Situation
A top ten management firm acquired a Florida private country club in a gated community from a residential developer and pursued incremental revenue through non-member activities, curtailing many of the perks the developer had established to drive real estate sales at the expense of the club’s bottom line.
The club struggled to attract and retain members, and department heads began responding to pressure from vocal members with inconsistent policies. The facility soon became the poorest performer in a portfolio of nearly fifty properties and unhappy members besieged the management company’s CEO with angry emails.
Originally engaged as a consultant, Affinity’s recommendations were embraced, and Affinity was asked to operate the facility for a six month turnaround period.
Key Initiatives
- Conducted member survey and met with many members individually to boost morale.
- Implemented reporting systems for private club environment.
- Revamped dining operation for improved efficiency and service.
- Met with golf staff and key members to resolve tee time reservation conflicts.
- Overhauled accounts receivable policies to eliminate past due accounts.
- Eliminated haphazard membership discounting.
- Launched membership campaign targeting potential members within the gated residential community.
- Implemented member prospect database.
- Reduced access to non-members.
Cash flow increased 32% in six months. Membership retention and recruitment improved, member morale increased and complaints to headquarters stopped.
