Is It Time to Rethink Maintenance Budgets?
In the December,
1999 issue of Crittenden GolfInc, a panel discussion brought out some
interesting points regarding golf course maintenance. In light of current
economic conditions and a later than usual spring in the Midwest and Northeast,
the need to control expenses may finally get its due among golf course owners,
managers and superintendents.
Our experience has shown that 40% to
60% of the overall expenses of operating a typical daily fee or semi-private
golf facility relate to turf maintenance. While the 1999 article in Crittenden
stimulated some indignant responses to charges of “empire building”
in the maintenance area, Dr. Michael Hurdzan posed a very cogent question
–“ If you get a superintendent for $50,000 and he’s taking
$800,000 to maintain it (golf course), aren’t you better off paying
$100,000 for a superintendent that can do it for $400,000? The answer is very
simple math - about $350,000 better off.”
Another good question
would be, is it really possible to have that big a variation in maintenance
costs? That begs a multitude of other questions, but there can be a tremendous
difference in maintenance costs with no discernable difference in visual imagery
and playability for the average golfer.
In 1991 Edgehill studied the
maintenance expenses of more than 15 Private Clubs in a major metropolitan area.
The variation in maintenance costs was over 35%. While this may not be the 50%
variation outlined by Dr. Hurdzan, it was interesting to note that 2 courses
widely acclaimed (nationally and locally) for their course conditioning were in
the lowest quartile of maintenance expenses, with costs that were 25% below the
highest budget.
As we have continued to follow maintenance expenses
over the past decade, the trend in maintenance costs has generally seemed to be
increases well in excess of the increases in the Consumer Price Index. The trend
has been to see Greens Fees increase at a similar rate. While this is good for
revenues in the short term, it has also obscured the need to control expenses
for many golf course operators. There are also some other factors:
1.
Higher Labor costs
2. Higher Equipment prices
3. More Man/hours
used