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Case Study 1: Delivering the benefit to Club Members

Club 1 was in the ‘Top 25%’ for average turnover per machine per day when measured against its peers in the industry, but in the ‘Middle 50%’ for overall profitability and in the ‘Low 25%’ for net profit per machine per day.  Clearly, the Club was attracting good visitation levels and strong machine play, however, the high level of machine activity was coming at a cost.

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Case Study 2: Cost savings that drop to the bottom line

Club 2 was in the ‘Top 25%’ for overall club profitability, however, it was in the ‘Middle 50%’ for departmental profitability.  Upon further investigation, the CDOL system showed that catering and bar contribution levels were both in the ‘Low 25%’.  Conversely the gaming metrics were in the ‘Top 25%’ and overall overhead costs were in the ‘Top 25%’.  Strategically, this meant that the low overheads being achieved in the overall clubs operations and the profit from gaming operations were subsidising catering and bar operations.

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Case Study 3: Keeping the marketing budget in check with the industry

Club 3 had achieved consistent overall profitability in the lower end of the ‘Top 25%’ of clubs and its management concluded that this was due mainly to its high gross profit percentage.  However, in viewing the ‘Overhead Costs Trend’ from month to month, it became clear that there was scope for major improvements.  If the club could reduce its overhead costs to bring them in line with the industry leaders, it would be able to achieve even larger overall profitability than previously reported.

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In all of the above cases the clubs were able, through the use of the information provided by the CDOL system, to make more informed management decisions based upon a set of facts. Until recently, decisions that needed an industry perspective were largely done through perception and peer collaboration rather than a detailed and audited set of relevant measures.  CDOL provides the club industry with this set of relevant measures and in so doing gives participating clubs the opportunity to deliver increased bottom line performance for its members