Presented by:Kevin Post

of Counsilman-Hunsaker

} Importance of Aquatics} Industry Hurdles – Economy} Sustainable Revenue Planning} Maximizing Your Facility Investment

Source: Health Assistant, (2008, Aug.) “12 reasons why swimming is good for our health.” Health Assistant;

Swimming supports our health & boosts our immune system – Water temperatures that are lower than ones body temperature cause the body to adapt, creating resistance to illness, like the flu and colds. It also helps breathing, especially for those with asthma

Swimming aids in rehabilitation of injuries and post operations - Water allows people to move with less body weight due to its unique gravity condition

Stress Management –Swimming supports relaxation and recovery, which leads to a more balanced lifestyle

Swimming is part of physical education and water safety – It’s often part of a school’s curriculum. Individuals that desire to participate in water sports such as snorkeling or white water rafting must be able to swim

Source: Health Assistant, (2008, Aug.) “12 reasons why swimming is good for our health.” Health Assistant; Luebbers, Matt (2009, March) What’s good about swimming. About.com.

Swimming is a full body exercise: It tones &

strengthens our muscles, cardiovascular and

respiratory system. A person can burn up to 900 calories per hour

Swimming has a very low risk of injury

Swimming is affordable and can be substituted

for other sports

} Regular swimming is one of the best ways to build and preserve muscle

} An Indiana University study compared 172 U.S. Master Swimming competitors ages 21to 88 with non swimmers of the same ages ØEvery 10 years, the

swimmers had a higher amount of muscle mass

Source: Stager in Men’s Health Magazine, Swim for Life

} A study showed, after simply sitting chest deep in warm water of 102F for 25 minutes, a decrease in the body’s stress level and cardiac irritability occurred and mental focus, memory and improved frame of mind resulted

“Submersion to the neck increases cardiac output by more than 30% in a sedentary individual. The implications of that single fact are so broad that medical science has not caught up with it”

- Dr. BeckerSource: Stager in Men’s Health Magazine, Swim for Life; WaterShapes Article Therapy Power

1. Swimmers seem to do better in school than non-swimmers

2. Swimmers develop life skills such as sportsmanship, time-management, self-discipline, goal-setting and an increased sense of self-worth from participating in it

3. When Osteoarthritis patients complete the same exercise in water versus land, there is less pain and energy expenditure

4. A 32 year study of over 40,000 men ages 20 to 90 showed…ü Swimmers were 50% less likely to die

during the study period than walkers or runners

Source: AARP; Stager in Men’s Health Magazine, Swim for Life;

} Swimming is the 3rd

most popular sport or exercise activity

} There are approximately 314 million visits to recreational water sites each year

Source: Violations Identified From Routine Swimming Pool Inspections—Selected States and Counties, United States, 2008, JAMA. June 23/ 302010;303(24):2468-2470

} A 2008 National Sporting Goods Association (NSGA) study showed…

} Swimming placed 2nd for attracting the highest number of female participants

} Approximately 33.3 million females ages 7 and up participated in swimming

Source: NSGA, Exercise Walking, Swimming and Exercising with Equipment Lead Female Participation, Nov. 2009

} Water-based exercise is the fastest growing fitness choice in the U.S.

} In 1983 there was nearly 200,000 participants

} 1988 – 2.2 million} 2004 – 5.8 million} 2007 – 7.2 million

◦ A 3500% increase from 1983 to 2007

Source: Aquatic exercise statistics - how popular is non-swimming aquatic exercise?, the aquatic therapist, April 30, 2009; WATER AEROBICS AS AN ALTERNATIVE TO LAND BASED EXERCISE, College Sports Scholarships, accessed July 13, 2010

How many individuals do you think participated in water based

exercise in 2007?

