Over the past several days, we have received a great number of questions and inquiries regarding our Westwood 2020 project as well as our current policies and procedures. One such area we have gotten a number of questions on is our kids’ club – specifically regarding the Club’s policy on usage. Three years ago we changed our policy from charging members for ANY time their child was in childcare, to offering the first two hours free of charge, per day. This enhanced amenity was immediately wildly popular, however, some members have questioned the economic feasibility of this move, particularly now as we look to renovate this area of the Club.
In October of 2011 we had 999 memberships, 598 of which were in a “family” category. Today we have 1069, 652 of which are in one of those categories. So, of the 70 net new members, 54 (78%) are in our highest dues-paying categories, and Kim & Colleen will quickly tell you our kids’ club policy had at least some influence on those membership decisions. Those 54 new “family” members are paying an aggregate $163k/yr in dues ($106k of which are from non-tennis families btw), before any club spend.
For the fiscal year ended 9/30/2011, our kids’ club department posted revenue of $11k and expenses (payroll) of $34k for a net loss of $23k. Through 11 months of fiscal 2015, our kids’ club department posted revenue of $23k and expenses of $71k for a net loss of $48k ($52k if you annualize) – an increase of $29k/yr. So, if you attribute some portion of the increased loss in Kids’ Club to the policy change, how much of that $163k in new revenue is also attributable to the policy shift? That is a question we will not be able to confidently quantify, but as the current president and past treasurer, I can tell you our financial condition has improved GREATLY over that time span, and we have a lot of really enthusiastic, happy members.
What we don’t like is having to turn parents away at our kids’ club because we are at regulatory capacity, which we have been doing too frequently. Demand for our kids’ club is over our capacity because our members with small children are heavily utilizing the club, spending time and money enjoying our other amenities – which is great news!