Background. What is STAR? U.S. Figure Skating Webinar Rink Relations
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1 U.S. Figure Skating Webinar Rink Relations Background «Chief Operating Officer STAR «20+ years in the ice arena industry Mgmt. & Ops «Washington, Arizona, Pennsylvania, New Jersey «Privately Owned & Operated Non-Profit & For Profit «Figure skating club board member, youth hockey association board member, learn to play hockey and Basic Skills instructor What is STAR? Serving The American Rinks (STAR) is a membership association that provides education, training, and new resources to facilities, individuals and vendors in the ice rink and arena industry. Created as a joint venture between the U.S. Figure Skating and USA Hockey in «Five members of U.S. Figure Skating serve on the STAR board of directors 1
2 Mission Statement To Be The Premier National Organization Designed To Foster The Development, Growth and Success of Ice Skating Rinks In The United States Objectives «Provide Education & Resources For The Ice Arena Industry «Promote All U.S. Figure Skating & USA Hockey Programs (NGB) «Provide Direct Support For NGB Events «Strengthen Relationships Between User Groups & Ice Arenas Did you know? The Air We Breathe SKATING Magazine April 2011 «CO & NO2 «Where does is come from? «Indoor Air Quality monitoring «Air exchange / ventilation «Equipment maintenance What Makes Good Ice SKATING Magazine May 2011 «Ice temp «Water quality «Humidity «Ice thickness «Hot water not cold Why? POLL Please take a moment to respond to the following question 2
3 REVENUE EXPENSES FACILITY & FIXED EXPENSES PERSONNEL SERVICES UTILITIES VARIABLE OPERATING COSTS DEBT SERVICE Role of the Rink Manager Maximize Revenue and Minimize Expenses = Profit «Create new and keep existing customers «Sell all available prime time ice at full rate «Sell as much non-prime time ice as possible «Generate revenue from other sources «Control fixed and variable expenses Challenges «Finite Commodity = Prime time ice «3,280 prime time hours vs. 8,760 total hours year «Supply & Demand Demand usually exceeds supply Ice Rink Business Seasonal Business «Fall/Winter 28 Weeks (September to Mid-March) «Spring 12 Weeks (Mid-March to Mid-June) «Summer 12 Weeks (Mid-June to August) Seasonal Revenue «Fall/Winter 70% «Spring 20% «Summer 10% Year-round Expenses «Debt Service «Utilities «Taxes «Insurance ADULT HOCKEY - ICE RENTAL $308, YOUTH HOCKEY $140, PUBLIC SKATING $125, BASIC SKILLS / CLASSES & CAMPS $57, LEARN TO PLAY HOCKEY $55, FIGURE SKATING / FREESTYLE $26, GROUP SALES $21, BIRTHDAY PARTIES $20, DROP-IN HOCKEY / STICK & PUCK $15, PRIVATE ICE RENTAL $16, FIGURE SKATING / SHOWS & COMP $5, TOTAL%REVENUE $790, PROPERTY TAX $42, MARKETING / ADVERTISING $7, EQUIPMENT REPAIR $5, BLDG REPAIR & MAINTENANCE $35, MAINTENANCE AGREEMENTS $8, JANITORIAL SUPPLIES $4, DISPOSAL $3, TELEPHONE / INTERNET $5, PROPERTY/LIABLITY INSURANCE $18, Total - FACILITY & FIXED EXPENSES $128, SALARIES & WAGES $138, PAYROLL TAXES - FEDERAL $10, PAYROLL TAXES - OTHER $9, EMPLOYEE BENEFITS $19, EMPLOYEE TRAINING $1, Total - PERSONNEL SERVICES $178, ELECTRICITY $89, NATURAL GAS $19, WATER & SEWER $13, Total - UTILITIES $121, OFFICE SUPPLIES $8, OPERATING SUPPLIES $23, EQUIPMENT RENTAL EXPENSE $1, PROFESSIONAL FEES $22, PROGRAM EXPENSES $5, B & O TAX $18, Total - VARIABLE OPERATING COSTS $78, BUILDING MORTGAGE P&I $255, Total - DEBT SERVICE $255, TOTAL%EXPENSES $761, NET%INCOME $29, % 3
4 Ice Rink Business How much should an hour of ice cost? «$761K / 8,760 (365 days x 24 hours) = $86.87 «$761k / 4,212 (52 weeks x 81 hours) = $ «$761k / 3,280 (28 weeks x 70 hours) = $ (12 weeks x 60 hours) (12 weeks x 50 hours) «REALISTIC - $761k / 2,460 (3,280 x 75%) = $ Most Common Issues «Skating Club wants more ice but can t seem to get it «Often can not afford to pay full rate «Ice time already using is not being maximized «Little effort to generate new customers «Entitlement - We should get the same as others «Many managers do not fully understand the sport of figure skating «Many club leaders do not understand the rink business Communication «Communication between the club and the rink manager must be open, honest and positive «In almost every instance misconceptions come down to a lack of understanding of each other s concerns «Rink Liaison One point of contact «Finding common ground with your rink is a good first step toward a successful relationship 4