} Within the last decade demand for higher quality and a unique pool experience has risen

} There are four types of aquatic facility users: competitive, recreational, fitness and instructional

} Each of these groups require specific areas, features and services to fulfill their needs and desires

Source: Scott Hunsaker, Counsilman Hunsaker, Pricing Pools, Read how to determine how much your new pool will cost, As seen in Athletic Business magazine, 1998

www.cbpp.org/files/9-8-08sfp.pdfSource: Center on Budget and Policy Priorities 1/9/12

Industry HurdlesIndustry Hurdles

} Not as bad as last year but still down from 2008 -2.0%

-4.2%

-11.8%

-0.2%

5.0%

10.9%5.8%

1.6%

-15%

-10%

-5%

0%

5%

10%

15%

2011 2012

Source: AIA Consensus Construction Forecast Survey, as of January 2011

Annual Percentage Change: 0%=2010

Total Non-residential Commercial InstitutionalIndustrial

Decreasing BudgetsEconomyDemographicsPoliticsCulture

Your Best Strategy Is To Be Indispensable

Aquatics

}Definition of Success}Planning for Success}How to Measure Success

}Financial}Visits}Program}Politics

}Financial• Fiscal

Sustainability� Financial Models

• Subsidy• Break Even• Positive Cash

Flow� Recapture Rates

}Visits◦Attendance◦Market Share

} Program (Activities = Space)◦ Activities� Swim lessons, LG

Training, WSI, kayak clinics, etc.� Life Skills� Something for everyone

} Politics • Philosophical

Governance� Private / Public �Neighbors�NIMBY’s� Special Interests

Expenses are fixedto manage financial results focus on

Revenue

} Business Cycles} Revenue/Business Plan} Basic Budgeting Procedures} Pricing } Revenue Throttle

} Prosperity◦ Develop plan for lower activity◦ Beware of linear budgets◦ Develop new markets◦ Increase Pricing◦ Answer “what’s next”

} Warning◦ Reduce budget goals◦ Begin workforce reductions◦ Weed out inferior programs◦ Avoid long term supplier contracts

} Recession◦ Combine divisions◦ Avoid long term purchase◦ Develop training/marketing

programs◦ Bid for alternate vendors

} Growth◦ Hire Top People◦ Implement training/marketing

programs◦ Add new programs

} Define Financial Success◦ Incorporate the Business Cycle Model◦ Identify Revenue Streams ◦ Identify Policy Issues Related to Revenue� Pricing Policies� Service Levels

◦ Set Goals, Recommendations and Strategies for Increasing Revenue

◦ Identify Responsibilities for Completion

Planning for Success

BUDGET

Revenue:

Min # of participants (list) 6 X $45.00 $270.00

$270.00Expenses:

Wages: 1 X 8 X 1 X $15.00 $120.00Matching: $120.00 X 0.1300 $15.60Flyers: 0 X $0.00 $0.00shirts 0 X $0.00 $0.00Other: $0.00

$135.60

Balance: $134.40

Balance must be at least 20% of revenue 49.78%

Revenue per visit $2.80

Class Name:

Course Description:

Level 1

Level 2

Level 3

Level 4

Level 5

Level 6

Day(s)/TimeClass Dates:

Before May 1 After May 1Cost: $45.00 $50.00

Registration Deadline:

Min/Max: 6/10

Instructor(s): 1

Stroke Development: Builds on skills with practice in deeper water.

June 6-16, 20-30, July 11-21, July 25- Aug 48-8:45am, 9-9:45am, 10-10:45am

May 27, June 10, July 1, July 15

Learn-to Swim

Six progressive levels help swimmers of varying ages and abilities develop their water safety, survival and swim skills. (6 years to adults)

Introduction to Water Skills: Helps participants feel comfortable in the water.

Fundamental Aquatic Skills: Gives participants success with fundamental skills.

Stroke Refinement: Provides furher coordination and refinement of strokes.

Swimming and Skill Proficiency: Refines strokes so participants swim with ease. Level 6 features menu options to prepare participants for advanced activities, including the Water Safety Instructor course, competitive swimming and diving.

Stroke Improvement: Develops confidence and improves skills.

