The following comments from a club executive reveal how beverage costs are being more closely monitored. Just over the past five years, controls have been tighten significantly at a golf and country club in the Southeastern part of the country. More careful purchasing from vendors is undertaken. A purchasing agent position has been established to coordinate all purchases. The biggest expense of virtually all clubs is labor.
Labor costs includes salaries, wages, benefits, and related payroll taxes.
According to published club industry statistics, labor costs are approximately 50 percent of the average club's total revenues. Nearly 8 percent of the respondents indicated they take action to correct labor costs when the differences are less than 1 percent. By comparison, only 4.1 percent managed this cost as closely in 1985. At the other extreme, 15.1 percent and 11.4 percent of the clubs in 1985 and 1996, respectively, allowed a difference in labor costs of greater than 5.9 percent. Comments from respondents illustrate the tightening of controls in the labor cost area.