Some things are easy to explain.
From the July 26 TCC General Manager’s letter:
“TCC’s full fiscal year (vs. a partial year) 2019/2020 Food and Beverage Department Pro Forma shows a 20% increase ($180,000) in revenues due to the redesign of the grille room and dining room, the ability to have larger functions, simultaneous functions along with regular dining, and a greater casual dining and bar business. We will see revenue increases in regular dining, functions and special events based on the new flexible design. The Net Income (bottom line) financial effect of this increased revenue vs. the related expense increases will be an improvement of approximately $30,000.We feel this is actually a conservative revenue estimate based on all the added features and new flexible design of the clubhouse and we could actually see more of an improvement to the bottom line.”
$7,267,000 for $30,000 per year improvement.
If you were investing, would you buy stock in this corporation?
One nearby community which claims to have increased their revenues by 30% is Desert Highlands. Desert Highlands is the only club within 100 miles which is a combination HOA/Country Club/Golf Club as a single corporation. When you buy a home in Desert Highlands, you get the whole package including one Board, one management organization, one dues payment, a restaurant minimum and one set of rules. Homes are luxury and custom built. They have an outstanding process for major projects. It includes lots of member involvement in every aspect including financing. Their clubhouse remodel started with estimates of $10-12 million. With direct community involvement, Desert Highlands Clubhouse Restoration Case Study-FINAL – 01-10-2014it was whittled down to $4 million. Members VOTED with 88% approving! Members agreed to an assessment with multiple payment options. The project was so well managed the members received a rebate on their assessment of $840 per household. Who wouldn’t like that!
Desert Highlands had a successful Clubhouse Remodel and increased revenues by 30% because they had community buy-in and a vote, not because they had the right kind of bar stools or fire pits.
Desert Highlands was named one of 5 Distinguished Clubs in Arizona by Boardroom Magazine.
You can read a Case Study on the Desert Highlands project by following these links or on www.terravitafyi.com/