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 Costs
on a Budget -- MBO
James Graham Prusa
COST SAVING Demands
Your Willingness to CHANGE by:
• Honest, critically-objective assessment of your
current practices and strategies
Admiral Yi Sun Shin 15451598
• 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
Managing Costs on a Budget -- MBO
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’
James Graham Prusa
Managing Costs on a Budget
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!)
James Graham Prusa
Managing Costs on a Budget
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)
James Graham Prusa
Managing Costs on a Budget
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
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 INVENTO INVENTO COST SERVING PRICE
NET
COST PER COST OF GROSS
UNIT TYPE RY COST RY COST PER PORTION
PER
PRICE SERVING $ SALES
PROFIT
(BOTTLE/
PER
PER
SIZE
SERVING: LESS
:
(COS) % :
PER
OUNC
LOT/ KEG/
CASE/ CONTAIN
(OUNCE):
TAX PER
SERVING
:
E
CASE) ON
KEG :
ER :
SERVING
$:
HAND:
:
Corona
Redding 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
Coors
Redding 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 Ale
Redding 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 7
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
Lord Calvert
Southern WS 12/1L 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
$80.04
$6.67
$0.20
1.25
$2.00
$1.86
$0.25
13.21%
$1.61
12/1L btl case
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