the CGCOA
Insider
Vol 4 Iss 3 • Summer/Fall 2010
INSIDE this issue • PRESIDENT’S MESSAGE. . . . . . . . . . . . . . 2 • CGCoa board . . . . . . . . . 2 • NGCOA PLAYER
DEVELOPMENT AWARD. . 4
• HOW TO OPERATE A
PLAYER DEVELOPMENT PROGRAM AS A PROFIT CENTER. . . . . . . . . 6
• New members . . . . . . . . 7 • CGCOA COURSE OF THE YEAR . . . . . . . . . . . . . . 7 • SPONSORs. . . . . . . . . . . . . 8
NEXT MEETING: November 8–9
Board Retreat
Saddle Creek Golf Club copperopolis, ca
CGCOA 30098 Red Barn Place Canyon Lake, CA 92581 www.golfcalifornia.org
PUBLISHED BY IN THE LOOP GOLF, INC. 1206 Fourth Street Santa Rosa, CA 95404
(707) 569-8481 DESIGN BY J HILL DESIGN (707) 321-0026 COMMENTS
Please write to shaw@intheloopgolf.com
CGCOA MEMBER PROFILE
Steve Plummer Company: Championship Golf Service, Inc. Tustin Ranch Golf Club Position: President/General Manager
How were you introduced to the game of golf? Growing up in a small town in Kansas, I was introduced to the game of golf by two of my little league teammates. We told the resident golf pro that I was caddying, and as soon as we got over the hill on #1, I hit my first golf ball. I was hooked on the game immediately, joined the local junior program and rode my bicycle five miles to the golf course almost daily. Eventually, PGA Pro Pete Reyburn told me I could store my golf clubs at the clubhouse. I thought I was a cross country runner so I started running back and forth, playing up to 36 holes per day. (My father was the town plumber and probably preferred I would be working with him, but I always picked the golf course instead). Later on, dad fell in love with the game and always wanted to go to work with me. When the summer crew left for college, the pro’s son and I mowed greens for breakfast. When I turned 16, I began working on the maintenance crew. Since the pro’s son was a good player we tagged-along in the junior golf program in Kansas City on Monday’s. We were able to play some exceptional golf courses, and that’s when I discovered a career in golf might be an excellent fit. What attracted you to the golf business? I must admit, I’ve always had a great appreciation for a nicely manicured course, and with my role on the maintenance crew, I always took great pride in my work. I often brought back from Kansas City big ideas on what I would do to improve at our hometown course, though our resources were pretty limited. With the golf pro’s support (at our course he did everything—pro, superintendent, and head grill cook), I decided to become a golf course superintendent. I attended Kansas State University and obtained a B.S. degree in Horticulture with emphasis in Turfgrass Management. What were you doing prior to your current position? I have been working in the golf business nearly my entire working career. At Tustin Ranch, I was the construction and grow-in golf course superintendent, and the golf course superintendent for 13 years before
becoming general manager in 2001. In addition to being the GM and president of Championship Golf Services, Inc. (CGSI) for the past three years, I’ve been fortunate to have the additional responsibilities of overseeing the golf course management duties on behalf of the owner. In your current position you wear many hats. Share what a typical day is like for you. The great thing about working at the golf course, there are no “typical” days. My days are fairly long, though I must admit that I do not arrive at the golf course before the sun comes up like I used to as a golf course superintendent—though I often leave after the sun has gone down. I am fortunate to have very qualified and hard-working department heads throughout the facility, so I am not required to directly supervise all of our front-line staff. Yet, I do spend time communicating with all departments, monitoring current business and providing input and guidance. I try to be the hub-of-the-wheel for our business; and help set the tone and culture for the organization. I, along with my staff, am constantly seeking ways to best provide a quality experience for all our members and guests. What has been your involvement with the CGCOA and NCGOA? Prior to starting CGSI, we were members of the CGCOA and NGCOA as part of a larger management group. In 2007 (with the management (Continued on page 8)
