Monday, August 25, 2014

It Is Just Time

       It is always interesting to me to see the cycles that run through the market here in Philadelphia that I have been calling on for almost 20 years . I can't remember the last time when a topic has been so often discussed as the need to address an aging equipment fleet. Some clubs have more frequently been using  the option of leasing to catch up and stay current, while other clubs have not begun to lease and are not interested in considering it. Just this past week alone, I was asked numerous times about how do you approach your club managers or officials to make them consider making a large investment. The reality is no matter which supplier you choose, there is a large amount of money involved.
       I really feel this all leads back to 2008 & 2009's economic downturn which resulted in many clubs not continuing their equipment replacement plans. It seems to have caught up to many clubs all at the same time. I am hearing more and more in conversations about units with more than 4000, 5000, even 8,000 and 9,000 plus hours on units. To me, when these units need repair, it is tough to justify putting large amounts of money into something this far into it's life cycle. When your club does not have the capital on hand and leasing is not a road your ownership wants to follow....what options do you have?
       Does your club lease any other equipment (namely golf carts)? Is there an member at your club who works in  leasing to use as an advocate? Have you done your homework unsolicited to see what type of numbers you are looking at if you were able to lease your high usage units vs the continuing increase in your repair and maintenance budget? Is there an opportunity to beat the price increases coming regarding the new Tier 4 products by getting a pre-Tier 4 unit? What does down time really cost you? If your technician had more time to focus on day to day routine service rather than trying to find duck tape, bailing wire and some chewing gum to get the rough unit to just get you through the day how much better a product could you produce? Is off-lease units something you need to consider to bridge the gap? Does the "No Pay 'til May" programs make sense to do something now?
       There are many variables that need to be considered, but a little homework now may go a long way to making your job easier in the future!


WJC

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