Balancing Member Expectations and Financial Stability

Why do members join your club? It's what I ask myself every year around budget time when faced with raising dues to address higher labor costs and inflation to continue exceeding member expectations. During this time of questioning by the finance committee, I always focus on the value of our brand. And when it comes to delivering an exceptional member experience, there is no room for compromise.

As we all know, a positive member experience improves satisfaction and retention rates. Happy members are more likely to spend money at your facilities, eat at your restaurants and attend your events. The increased spending boosts your revenue and sustains operations, giving you an advantage in a competitive marketplace.

Yet knowing this, some members are not too excited about paying more for something that last year cost less. To avoid conflict, many general managers become people pleasers and cave into the demands of a vocal minority. Failing to lead and being afraid to raise dues will leave you in the dust. Your members will start enjoying venues outside your gates, your competitors will gain an edge, and your club will become irrelevant. It is a recipe for disaster that will soon disintegrate trust. Then as soon as the club starts to suffer, it's you that's looking for a new job. The last thing you want is for your board to micromanage you and your team. They must stay in their lane. Don't wait for your board members to lead you. It's up to us to teach them. As hospitality professionals, we know this industry better than they do. Yes, they have been titans of their industry, but running a club is not the same as being an executive at a Fortune 500. That is where education comes in.

Board members come from diverse professional backgrounds, so we must ensure they have the tools to succeed. We must train them on club finances, budgeting, and the importance of governance. Their job is to set policy and hold management accountable, not run the club. The last thing you want is a board member sharing their thoughts on menu ideas and food preparation. That is why board retreats are critical to your success. I encourage you to hire an outside consultant and invest in this worthwhile exercise. A successful retreat gives your board a greater understanding of their responsibilities, making them better equipped to make sound decisions that align with the club's mission and long-term goals. When the board understands how the club operates, it can make decisions that are in the members' best interest and the club's financial health.

A well-informed board aligned with the general manager enhances collaboration leading to better outcomes. This healthy partnership with open communication creates a defined understanding of roles and ensures that board members respect the authority and expertise of the general manager and their team. So, when faced with whether or not you will increase dues, think of your club's mission and vision, then make your decision aligned with that purpose without acquiescing out of fear.