Managing Costs on a Budget

Golf Course Management Workshop

by James Graham Prusa

James Graham Prusa

Managing Costs on a Budget

19. Managing Golf Course Costson a Budget -- MBO

James Graham Prusa

Admiral Yi Sun Shin 1545-1598

COST SAVING Demands Your Willingness to CHANGE by:

• Honest, critically-objective assessment of your current practices and strategies

• Study and understanding of emerging business trends (Adm. Nelson – Trafalgar; Adm. Togo – Tsushima)

• Innovation, modification and adaptation of new (or old) methods

• Willingness to take thoughtful risks to gain the victory

• You, like Yi Sun Shin, must take a stand and have a willingness to risk being criticized by the ‘group’

James Graham Prusa

MBO – What is It?

•Management By Objective (MBO) – Dr. Peter Drucker• Integrates with Kaizen

•Complete planning

•Operating and Personnel Objectives

•Continual Evaluation

•Includes Budgeting from a ‘Zero Base’

Managing Costs on a Budget -- MBO

James Graham Prusa

Budgeting

•Food & Beverage Cost Analysis

• F&B Management Experience Works for Costing, Managing and Controlling Fertilizers, Chemicals, Course Supplies

• I was able to do well at F&B cost control because I understood chemistry! I learned better fertilizer & chemical cost control by managing F&B!)

Managing Costs on a Budget

James Graham Prusa

Budgeting

•Golf Course Operating Ratios – Do you know how to analyze your financials? (130 golf courses in Japan)

• Comparative metrics limited info in Asia – for now (AGIF)

• Cost-per-hole• Cost-per-hectare• Cost-per-round• Cost-per-member / customer• Spend-per-customer v Cost-per-customer• Full-time-equivalent (FTE)

Managing Costs on a Budget

James Graham Prusa

Similarities of setting up F&B costing analysis and doing the same for fertilizers & chemicals. How to really know the true costs of fertilizers…•How do you know your COS for Bar? Menu?

•Calculations for fertilizers and chemicals are similar

• VERY FEW golf course superintendents can tell you what they are paying for actual, needed nutrient elements PER GRAM! Don’t know their pour costs!

• POWER ! Takes hard work, risk, determination

• DO IT! Help your Super and build team relationship

Managing Costs on a Budget

James Graham Prusa

Managing Costs on a Budget

Do you really need what is in all those bags? Likely not!

James Graham Prusa

Managing Costs on a Budget

Do you really need what is in all those bags? Likely not!

James Graham Prusa

Managing Costs on a Budget

Fertility Costs? Ask a good F&B manager for help !DRINK BRAND

NAME:VENDOR: INVENTORY

UNIT TYPE (BOTTLE/ LOT/ KEG/ CASE) ON

HAND:

INVENTORY COST

PER CASE/ KEG :

INVENTORY COST

PER CONTAIN

ER :

COST PER

OUNCE:

SERVING

PORTION SIZE

(OUNCE):

PRICE PER

SERVING:

NET PRICE LESS

TAX PER SERVING

:

COST PER SERVING $

:

COST OF SALES (COS)

% :

GROSS PROFIT

PER SERVING

$ :

CoronaRedding Dist. 12oz bottles $19.70 $0.82 $0.07 12.00 $2.60 $2.41 $0.82 34.00% $1.59

Pale Ale Redding Dist 12oz bottles $19.75 $0.83 $0.07 12.00 $2.60 $2.41 $0.83 34.42% $1.58

CoorsRedding Dist. 12oz can $13.45 $0.56 $0.05 12.00 $1.85 $1.72 $0.56 32.66% $1.16

Genuine Draft

Redding Dist. 12oz can $13.45 $0.56 $0.05 12.00 $1.85 $1.72 $0.56 32.66% $1.16

Pale AleRedding Dist. 15.5gal keg $96.00 $96.00 $0.05 10.00 $2.15 $1.99 $0.48 24.26% $1.51

Genuine Draft

Redding Dist. 7.5gal keg $44.50 $44.50 $0.02 10.00 $1.75 $1.62 $0.22 13.82% $1.40

Budwieser Foothill 7.5gal keg $32.50 $32.50 $0.02 10.00 $1.75 $1.62 $0.16 10.09% $1.46

Seagrams 7Southern W S

12/1L btl case $162.96 $13.58 $0.40 1.25 $2.25 $2.09 $0.50 23.90% $1.59

Lord Calvert Southern WS12/1L btl

case $100.56 $8.38 $0.25 1.25 $2.25 $2.09 $0.31 14.75% $1.78

V.O.Southern W S

12/1L btl case $162.96 $13.58 $0.40 1.25 $2.25 $2.09 $0.50 23.90% $1.59

Canadian Mist Youngs

12/1L btl case $80.04 $6.67 $0.20 1.25 $2.00 $1.86 $0.25 13.21% $1.61

James Graham Prusa

Managing Costs on a Budget

James Graham Prusa

Managing Costs on a Budget

James Graham Prusa

Managing Costs on a Budget

James Graham Prusa

Managing Costs on a Budget

Fertility Standards?

Nitrogen (N)

The most abused, misunderstood and most greatly needed nutrient element.

What are you paying for a gram of N? What are your N Pour Costs?

James Graham Prusa

Managing Costs on a Budget

Golf Course Management Workshop

by James Graham Prusa

James Graham Prusa