California Golf Course Owners Association 30098 Red Barn Place, Canyon Lake, CA 92587 tel: 951.246-2928 / fax: (951) 246-2929 www.golfcalifornia.org or www.californiagolf.org
President’s Message GEORGE KELLEY Dear Fellow CGCOA Members, As the summer draws to an end, I hope that you are beginning to see some positive signs of life for your business. It certainly has been a challenging time for all of us in the golf industry. It seems we’ve seen “the bottom of the trough” and hopefully we are beginning to head back up in the right direction. I have spoken with several course operators who are seeing rounds and revenue increases from the levels they were a year ago. (I wish I could report the same observation here in the Central Valley). There seems to be a correlation between those already experiencing rounds recovery and their geographic location. Sub-markets in the Bay Area and Southern California appear to be doing better than those in the Central Valley. This downturn has forced many course operators to become better at delivering exceptional experiences to customers…and with far fewer resources. At Stevinson Ranch I have challenged my staff to significantly reduce expenses without compromising our customer’s enjoyment. While that is not easy to do, I can assure you that it can be done. Once the economy picks up again the valuable lessons that we’ve learned during these challenging times will pave the way for a more profitable track in the future. As a course operator I find one of my greatest challenges is finding the proper price point. With the advent of the computer (and the recent recession crunch) we’ll most likely be dealing with discounted rates and a more creative approach to pricing green fees. The fact of the matter is, we are living in a “discounted world” these days and I don’t expect that to change anytime soon. So continue to build your database and actively promote your facility and tee times online. Recent times require us to really focus on doing a better job in promoting/ selling our products and services. From the minute a golfer walks through the front door and until they depart the facility, we need to engage and educate them about the many benefits the game of golf has to offer (i.e. for family, friends, business…recreation & sporting opportunities, and renewed health & wellness). I also believe if we, along with our staff members, continue to heighten our customer relations (sales & service skills), all will benefit… including the bottom line. As Bob Dylan once said “The times they are a changin’”…and he was right!
CGCOA Board Members President
Secretary
Owner/Operator Stevinson Ranch Golf Course
Owner/Operator Hidden Valley Golf Club
George Kelley
Jay Miller
Vice President
Immediate Past President
Owner Oak Quarry Golf Club
General Manager Santa Maria Golf & Country Club
Sam Koh
Joe Priddy
Treasurer
Scott Hoyt
General Manager Cinnabar Hills Golf Club
Administration Executive Director
Ted Horton
THC (Ted Horton Consulting)
Board of Directors John K. Abendroth Celtic Golf Management
Bill Aragona
President/General Manager Boulder Creek GCC & Resort
Kimberly Bauer
General Manager/Regional Director Waterhouse, Inc. Creative Hospitality Services
Z. Gordon Davidson
IGM/Meadowbrook Golf Consultant Z. Gordon Davidson & Associates, Inc. Golf & Resort Properties
Dan Farrar General Manager
Tom Frost
Shaw Kobre President In The Loop Golf
Chris Lynch
GM/PGA Project Coordinator Byron Hot Springs
Dan McIntyre
General Manager, Western Operations ValleyCrest Golf Course Maintenance
Emmy Moore-Minister Media/Public Relations GCSANC & CGCOA
Dave Nelson
Sales Manager, California Club Car, Inc.
President Synergy Golf Course Management, LLC Owner Salt Creek Golf Club
Greg Pieschala
Kevin Heaney
President Championship Golf Services, Inc. General Manager Tustin Ranch Golf Club
Executive Director SCGA
Bob Higgins
President Valley Crest Golf Course Maintenance
Steven J. Plummer, CGCS
Angela Schmidt
Best Regards,
General Manager Saddle Creek Golf Club Castle & Cooke
George Kelley
Jerry Hollingsworth Hollingsworth Enterprises
President Tasmark Enterprises
Ted Horton
William Sherman
Eric Jacobsen
Ed Smilow
Be open to change.
CGCOA Executive Director THC, Ted Horton Consulting Vice President of Golf Properties Castle & Cooke California Inc.
