Revenue bonus Cancel The title field is required!

1. Joe Todaro

   

   0 posts
   
   7/15/2013 11:07 AM

   Hey guys,
   I was wanting to throw something out to the muni guys.
   
   We are a facility owned by the state (Texas) as we are part of a state school. Currently I receive a small (I mean really small, but it adds up!) percentage of green/cart fee revenue as part of my salary. Great little system and one I think that really seeks to reward what I do to drive revenue for the course.
   
   This next year they are wanting to change that to a profit based incentive. Which most certainly means the bonus goes away because we have all agreed that we should be pouring what we make back into the course (its in a really bad state of disrepair). I have some real issues with this but wanted to get your take.
   
   Would any of you care to comment on if you get any type of revenue bonus and how that might be structured?
   
   Thanks for taking the time to respond!

   
   
   
   
2. Melvin Waldron

   

   43 posts
   
   7/15/2013 12:07 PM

   Joe,
   
   I am currently working at a city/county park system golf course. We do not receive any bonuses based on anything. Our pro shop guys will get a bonus based on revenue, along with lesson money, jr. clinic money too. I'm not sure how any of that is based, except that I beleive it is on revenue over expenses, if we have a bad month, they will not get the extra money.
   
   I have worked at a university golf course in Northern Indidana and did not get any type of bonus there either, our pro did take a pay cut (we started at the same salary when we both started about the same time) but they did increase the incentives if we were to hit them.
   
   I also worked at a county course in NJ, there we received no bonuses, (although the free housing felt like a big bonus), we over saw the club houses as well and didn't get anything, after I left they installed clubhouse managers but I don't think they were provided any type of bonus incentive.
   
   Sometimes I like the idea of a bonus, only because the pros at our facilities now get those incentives and we are the ones providing the product they sell, but would it make me allow things detrimental to the course? I think they should change their incentives to only on merchendise (any outing should include prize fun of gift certificates), food, lessons, and maybe cart sales. Heck they make a base salary more then us already. I would suggest bonuses be based off that and the golf course revenue be invested back into course improvements. But what do I know, I'm just a grass grower.......with a spelling problem...seems it's not working?
   
   Mel

   
   Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO
   
   
3. Joe Todaro

   

   0 posts
   
   7/15/2013 12:07 PM

   Melvin Waldron, CGCS said: Joe,
   
   I am currently working at a city/county park system golf course. We do not receive any bonuses based on anything. Our pro shop guys will get a bonus based on revenue, along with lesson money, jr. clinic money too. I'm not sure how any of that is based, except that I beleive it is on revenue over expenses, if we have a bad month, they will not get the extra money.
   
   I have worked at a university golf course in Northern Indidana and did not get any type of bonus there either, our pro did take a pay cut (we started at the same salary when we both started about the same time) but they did increase the incentives if we were to hit them.
   
   I also worked at a county course in NJ, there we received no bonuses, (although the free housing felt like a big bonus), we over saw the club houses as well and didn't get anything, after I left they installed clubhouse managers but I don't think they were provided any type of bonus incentive.
   
   Sometimes I like the idea of a bonus, only because the pros at our facilities now get those incentives and we are the ones providing the product they sell, but would it make me allow things detrimental to the course? I think they should change their incentives to only on merchendise (any outing should include prize fun of gift certificates), food, lessons, and maybe cart sales. Heck they make a base salary more then us already. I would suggest bonuses be based off that and the golf course revenue be invested back into course improvements. But what do I know, I'm just a grass grower.......with a spelling problem...seems it's not working?
   
   Mel

   
   
   Thanks Mel! Our pro does get more of a bonus than I do since his is based on all revenue. And I don't have a problem since my overall salary is more than his. This bonus structure is just a way to get the salary closer to what it should be. And changing it now is basically giving me a pay cut. And I totally agree, it's not near enough to do anything detrimental to the course.

   
   
   
   
4. Ryan Walsh

   

   0 posts
   
   1/29/2014 3:01 PM

   Joe,
   Just an idea... if they are thinking of removing your golf cart percentage, is there a way that you could sell used golf balls inside of the pro shop? Just put them in a container on the counter by the register and charge what you feel is fair. Maybe give the head pro a small cut for all the sales.
   I have my guys collect all golf balls found on the course and we make a donation to the First Tee Program each year. Tread lightly, because you don't want people out there "searching" for balls. We come across many each morning just by fulfilling our ordinary tasks. We've donated thousands of golf balls and 50 cents/ball can be some cool spending money!
   
   Best,
   Ryan

   
   
   
   
5. Steve Nelson

   

   0 posts
   
   1/30/2014 7:01 AM

   No bonuses of any kind at my muni. I would also be skeptical of linking bonuses to 'profit' at any course, but especially a muni. We run as an enterprise fund so we are required to operate in the black. However, our committee and city council, in an effort to keep fees low, makes sure we run a very thin margin, if any at all (PS I am fine with this as this is what munis are supposed to be). Also, should we by chance have a very good year, the city manager will make damn sure overhead fees go up so the general fund can take it away. So much for any profit.
   
   I would think something similar happens in the private sector. Profits are taxed, so I would think an owner would take advantage of tax rules to minimize 'profits' on the ledger by investing in the course or equipment, or some other mechanism to reduce tax burden.
   
   In either case, your profit based bonus goes up in smoke.

   
   
   
   
6. Melvin Waldron

   

   43 posts
   
   1/30/2014 8:01 AM

   Steve Nelson, CGCS said: No bonuses of any kind at my muni. I would also be skeptical of linking bonuses to 'profit' at any course, but especially a muni. We run as an enterprise fund so we are required to operate in the black. However, our committee and city council, in an effort to keep fees low, makes sure we run a very thin margin, if any at all (PS I am fine with this as this is what munis are supposed to be). Also, should we by chance have a very good year, the city manager will make damn sure overhead fees go up so the general fund can take it away. So much for any profit.
   
   I would think something similar happens in the private sector. Profits are taxed, so I would think an owner would take advantage of tax rules to minimize 'profits' on the ledger by investing in the course or equipment, or some other mechanism to reduce tax burden.
   
   In either case, your profit based bonus goes up in smoke.

   
   
   Gus, when you do have a good year does it get translated back into equipment and projects? Or are you able to fund those within your budget? We have always rebuilt tees and bunkers with funds from our operating expenses. We do the same with equipment lease purchases.
   
   Mel

   
   Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO