POSitive Reinforcement

Whether they've integrated their point-of-sale systems or not, these club managers say they can't ever imagine choosing to do business with chits again.

by Sheryll Alexander (editor@clubandresortbusiness.com)
February 2006
 

The days of pencil chits are over. This centuries-old technique for keeping track of the business conducted in private club settings (and even in some semiprivate, daily fee and resort locations) is dead and gone. Technology has finally brought the computer into the club and onto the course—perhaps forever. And why not?

Today's very user-friendly point-of-sale (POS) systems can now give members, their guests and your employees immediate access to information, and significantly streamline the process from signed chit to accounting to bill—and most importantly, payment.

The advantages of POS systems are real and becoming more and more vital to every club's business. But when is the best time to make this momentous upgrade? And how do you choose the best system for your club, your Board and your members?

For the uninitiated, buying a POS system can be as scary as the approach of global warming. So here are four club managers—all of whom are now also POS experts—to help you heat up your quest to shed the chit sheets and move ahead with light speed towards the next generation of financial reporting and club management.

Progress Has Its Price

 

For many clubs, cost is the most important consideration when talking technology. Craig Girolami, General Manager, Chef and COO of The Park Club in Kalamazoo, Mich., has worked with POS systems for almost seven years. There's certainly a point, he now believes, where the advantages of such technology will justify the not-inconsiderable price tag. "I would want to see at least $750,000 in revenue before considering the investment," he says.

For Girolami, these are the most important benefits to be gained from POS systems:

• The availability of automated reporting on all aspects of food and beverage business (for example, tracked usage by product, member, member class, staffing levels, or time period).

• Tidy recordkeeping, accurate pricing and totaling of detail on member chits. Plus, easier look-up capability for post-statement questions from members.

• Faster production of accurate guest checks.

• Ease in splitting checks.

• Consistent pricing, to minimize (or ideally, eliminate entirely) the need for servers or attendants to memorize or look up what something costs.

• More timely and accurate service.

• Flexibility of payment options (in the event a member doesn't want to charge a bill to his or her account).

Bringing Food and Play Together

 

In most clubs, dining and golf have always been separate operations. But with members spending more leisure time at the club and with technology interfacing all operations, integration takes on new importance. Some of our automation converts now believe that having separate software for golf (including tee sheet, purchasing and tournament functions), accounting and the front of the house is just a waste of time and money.

"After having worked with systems that were not integrated and then one that is, the integrated [approach] is definitely the most efficient," believes Karen Peterson, Human Resources/ Member Services Manager at memberowned Inglewood Golf Club in Kenmore,Wash.

Integration simplifies all billings, Peterson feels. "New members are entered into a single database that updates the golf shop information, as well as the accounting and dining or pool areas," she explains. She also believes these allencompassing systems give the head golf pro a better tracking system for sales. In the end, she says, "It's all really about servicing the member."

When deciding whether to upgrade an entire system, Peterson says integration isn't quite as critical, if there's already a good working relationship between the accounting and POS package support groups. However, she says, "many clubs inherit different systems, and the trick is to get the interface to perform as needed."

For J. Brent Tartamella, Country Club Manager at The Westmoor Club on Nantucket Island in Massachusetts, integration was essential. "We are a brand new club and, in my eyes, it was all about integration from front to back and sideways to payroll," he says.

Club management should expect nothing but the most technologically advanced systems from POS vendors, Tartamella believes. "We press our staff and [other] vendors every day to improve and be more creative," he notes. "Why not ask our software [providers] to do the same thing?"

And when it comes to creativity, General Manager Doug Burnham of the 27-hole Spanish Wells Golf and Country Club in Bonita Springs, Fla., wants it all. "I would like to see our company be able to integrate with [global positioning systems], so we can generate reports to see who uses the course after hours, and get a trackage report on the actual rounds," he says.

Girolami of The Park Club, however, is one who says that while he initially felt integration was very important, he has since changed his position. Having separate systems for various functions can be more user-friendly, he now feels, because it makes it easier to identify potential problems. "If a system is integrated, you often lose the human analytical component," he says.

Making Smart Choices

 

So, how do you narrow it down to just one POS system? The answer isn't easy, and bigger isn't always better, says Girolami.