5 Common Ground «Meet regularly with the rink manager to discuss the goals of the club as well as the goals of the rink «Determine how you can help each other reach those goals «Remove the emotion from discussions focus on your club business, not other user groups «Provide feedback positive & negative «Suggest possible solutions to problems «Be part of the solution not the problem Value of a Skating Club «Operate like a small business «Strong leadership «Maintain a safe environment for all members «Offer multiple programs and events «Active within the rink and community to promote the sport «Foster healthy relationships coaches, parents, rink staff «Focus on membership growth, development, retention Home Skating Club MR 2.04: The principal skating headquarters of a club shall be the address of the rink in which the club conducts the majority of its skating sessions. This address shall be recorded in the U.S. Figure Skating database under the club s name. A club may name only one principal skating headquarters. B. To maintain a club s principal skating headquarters, a Facility Usage Form must be completed each year by the club president, certifying the facility is the principal skating headquarters of said club and said club uses ice at the facility certified as the principal skating headquarters in compliance with MR 2.04 (A). «Have you discussed this with your rink operator? 5
6 Figure Skating Programs That Benefit Rink & Club «Group Skating Lessons Basic Skills Program «Holiday Skating Shows & Exhibitions «In-House Basic Skills Competitions «Regional Skating Competitions «Synchronized Skating Teams / Theater On Ice «Summer Skating School / LTS Camps Figure Skating Programs That Benefit Rink & Club «Why are these programs beneficial to the Rink? «More skaters on the ice = more revenue for the rink «Ice fees, concessions, pro-shop, other programs «Why are these programs beneficial to the Club? «More skaters on the ice = negotiating power with rink «Reduced cost to individual club members «More skating opportunities for club members Basic Skills Summary ( 6 Weeks $75) Session Participants Revenue Instructors USFS Fee Net 1 Ice Time 9/15-10/27/08 Monday 44 $ 3, $ $ $ 1, Hours Hourly Rate Specialty 0 $ $ $ /18-10/30/08 Thursday 40 $ 2, $ $ 1, Fall Festival Competition 74 $ 1, $ - $ 1, $ $ 5, $ 1, $ $ 3, $ /3-12/15/08 Monday 49 $ 3, $ $ $ 2, Specialty 0 $ $ $ /6-12/18/08 Thursday 55 $ 3, $ $ 2, Lights on Ice Show 58 $ $ - $ $ $ 7, $ 1, $ $ 5, $ /5-2/9/09 Monday 65 $ 4, $ $ $ 2, Specialty 0 $ - $ - $ - 1/8-2/12/09 Thursday 77 $ 5, $ 1, $ 4, $ 9, $ 2, $ $ 7, $ 1, /23-3/30/09 Monday 78 $ 5, $ 1, $ $ 4, Specialty 0 $ - $ - $ - 2/26-4/02/08 Thursday 78 $ 5, $ 1, $ 4, /9/08 Exhibition 30 $ $ - $ $ $ 11, $ 2, $ $ 8, $ 1, /6-5/18/09 Monday 56 $ 3, $ 1, $ $ 2, Specialty 0 $ - $ - 4/23-5/28/09 Thursday 75 $ 5, $ 1, $ 4, $ 9, $ 2, $ $ 6, $ 1, /01-7/6/09 Monday 43 $ 3, $ $ $ 1, Specialty 0 $ - $ - $ - 6/4-7/9/09 Thursday 34 $ 2, $ $ 1, /16/09 Competition 89 $ 1, $ - $ 1, $ $ 5, $ 1, $ $ 3, $ /20-8/24/09 Monday 52 $ 3, $ $ $ 2, $ 3, $ $ $ 2, $ Basic Skills Totals , $ 12, $ 3, $ 36, $ $ $ Skating Show & Comp Totals 251 5, $ - $ - $ 5, $ Expenses July Skating Camp 14 1, $ $ $ $ $ 1, August Skating Camp 23 2, $ 1, $ - $ $ 1, , $ 2, $ $ $ Grand Total 1,034 62, $ 15, $ 3, $ 43, $ $
7 Figure Skating Programs That Benefit Rink & Club Synchronized Skating Teams / Theater On Ice «Example CCIR 3 Full Rate «Annual Synchro Invitational Teams «Annual TOI Showcase 6-8 Teams «Both during slower time of year Late Spring Regional Skating Competitions «Example PNIC 180 Skaters & 30+ Hours Full rate «During slowest time of year - Summer Maximize Ice You Have Today These programs are great but we can t get more ice «How are you using the ice you currently have? «If you aren t filling the ice you currently have how can you expect to get more? «Possible Solutions: Get creative! «Synchronized Skating Teams Share Ice (2 3 Teams) «TOI Shares Ice With Synchro Team «Freestyle Split Ice/Time Slot Up «Privates, Semi-Privates & Bridge Program «Skills: Spins, Jumps, Edges, Stroking, etc. «Disciplines: Singles, Pairs, Dance «Levels: Seniors, Juniors, etc. Ways to get more ice If your club can t afford to buy ice Barter System «Rink sponsored freestyle sessions & test sessions «Board Members «Enforce rules/etiquette, check receipts, collect waivers, music «Skating Instructors «Public skate & birthday party free lessons «Basic Skills lesson program «Volunteer Parents «Check-In: Basic Skills, Test Session, Competitions, Shows «Distribute marketing materials: Schools, Churches, Clubs, etc. 7
8 «NO. 1 Rink Industry Publication «Valuable Communication Medium For U.S. Figure Skating «RINK Magazine Is A Benefit Of STAR Membership « «Premier Annual Ice Industry Event «Dearborn, Mich. May «10 Educational Courses (Skating Director Course) «RINK EXPO TRADE SHOW (Over 70 Ice Industry Vendors) «Valuable Networking Opportunity for U.S. Figure Skating Members « Help STAR Serve Your American Rink «Use STAR as a resource «Encourage your rink operator to educate their employees through STAR Programs «Share Positive Experiences Jeff Theiler jefft@starrinks.com 8
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