Patrick Kemball Director of Golf The SCGA Golf Course
Valley Crest Golf Course Maintenance
Terry A. Selk
Owner William Sherman Golf Attorney at Law
Shawn Smith
Director of Golf Administration Pebble Beach Company
NGCOA Player Development Award Applications for the award are now being accepted. Deadline for entry is October 1, 2010. This prestigious award recognizes the NGCOA member that throughout the year has implemented the most successful player development program, provided effective return-on-investment and a welcoming atmosphere for new golfers. Application Process: In an effort to reduce our carbon footprint, applications and coversheet must be submitted electronically to sgurley@ngcoa.org for consideration. Applications are flexible; however, we do ask you provide us a detailed review of your program. Please include the following in your application: • Completed application coversheet (download at ngcoa.org) • A description of your player development program and new player retention programs • An explanation of the target demographic for the programs (i.e. age group, gender, etc) • Data with regards to the number of new/beginning golfers who have participated, retention figures and financial implications to your business • Any related materials such as pictures, quotes, testimonials, and statistics that will help the Board of Directors better understand the nature and impact of your programs Past winners: We want to hear about all the new things you are doing at your facility. We welcome your application. (Only current NGCOA members may submit an entry) The winner will be chosen by the NGCOA Board of Directors and honored at the 2011 Annual Conference in Orlando, Florida, February 7–11. this page top: CGCOA Meeting Hosts Jody Brothers and Greg Rodgers (TPC SF Bay at Stonebrae) proudly display Resolution No. 109.
middle: GCOA President Bill Aragona shares with CGCOA
members his experiences from earlier years in the business. bottom: Allied golf industry representatives meet in California
Senate Chambers with Hon. Senator Alex Padilla, author of Resolution No. 109. (L to R) Dianne Davis-PWGA, Jim Ferrin-CGCSA, Hon. Senator Alex Padilla (Dist. 20), Emmy Moore Minister-CGCOA, and Chris Thomas-NCPGA.
facing page top: Gathered at CGCOA Meeting (TPC SF Bay at Stonebrae) with
California Golf Week Resolution are (L to R) Ted Horton, Bill Aragona, George Kelley, Carol Pence, Tom Schunn, and Sam Koh.
bottom: Nor Cal PGA members gather at CGCOA Meeting to
celebrate 2010 state resolution which recognizes the positive social and economic benefits of golf in California.
How to Operate a Player Development Program as a Profit Center By Ken Morton, Sr. Because of increased competition with the number of golf courses built during the 1990s and because the rounds of golf played over the last ten years is down, golf facilities across America have naturally cut costs by reducing positions. One of the first positions to be cut is the Assistant Golf Professional representing Player Development. Most of the time, this person is considered a part or full time employee who then operates as an independent contractor giving lessons on his or her free time before or after working hours. In many cases the teaching professional may keep 100% of their lessons or give a small percentage of lesson revenues back to the club. Because the club does not see Player Development as a profit center, these positions are one of the first to be eliminated during tough times. We have found the independent contractor business model to be the most prevalent employer/employee relationship between a golf facility and teaching professionals. This model is extremely popular because the club does not have to match government benefits to an independent contractor, they don’t have to manage anyone and they don’t have to have a separate department on their books for Player Development or Golf Instruction. Our opinion is, this traditional Independent Contractor business model must change to an employer/employee relationship for Player Development Programs to work. Simply put, there isn’t any accountability by anyone if your teaching professional is an independent contractor. If there is, then they cannot be an Independent Contractor. Our view is, how is it even possible that a golf facility would consider giving up control of the one department that creates future golfers and that
has proven to increase rounds played by core 1. The facility can take ownership of one of the most important departments that has the potential to golfers? Our studies have found it rare to find a golf facility investing in golf instruction by management, or in marketing to promote golf instruction because the club doesn’t normally receive any of the revenues under an Independent Contractor environment. It is estimated that more than 85% of clubs in the U.S. operate in an independent contractor relationship. But here is the zinger: The Wage & Hour Laws say, if you have an independent contractor teaching professional at your club, the club cannot book his or her lessons. When the club books the teaching professional’s lessons, the club is managing the teaching professional’s time and once that direct connection is made between the golf facility and the teaching professional, the teaching professional can no longer be an independent contractor. In fact, if a customer calls a golf course to book a lesson that has independent contractors the staff member receiving the call must by law refer the customer to the teaching professional at a separate phone number. We have made calls to several golf courses within our region (as well as outside of our region) to find out that few if any of the employees at golf courses who have independent contractors know anything about their golf instruction programs. Is this scenario good customer service? So, to reduce costs, golf facilities across America have taken the easy way out. However, it certainly isn’t in the best interest of the future of the game and even more importantly the future of the facility to not have a Player Development Golf Instruction Program. Some of the positives of having a Player Development Golf Instruction Program are:
create future increases in rounds, memberships and ancillary revenues. 2. A planning/budgeting process can take place between the golf instructors and the management of the golf facility to maximize revenues and to appropriately add those expenses necessary to put on a quality program. 3. Management and teaching professionals can together create programs specifically tailored to the needs of the facility. Yes, the golf instruction clientele is important to the teaching professional but it is even more important to the facility. 4. The club or facility can together create golf instruction internal and external marketing programs to promote golf lessons. Internal inexpensive marketing by e-mails, newsletters, announcements on bulletin boards and bundled into activities at the club can generate major interest. External marketing with local Newspaper, Radio and TV can generate terrific responses. 5. The teaching professional can become a golf guardian for the members/customers at the club. Quality golf instructors not only give golf lessons but fit golf equipment and connect new and existing golfers to other programs at the club or facility. Management can make sure this happens by establishing a workable program. 6. The counter staff can be fully informed about lesson programs so they become an integral part of making reservations for lessons. If our golf facilities are in the golf business, golf instruction must be the center piece of growing the game. 7. A quality lesson program not only increases rounds with new golfers but will help increase the number of rounds our core golfers play. 8. The club and/or the facility can work out a schedule of the best times during the day when the golf instructor should be teaching and the best times the teacher is needed for other duties.