}Methods of Determining Fees/Pricing ◦Cost Based◦Market-Based◦Demand Oriented◦Monitoring Annually

} Revenue Throttle

• Resident & Non-Resident� Preference To Residents� Allows Non-Residents to pay for a better experience� Manage Non-Resident usage to achieve financial / service goals

• Discount Programs� Price Non-Resident Above Market Price and Discount

• Puts pricing control in the field• Wait Lists� Sends a message of success (Non Resident)

• But add them quickly• Bundle Purchases� Bundle and discount guest passes as holiday gifts

“Not everything that counts can be counted, and not everything that can be counted counts.”

Albert Einstein

Metrics and Measurements

} The Value of Sharing (Is It Worth The Effort?)• Measuring Success and Communicating It• Transparency� Staff, Political Leaders, Community = Trust� Builds & Empowers Teams� Investing in the future

• Not leader dependent• Ability to manage change� Competency, empowerment

• Tying results to goals

} Tools• Consistent, Clear, Meaningful Information• Appropriate Tools for Appropriate Audience� Board Members� Director / CEO� Middle Management� Public Information

• Measure YOUR definition of success• Make It Clear� Much of the data we share is difficult to

understand.

How To Measure SuccessHow To Measure Success

} Accounting Based} Is this the best

form of communication for◦ Political Leadership?◦ Senior Management?◦ Community?

} Points of confusion◦ Seasonality / Short

Term = Monthly } Missing Big Picture

◦ Multi year perspective

PARK FUNDBUDGET Mid Year Projected ACTUAL Over(Under) Projected Over(Under)

2006 Expecation YTD 2006 6/30/06 Budget Year End Budget

- Park Sales Tax 2,035,000 44.87% 913,112 858,169 (54,942) 1,912,553 (122,447)

SALES TAX 2,035,000 44.87% 913,112 858,169 (54,942) 1,912,553 (122,447) - -

Contracts 500 257 5,640 5,383 9,025 8,525 Catering 7,500 4,687 3,370 (1,318) 5,392 (2,108) Vending 7,000 4,375 1,797 (2,578) 2,875 (4,125)

CONTRACT REVENUE 15,000 62.50% 9,319 10,806 1,488 17,292 2,292

Rental Income 220,000 112,939 94,982 (17,957) 185,021 (34,979) Rental - Outdoor 7,500 3,850 3,205 (645) 6,243 (1,257)

Rental - Other 1,500 770 - - (1,500) Extra Fees Rental 21,000 10,781 22,005 11,224 42,864 21,864

RENTAL 250,000 51.34% 128,340 120,192 (7,378) 234,127 (15,873)

Youth 9,350 4,313 4,869 555 10,554 1,204 Adult 209,700 96,742 94,909 (1,834) 205,725 (3,975)

Senior 101,750 46,941 57,531 10,590 124,706 22,956 Family 1,145,300 528,368 567,087 38,719 1,229,228 83,928

ID Cards 3,000 1,384 520 (864) 1,127 (1,873) Processing Fees 30,900 14,255 16,438 2,183 35,631 4,731

MEMBERSHIPS 1,500,000 46.13% 692,004 741,354 49,350 1,606,971 106,971

Tot Care 6,000 3,042 1,786 (1,256) 3,522 (2,478) Concessions 141,000 71,481 52,547 (18,934) 103,652 (37,348)

Pro Shop 3,000 1,521 401 (1,120) 791 (2,209) POS REVENUE 150,000 50.70% 76,044 54,734 (21,310) 107,965 (42,035)

Youth 113,500 54,294 51,651 (2,643) 107,976 (5,524) Adult 80,000 38,269 44,818 6,549 93,691 13,691

Family 500 239 109 (130) 228 (272) Senior 6,000 2,870 3,240 370 6,773 773

DAILY FEES 200,000 47.84% 95,672 99,818 4,146 208,668 8,668

Fitness 63,000 38,507 42,646 4,139 69,771 6,771 Swim Lessons 52,500 32,089 35,442 3,353 57,986 5,486

