Should I run my own Flexible Membership scheme or work with PlayMoreGolf?

How to run a Flexible Membership scheme well

Are a Golf Club considering introducing a flexible membership scheme?  If your golf management system offers a flexible membership module, then yes, you could consider using this to run your own flexible membership. You may also be a Golf Club who already has a flexible membership scheme in place.

Before you decide to venture down the path of running your own flexible membership scheme, it is important to know that there are several differences between running your own scheme and partnering with PlayMoreGolf.

What you need to know about launching a Flexible Membership category

When introducing a flexible membership category there is a large investment of time required. You need to plan, launch, and manage this new membership category.

Below gives you some things to consider:

• Planning how the points matrix will be calculated.
• Working out the benefits a flexible member will get.
• Calculating the selling price to ensure the category adds value to your membership offering.
• Launching the new category into the marketplace with marketing

• On going marketing activity to maintain your messaging
• Dealing with enquiries to explain how the scheme works.
• Signing new members up.
• Dealing with flexible members queries – points balances, topping up points, renewing flexible members and taking their payments.
• There are also the credit card costs you incur too.

The time and cost to managing a Flexible Membership category

This list may seem manageable but what does this quantify to? The table below shows the time taken in each area of managing a flexible membership category.

From our experience, it takes 455 hours per year or put another way 3 months. If we were to quantify that into cost, we know that a club could incur an additional £8,342 worth of payroll cost.

Benefits of partnering with PlayMoreGolf

If we then consider the benefits of a partnership with PlayMoreGolf.  A partnership provides your club with.

• Year-round marketing support to consistently generate leads for your club.

• A marketing launch plan where we place extra spend for your club to raise awareness in your local community that your clubs have a new membership offering.
• Members can join online in a matter of minutes.
• Our team will undertake extensive new member prospecting via our CRM system.
• We have a customer service team who will manage your flexible member queries.
• A renewals team who will support existing members coming up to renew
• A Club Support Manager to not only set your scheme up, train your team, but will also be on hand for ongoing support and guidance throughout the partnership.

But what does all this mean?

Cost comparison – your own scheme vs PlayMoreGolf

Let’s see a cost comparative between a club running its own flexible membership scheme versus a club partnering with PlayMoreGolf.

As you can see from the below graph, total revenue between running your own scheme and partnering with PlayMoreGolf is similar. The key difference is the profit or contribution generated from the revenue. PlayMoreGolf can operate the scheme significantly more cost effective than a club running its own scheme. A Full breakdown of revenue and costs is shown in appendix one at the end of this article.

Running your own scheme will generate you a contribution/profit of £10,929 from 40 flexible members paying £375 per annum.

On a like for like basis with PlayMoreGolf you will generate £17,824. £6,895 more profit/contribution.

Is running your own scheme profitable?

In summary, yes clubs can run their own flexible membership scheme. Golf clubs be successful in the number of members joining the scheme and the revenue being generated. Now from a golf clubs’ perspective, this may be a key measure of success. However, if the cost to operate the scheme results in significantly lower levels of contribution, you may ask yourself “is it worth the time and effort?”

Appendix One

This appendix shows a full breakdown of costs and revenue comparing running your own flexible membership scheme versus partnering with PlayMoreGolf.

The below breakdown assumes 40 flexible members paying £375 per annum.  Furthermore, the comparison assumes a clubs average hourly rate of pay is £17.92 per hour, which includes NI and Pension costs.

The revenue costs shown with PlayMoreGolf are shown after our commission, so this is the actual revenue the club would receive.

Excluded from the below comparison in a Club’s own scheme is any payroll cost for marketing as in some cases marketing is undertaken by volunteers, particularly in some members golf clubs.