Welcome, New Members! How can a golf facility give 100% of the golf instruction to the teaching professional and still operate the department as a profit center. First of all, a break even in this department is a win-win because the real profit comes from the increase in all the other departments like the driving range, club rentals, cart rental, additional green fees, food & beverage and of course retail sales. What should a fair financial split of lesson revenues between the golf professional and the golf facility be? That is where the budgeting process comes into play. From the clubs point of view the costs of the wages, while on the lesson tee, the benefit packages paid to the golf instructors, marketing costs, equipment, technology and supply costs must enter the budget so all parties understand that it is a business. The goal of the facility and the teaching professional should be to greatly increase the number of lessons the golf professional gives to ultimately increase rounds and facility revenues. We have proven that a commission somewhere between 50 and 60% of the lesson revenues to the golf professional can increase the business of the club and if marketed and managed properly increase the wages of the teaching professional creating a true win-win relationship. Our program gives 50% to entry level golf instructors, 55% to PGA Members and 60% to Certified Instructors. We also charge rates commensurate with the experience and training that the teaching professional has received. For instance a 30 minute lesson could be $40 for an entry level instructor, $50 for a PGA Member and $60 or more for a Certified Instructor. Obviously, there is much more than this article covers to run a successful Player Development Program. The major purpose of this article is to inform others that our company has been in the Player Development business for over 50 years and have always operated this department in the black and most of our teaching professionals are receiving higher wages than industry standards. We strongly believe that if the industry is going to truly grow the game, it has to start at each and every golf facility. Special thanks to Ken Morton, Sr., for providing this article to the CGCOA. Morton is founder of Morton Golf, Inc., a Sacramentobased multi-course golf management company. During his 50+ years in the golf business, Morton has received numerous awards for his contributions to the game of golf. Due to his genuine concern for the future of our sport, Morton continues to share his knowledge and expertise with others.
Hidden Valley Lake Monarch Dunes at the Woodlands The Olympic Club Barbara Worth Resort Renewal/Rejoin rate as of August 2010: 84% and climbing
CGCOA Course of the Year The CGCOA awards selection committee is currently reviewing nominations for the chapter’s 2010 Golf Course of the Year. The distinguished course for 2010 will be announced in the next issue of The Insider. Below is a list of previous award-winning courses. CGCOA Courses of the Year 2001
Pebble Beach GL (National Winner) Pebble Beach, CA
2002
San Juan Oaks GC Hollister, CA
2003
Boulder Creek Resort Boulder Creek, CA
2004
Pasatiempo GC (National Winner) Santa Cruz, CA
2005
Poppy Hills GC Pebble Beach, CA
2006
Cinnabar Hills GC San Jose, CA
2007
Stevinson Ranch GC Stevinson, CA
2008
Tustin Ranch GC Tustin, CA
2009
Industry Hills GC (National Winner) Industry Hills, CA
2010
To Be Announced Soon
THE CGCOA WOULD LIKE TO THANK THE FOLLOWING SPONSORS FOR THEIR SUPPORT: CGCOA
NGCOA
FOUNDATION SPONSOR
Premier Partners
Golf Insurance Services, LLC
Club Car Inc.
