447: What Your $300K Racket Budget Really Gets You w/ Ed Shanaphy

Private Club Radio Show

Ever wondered why your club's racket department seems financially constrained? In this eye-opening episode, consultant and racket management expert Ed Shanaphy lifts the curtain on the numbers rarely discussed in polite club company.
The financial anatomy of a racket department is more complex than most realize. Shanaphy reveals that nationally, racket departments typically receive just 3% of a club's overall revenue – translating to about $300,000 for a club generating $10 million. More critically, payroll shouldn't exceed 55% of that figure, leaving just $165,000 to staff an entire department. These constraints explain why directors must be creative with limited resources.
Rather than defaulting to discounts, Shanaphy advocates strategic revenue growth through thoughtful promotions. "If you come to your ladies practice, 50% off Sophie Bella clothing," he suggests as an example that drives both participation and sales. This cross-selling approach delivers more value than random price cuts while building stronger member engagement.
The conversation explores compensation structures, housing considerations, and how top professionals approach the business side of racket sports. Shanifee draws important parallels to golf management, noting that understanding operations beyond teaching is crucial for long-term success. "I strung a lot of rackets at midnight so members had them at 6am the next day," he recalls, emphasizing how these experiences shape exceptional club professionals.
Looking toward 2025, Shanaphy identifies dynamic pricing as an emerging trend. Just as hotels and airlines adjust prices based on demand, forward-thinking clubs are considering charging premium rates during peak hours while offering discounts during traditionally slower periods. This approach maximizes both revenue and facility usage – though implementation requires sensitivity at member-owned clubs.
Whether you're managing rackets at a prestigious club or simply curious about the business behind the sport, this conversation provides invaluable insights into creating sustainable, profitable racket programs that enhance the overall club experience.

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Chapters

1. Welcome to the Private Club Radio Show (00:00:00)

2. Racket Department Budgeting and Revenue (00:02:38)

3. Payroll Percentages and Staffing Challenges (00:08:11)

4. Pricing, Promotions, and Growth Strategies (00:14:10)

5. Negotiating Packages and Compensation (00:23:16)

6. Dynamic Pricing and Industry Trends (00:34:59)

7. Club Investments and Future Outlook (00:41:41)