As this was being written on Friday, the price of gas was said to be going up once again, reaching an all-time high in various Canadian cities.
Turmoil in Iraq was the convenient reason for the sharp increase, but having seen this occur before, it wouldn’t have anything to do with the price going up just as a summer weekend gets going, would it?
Whatever theory you buy into, it isn’t good news for people stopping at the pumps to fill up, meaning that travel this summer may be limited and people may start tightening the purse strings on discretionary income for things such as green fees and pro shop purchases.
Less money coming in wouldn’t be good news with the money going out in larger quantities as golf operators fuel up their vehicles and equipment, but rising prices aren’t exclusive to the gas pumps as Canada’s inflation rate jumped to 2.3 per cent, according to this story from CBC.
The price of beef has gone up 10 per cent since the beginning of the year, while the price of fresh or frozen pork has risen 12.2 per cent over the same period, so that will affect food and beverage operations. Overall energy prices have increased 8.4 per cent.
When budgeting, it’s common practice to work inflation into our calculations even when it is low as was the case earlier this year, but did the recent spike catch the industry off-guard? That bring us to this week’s GNN Poll.
Was the golf industry prepared for such an increase in the cost of doing business? You can cast your vote below or on the GNN home page and if you’d like to expand your thoughts on this issue, pleas do in the Comments section below.
Was the golf business where you work prepared for the sudden rise in inflation, or was it caught off-guard?
- Nobody could have predicted it would go up like that so fast (79%)
- We budgeted for it (21%)