I wish to advise Members that the price of beer will increase by 6% on Monday 1st February 2021.
So Members are properly informed as to why this increase has been implemented and how the Club came to 6% I have provided the following considerations.
Twice a year Lion and Carlton & United Breweries (CUB) increase their prices, once in February and again in August. Back in February 2020 and in August 2019 prices increased, however the Club did not pass on these increases to customers. In August 2020 Lion and CUB did not increase their prices due to COVID. Another CUB and Lion increase is due next month (February 2021) and this will be absorbed into the 6% Club increase.
Both Lion and CUB price increases are always in the range of 2.5% to 3%. To help Members defray this price increase, the Club will reactivate our Member Loyalty Rewards Program on 1st February 2021 to align with the date of the price increase.
I have provided an example below of how the price increase of beer in hand with the Member Loyalty Rewards Program will impact a Golf Club Member.
The current price of a pot of Carlton Draught is $5. The 6% increase from the 1st February will take the price to $5.30. The benefit to Members will come when you swipe your Golf Club Members card, which will reduce the price of the pot of Carlton Draught by 10% making it $4.80.
It is important to note that the only way this discount can be redeemed is if you swipe your Members card upon payment of your beverage.
The other driver in these types of decisions is the cost of goods percentage of revenue, which are important budget considerations and benchmarks.
I am more than happy to discuss these considerations and this issue in general with any Member. I can be contacted directly on 0418 325 252.
Michael Hodge
Chief Executive Officer
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