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Advice for Sports Facilities that Reach Max Capacity

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Sports Facilities Advisory – Advice for Facilities that Reach Max Capacity

Across the United States, many sports facilities are enjoying unprecedented success. From small community centers to large sports tourism facilities, many facility managers are facing the problem of maxed out capacity at their facilities. Too much success is a great problem to have, but it is a problem nonetheless. Read on in today’s blog from the pros at Sports Facilities Advisory for advice on addressing capacity issues at your facility.

Raise Prices

The classic solution for businesses when demand outstrips supply is to raise prices until demand is balanced with inventory. This is an option for sports facilities as well. If you are having to turn away new applications for membership, it may be time to consider raising prices to increase revenue while balancing demand.
This step should be taken with great care, however. Any misstep in pricing can have unexpected consequences. Continually assess your customer data and make incremental price changes over time, so you can keep a firm balance of supply and demand.

Reduce Expenses

Another common solution for businesses with more demand than supply is to reduce expenses. The idea is that you spend less per customer — while balancing demand — thus increasing profits overall. This is a similar approach to the previously discussed strategy of raising prices; both strategies are meant to increase profit-per-customer while counting on excess demand to remain at max capacity.
For example, you might reduce expenses by keeping fewer staff members on the payroll, cutting your advertising budget, and spending less on landscaping services. Some customers may notice the impact of your spending cuts, and they may choose to cancel their membership at your facility. But with the excess demand at your facility, you can theoretically afford to lose a few of the more discerning members as you replace them with new customers.
This approach to balancing demand and supply is quite risky, and it is not generally recommended for sports facilities. Your reputation for high-quality facilities and excellent customer service is hard-earned. So be extremely careful when cutting corners to save money at your facility, even when customer demand is sky high.

Expand Facilities

The ideal solution to excess customer demand is simply to increase your supply to meet it. If you have the ability to expand your facility, your services, or your membership base, this is probably the safest route to take. This may mean making major changes, such as building an expansion on your existing facility. It may mean something smaller, such as increasing the hours your facility is open so your business can accommodate more customers.
Since the market for sports facilities is steadily increasing across the country, expansion seems to be the best option over the long run. However, any strategy for making significant changes to your business structure requires a serious analysis of current and projected metrics.

Grow Strong, Grow Smart, with Sports Facilities Advisory

When business at your sports facility rapidly grows, it can be tempting to do nothing and simply hold steady. This is understandable, but it’s not likely to be a successful long-term solution. If you are unsure whether you should raise prices, reduce expenses, or expand your facility, reach out to the team at Sports Facilities Advisory for expert advice and analysis. We will help to optimize your business for long-term growth. Give us a call at (727) 474-3845 or contact us online.

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