benefits. Also included

below was use of mats to hit from as an option for patrons. The use of mats could be

rotated through positions in the tee area to help lower maintenance costs of the tee off

area with wear and tear divots.

Cost Quantity Ext CostNetting installation (turnkey)* 90,000.00$ Lights( turnkey)* 40,000.00$ Ball dispencer 10,000 balls** 3800 1 3,800.00$ Ball washer** 1200 1 1,200.00$ 300 tokens** 0.35 300 105.00$ 90-100 capacity basket ** 7.7 50 385.00$ Ball picker use with cart 1000balls(6ft)** 1695 1 1,695.00$ 3" rubber tees for mats** 0.65 30 19.50$ 10 mats for (195 each) 58x58" 5ft sq** 1950 1 1,950.00$ Golf cart cover(safety)** 150 1 150.00$ Range signs 50 each(need 14)** 50 14 700.00$ Balls $90 for 600 ea(50 doz=9600balls)** 90 16 1,440.00$

Total startup costs 141,444.50$

Table 3: Start up costs *Quote from TEX-NET www.texnetusa.com

**Quote from www.rangemaster.net Revenues/Payback

Expected revenues were calculated at utilization rates of 10% and 20% and shown

below in Table 4, which include average pricing of $6.00 per bucket. Also included were

http://www.texnetusa.com/

http://www.rangemaster.net/


the projections associating the increased sales of Golf Merchandise and Concessions

sales, as well as projected lessons revenues. According to the National Golf Foundation,

a conservative estimation of increases to merchandise and concessions were noted of

$0.50 and $1.00 per customer as shown.42 These revenues may not be directly taken in by

the Golf course, but could be used for negotiation of potential revenues, during a new

contract, which may offset salaries given to the Golf Pro and or increase the bid price of

the concessionaires contract, and were therefore included in these estimated projections.

Utilization 10% 20%Buckets/ year 4560 9120Avg Price/Bucket 6.00$ 6.00$ Total Golf Ball Sales 27,360.00$ 54,720.00$

Golf range Customers 4560 9120Per capita spending 0.50$ 0.50$ Est Merchandise sales 2,280.00$ 4,560.00$ Less Cost Merchandise(65%) 1,482.00$ 2,964.00$ Net Merchandise sales 798.00$ 1,596.00$

Golf range Customers 4560 9120Per capita spending(concessions) 1.00$ 1.00$ Est Concession sales 4,560.00$ 9,120.00$ Less Cost Concessions(50%) 2,280.00$ 4,560.00$ Net Concession sales 2,280.00$ 4,560.00$

Avg Price/ lesson 40.00$ 41.00$ Lessons/day 1 2Gross lessons/yr 6,080.00$ 12,464.00$

Total revenue projection yr 1 36,518.00$ 73,340.00$

Table 3: Revenue projections Ranges of revenues of $36,518 and $73,343 were calculated, which are conservative

estimations of capacity and customer spending as noted. Given start up costs above of

$141,444.50, relative payback period is calculated at 3.87 and 1.93 years. Additional

operating expense will be incurred, but can be minimized as noted with use of cashier and

maintenance staff or Assistant Pro for ball picking and washing. Elimination of lighting

costs totaling 40,000, will decrease the payback period to 2.78 and 1.38 years

42 “Golf Practice Facilities in the US- A Summary of Supply and Demand”, www.NGF.com, 2005

http://www.ngf.com/


respectively, and may be the most viable option until operating costs and utilization are

better understood.

Risks

Risks to the Golf range at Amsterdam Municipal are highlighted below along with

plans for mitigation where possible. The factors may contribute to lower revenue

projections as noted.

Aesthetics- Extending the golf practice range and adding large netting may detract

from the golf course aesthetics, and will also cause hole 1 to be shortened. This may take

away from the golf experience from the golf course. However, adding a range will offer

current members amenities not seen before and its use can be promoted with offerings of

free range baskets for current members. A survey can also be completed to better

understand this risk such that a better decision can be made prior to beginning the

extension.

Utilization uncertainty- Utilization directly relates ball sales and has the largest

impact on revenues. A conservative estimate was included in revenue projections such

that more responsible decisions can be made. Additional competition can lower

utilization rates, which include not only other golf range facilities, but other local non-

golf activities. A better understanding of these other activities may need to be better

understood prior to a decision to move forward on this plan.

Economic conditions- The down turn in the economy may have an effect on the

available funds customers will have to spend on extracurricular activities. Pricing is

however, in line with local competition and national averages, but should be monitored


along with the economy to minimize impact on paying customers. Creating a fun and

friendly family environment with good customer service may keep loyal customers

returning during difficult times.

Conclusion The expansion of the golf range at Amsterdam Municipal Golf Course would definitely

be a viable option as the payback period, using conservative estimates of utilization, is

between approximately 1.38 and 3.87 years, and adding revenues to the golf course of

approximately $55,000 on average every subsequent year, assuming constant utilization

levels. A good marketing strategy to bring in new customers and a dedication to

operational efficiency by leveraging current golf operations would prove the expansion a

good option for Amsterdam Municipal Golf Course. It will help foster loyal life long

customers by building upon the youth programs and allow for better instruction to

support one of the highest potential target market of women’s golfers. Further, it can

help strengthen the relationships with the Golf Pro and Concessionaire with potential for

increased revenues, and offer a great practice option for current members, league and

tournament customers awaiting tee off. Finally, it would add additional value to one of

the City’s largest assets, Amsterdam Municipal Golf Course.

Golf Course Business Plan Appendecies - Union College 2009

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