Rick Sigel (916) 635-1050
rsigel@gpins.com
www.golfinsuranceservices.com
ANNUAL SPONSORS Club Satellite Network Ted Salata (650) 462-9700
csnlife.com
Cyber Golf Network Inc. Dan Murnan (425) 640-7170
dan@cybergolf.com
www.cybergolf.com
Ed Smilow, Esq. Ed Smilow (714) 937-2095
edsmilow@golfcourselaw.com www.golfcourselaw.com
Golf Now Brad Axon (480) 232-5370
baxon@golfchannel.com www.golfnow.com
Greenway Golf George Kelley (209) 664-6400
gkelley@greenwaygolf.net www.greenwaygolf.net
Pellucid Corporation Jim Koppenhaver (847) 808-7651
jimk@pellucidcorp.com www.pellucidcorp.com
Pellucid Corporation Harvey Silverman
harvinfc@pacbell.net Professional Golfers Career College Edward Smilow
edsmilow@golfcourselaw.com www.golfcollege.edu
Tapin Solutions Reed Thompson (866) 742-8044 (toll free)
info@tapinsolutionsinc.com
Target Specialty Products Lon Richards (562) 802-2238
trecs@target-specialty.com
www.target-specialty.com
ValleyCrest Golf Course Maintenance Greg Pieschala (818) 737-3110
gpieschala@valleycrest.com www.valleycrest.com
VGM Club Dawn Prebula (866) 620-2774
dawn.prebula@vgm.com www.vgmclub.com
Dave Nelson (800) 564-6531
dave_nelson@clubcar.com
The Toro Company Doug Dahl (800) 585-8001
dougd@turfstar.com
Darren Redetzke (800) 348-2424
dredetzke@toro.com
Entegra Procurement Services Jim Bailey (877) 922-0285
jbailey@intlclubsuppliers.com
Preferred Partners Clubsurance Joel Willis (843) 572-4567 www.clubsurance.com
Electronic Transaction Systems Corporation Hadi Akkad (800) 834-7790 www.etsms.com
Helena Chemical Christy Byrd (803) 822-8028
brydc@helenachemical.com
Pepsi Tracy Maphet (886) PEP-GOLF
Smart Buy Suppliers Gatorade Tracie Maphet (886) PEP-GOLF
Motorola Kelly Jadlot (800) 933-4262
Office Depot John Travers (301) 567-6704
Srixon Sports Hollie Vokal (678) 518-5121
Steve Plummer (Continued from front page) company startup), we joined on behalf of Tustin Ranch Golf Club. I’ve served on the board of directors for the past two years, and do my best to attend all CGCOA meetings. About a year ago I was asked to align a series of quality presenters for the inaugural Growing the Game Conference, which turned out to be a huge success. What are the biggest challenges facing the golf business today? Obviously, with a background as a superintendent I think we have a great challenge today with water availablility and its cost— especially in California. At Tustin Ranch, we use nearly 100% reclaimed water so we will always have good availability. I am not sure our business will always support the cost of purchasing it. That being stated, I think it is a challenge to educate our players that a drier, faster course (that may not be completely emerald green) still can provide an excellent golf experience. On the business side of golf, after the recent financial and real estate crisis I think the golf business has a definite supply and demand problem. As major expenses such as health care, utilities and water continue to increase, we will have a definite challenge for a few years keeping our rates at necessary levels to cover the cost of operations with a little profit until all economic issues get back in balance. Any special distinctions or honors (in golf and/or community)? • I’ve been a Certified Golf Course Superintendent since 1987—23 years. • Tustin Ranch was named “California Golf Course of the Year” by the CGCOA (2008). • Voted #1 Orange County golf course by readers of the Orange County Register (2007, 2008 and 2010). • Voted Tustin Chamber of Commerce “Business of the Year” in Large Business Category (2008). • Served as President of the Orange County: California’s Golf Coast Marketing Consortium (2006-2008). As an informed golf course operator, how do you view the future of golf? I believe the future of golf is going to improve and hopefully with even more vitality than in years past. It is a great sport, plus rich in values and traditions too. Even though the current economic situation has made it difficult on many golf operations throughout the nation, I truly believe the values inherent in the game will allow golf to continue to attract new players interested in the outdoors and the challenges of the game. What is your dream foursome? I’m not sure I have a “dream foursome” but I would like to have one more round for old-times sake with my Dad. I’d complete the foursome with Pete Reyburn and Jim Colbert, key mentors who both had an immense positive influence on my career in the golf industry. I know with this designated foursome it would be a very enjoyable and memorable round of golf.