Mark Mowrey said: O and M expense pro shop- 148,467.00 18- hole course w/bent grns. in transition zone-112,266.00. Does anyone have any idea what it costs to run an average pro shop and why the expenses would be greater than the course? This does not include labor, just operating expenses. Can't make sense to me.
Mark, would that include merchandise, food and beverage as well (I lump that in just because the small courses I have worked at include it in their budgets)? Merchandise cost could add up.
If merchandise is not part of expenses, then I would have to wonder what are they doing, upgrading fixtures and furniture. Do they have cable for golfers to watch? Look around and see what services they have and providing for customers benefit. If it does include merchandise cost, then it would be interesting to see revenue from merchandise.
I do know our pro shop labor costs are higher, mostly due to what the manager makes and also with the extra hours they are open. But as you say, yours doesn't include the labor.
I always wondered why food and beverage was budgeted, I understand as an operating expense to a degree, but I always asked the question what happens if we are real busy that year and you sell a lot of hot dogs and soda, do you get to exceed to budget? Never would get a good answer, but always figured that yes they could because the revenue should be paying for more supplies.
Mel