"Try to involve a participant from the Board or general membership who is computer-savvy," he says, "especially someone who understands programming languages and where the future of computing is headed." He also recommends buying a system based on compatibility with future technology, including network hardware, operating systems and the projected needs of the club.

You should also make sure technical system support is factored into the budget, Girolami adds. It is critical, he feels, to contract with a local hardware vendor who is highly experienced in the club's network platform.

All in all, Girolami says he chose his current vendor for three main reasons:

1. Solid database technology, with reliable standard Windows networking.

2. Very low support and maintenance fees.

3. No costly onsite installation and training fees.

Girolami also advises that you should identify and purchase only the computer modules you need to get started."Others can always be added," he notes. "But the cost of unused computing power will never be recouped—and will be obsolete before you know it."

At Inglewood Golf Club, Peterson says her research led her to discuss POS systems with other area clubs, to get some first-hand experience. She says to ask questions like: Did the vendor follow through with setup and support? Did the program really do what was promised?

A club's requirements should reflect what you expect the system to do, Peterson adds. However, she warns, there is no "perfect" system—"and certainly not at a perfect price."

Beyond the Fear Factor

 

Once a POS system is in place, one of the biggest hurdles to complete implementation is employee training. Although the new system may seem daunting to some, remember that most employees are already computersavvy. "Keep in mind that many servers are young, very PC-competent and not afraid to learn new programs," says Peterson.

Training can be tougher for administrative staff, she adds, because they have to learn to reconcile POS reports and recognize trouble spots. "We have designed a written manual that deals with most issues, but most importantly, we [insist that] our support questions are answered the same day by our vendor," she says.

Inglewood decided to spend extra money to personalize its help manual, Peterson adds, so it would include more club-specific details and provide staff with screen shots and printouts that they could more easily relate to. "The help manuals included with POS software can really be great," she notes, "but why not personalize it to help your staff use it to its fullest and most efficient extent?"

However, it's really only practice that makes perfect, says The Westmoor Club's Tartamella. "We provide the staff with mock chits that progressively get more difficult, and at the same time the time that we give them for processing them gets shorter," he explains. "We do the same for the back of the house as well—[it's important to] run parallel systems, until you're sure the kinks have been worked out."

Burnham of Spanish Wells Country Club says he first makes sure all department managers are very knowledgeable with the system, and then makes them completely responsible for training their own staff. Because the club's POS system has also been found to be extremely valuable for budgeting needs, Burnham says the managers must also be aware of how the system is set up for their particular department, as each one has unique needs.

Reporting for Duty

 

Whatever the cost and training needs, POS systems should be about results, right? One of the biggest strengths of POS systems is daily reporting, which can make it easier to view each department's strengths and weaknesses.

And while POS reports are definitely a bonus, Peterson reminds that they must be used to be successful. "You can have a lot of reports, but unless they are meaningful to management, they are a waste of time," she says. She recommends taking the time to find out what reports are needed by whom, determine how frequently they should be generated, and then constantly monitor each report's usefulness in practice.

POS also makes billings easier, Peterson adds, but mistakes can still be made, such as billing the wrong member with the same last name. "Our next step will be to incorporate the member's photo on the POS screen," she reports. "That should decrease the number of missed chits."

Member recognition, says Peterson, is another service to the member. "Sometimes members just sign their chits without really reviewing the correct member number," she notes. "By adding photos of the spouse and children of members, it should increase accuracy as well when they charge on a member account." But for clubs thinking about adding images to their POS systems, Peterson warns to compare the administrative time and effort involved with taking the photos and importing them into the system, to the member benefits that stand to be gained.

Another worthwhile expense, Girolami says, is to use laser printing, "which is much faster." He also looks forward to time savings that will be gained by e-mailing statements to members who he hopes will elect that option when it's offered "in the near future." C&RB

 

To comment about this story, suggest topics you'd like to see covered in future issues of C&RB, or just ask a question, contact editor@clubandresortbusiness.com

 

 

 

 

 

 

 

 

Summing It Up

• Integration of point-of-sale systems, while not absolutely necessary, will help smooth coordination among all departments for accounting issues.

• Don’t rush into a POS system purchase without fully researching it first—including seeing it in action at other club or resort applications.

 

• Don’t skimp on system training; be sure everyone gets proper, hands-on instruction for how the new system will—and won’t—work.

 

• Keep reports streamlined, so you aren’t overloaded with more information than you can actually put to effective use.