Money follows success
Meaning be good at what you do and your customers will reward you. Chase money and it won’t necessarily lead to success. Worth thinking about. Clubs need lots of revenue to cover fixed costs, variable costs and to provide funds for growth along with community dividends. The more successful your club or pub the more members or customers are attracted and greater revenue generated.
Members are your lifeblood
In reading my articles you’ll notice that I firmly believe that members are the lifeblood of every club. For pubs think loyal followers. Members are loyal, they give you their contact details and visit regularly. They bring their friends, they go along to your shows and participate in other activities. They’re interested in your venue and what’s going on. Is it really that hard to figure out what you have to do to be successful? Getting members, getting them into the venue and getting them to keep coming back is your ultimate measure of success.
Two thing to do
That means all you have to do are two things. Keep your members happy and attract new ones. Marketing is where decisions are made about what it takes to keep your members happy and attract new ones, or for the pubs, customers. Your marketing budget is directly tied to your club or pub revenue and must reflect this.
What’s it worth?
How much should you spend on members? To start with you have to do some simple arithmetic. To keep things simple let’s start with 1000 members. How much do your members on average spend in the venue each year? If they spend for an example, $20 per week, that’s about $1000 a year. 1000 members spending $20 per week is a $1 million. What if they spend $40 or $50 more per week? Now imagine lots more members? What if we get them to buy an extra drink, or come along to a new show or special event like Bastille Day, American Independence Day or any other promotion you use to attract members. What happens then?
Grow
Your marketing budget is tied directly to revenue and should be percentage of this based on your margins. Margins for food, entertainment or other activities vary, so you will have to work out a percentage that works for your venue. Meaning your marketing budget may vary. However, you will not grow, attract new members or keep them if you do not pay attention to the things that make you successful. Your marketing spend is to keep reminding them of your club or pub and giving them all the good reasons to keep coming back.
cheers
Nigel Rawlins
Related posts:
- How much to spend on advertising
- Get Serious, Budget for Serious Club Marketing
- How one club brought in an extra $200 000
Posted in Clubs & Pubs, Costs, Membership, Revenue, Strategy
Tags: American Independence Day, Bastille Day, community dividends, Costs, Marketing, marketing budget, marketing spend, Membership, money, Revenue, reward