Programs 34,500 21,087 15,526 (5,562) 25,401 (9,099) AQUATICS 150,000 61.12% 91,684 93,614 1,930 153,158 3,158

Personal Trainers 30,000 16,078 2,809 (13,269) 5,241 (24,759)

Specialty 4,000 2,144 3,254 1,110 6,072 2,072 Programs 365,000 195,613 256,412 3,400 478,448 113,448

Des Peres Dash 1,000 536 3,400 3,400 6,344 5,344 FITNESS 400,000 53.59% 214,370 265,875 (5,358) 496,105 96,105

PreSchool 25,000 13,441 16,584 3,143 30,846 5,846

Youth 10,000 5,376 6,262 885 11,646 1,646 Adult 13,000 6,989 9,601 2,612 17,857 4,857

Senior 1,000 - - - - (1,000) Camps 95,000 51,076 30,579 (20,497) 56,876 (38,124)

Special Events 6,000 3,226 2,859 (367) 5,318 (682) GENERAL RECREATION 150,000 53.76% 80,108 65,884 (14,224) 122,544 (27,456)

General 16,000 8,493 8,639 146 16,274 274

Indoor Adult 4,500 2,389 4,996 2,607 9,412 4,912 Indoor Youth 18,000 9,555 4,563 (4,993) 8,595 (9,405)

How To Measure SuccessHow To Measure Success

} Tools – Financial, Visits• What can everyone understand? (Up is Good – Down is bad!)

} Tools - Programs◦ Participation/Attendance◦ Satisfaction Surveys

Creep, Crawl, Walk, Run…

Define Success

Plan for Success

Measure Success

} Decide Best Use of Money} Physical Obsolescence Addressed} Functional Obsolescence Addressed

} What We’ve Heard…◦ Nothing goes further than cleanliness◦ Maximize opportunities in open water areas� Floatables, water basketball, volleyball and skill development activities

◦ Signage opportunities� Branding and naming of your facility can provide new life

◦ Addition of dry play areas◦ Expand concessions� If outsourced rebid yearly� Use pre-packaged foods when necessary

◦ Addition of free shade and rental shade areas◦ Landscaping additions◦ Maximize attendance with discounted coupons◦ Partnership opportunities

Maximizing the Value of Open Water

• Skill Development

• Skill Development

Maximizing the Value of Open Water

Maximizing the Value of Open Water • Waterslides

Turning Lap Water into Recreational Water

• Springboard Diving Clearances

1M Springboard 3 M Springboard

Turning Lap Water into Recreational Water

• Zero Entry and Play Structure Clearances

3’-6” Water Depth

Zero Entry

Turning Lap Water into Recreational Water

• Waterslide Clearances

Turning Lap Water into Recreational Water

• Zero Entry/Wave Pool/Lap Lane Combination

Theming AdditionsTheming Additions

Shade, Deck and Grassy Areas

Rolla, MO 1972

Complete Pool Replacement

} Recreation – active participation} Leisure – for relaxation and socialization} Therapy, Rehabilitation and Senior involvement} Safety – through lessons and certification} Fun – excitement, entertainment} Skill Development – extreme sports trend} Structured Programming – learning and

developing} Competition – the challenge, victory and defeat

“Families that play together,stay together!”

Sunset Hills, MO

Beachwood , OH

Killeen, TX

Fruita, CO

Abilene Christian University (3,000 SF)

Water Basketball

Water Volleyball

25 Yard Fitness Lap Lanes

Active Water Area

Passive Water Area Passive

Water Area

} Build in Flexibility

◦ What can you NOT get more of?� Land?

◦ What can you change?� Community Support� Facility Use� Customer Satisfaction� Program offerings

} Planting Seeds For The Future

}Where To Look◦ Entrepreneurs◦ Resort Industry◦ Universities

Kevin PostStudio Director, PrincipalCounsilman-Hunsaker10733 Sunset Office Dr.St. Louis, MO 63127kevinpost@chh2o.com