While every ski area is looking for ways to squeeze more dollars from the business, the smaller ski areas must be extra clever. Pats Peak, N.H., watched four small ski areas within 50 miles go out of business over the past 10 years. To avoid the same fate, Kris Blomback, general manager of the area, is determined to bring in more income from existing programs instead of discount deals that offer instant gratification but may bring harm in the long haul.
Pats Peak’s main block of revenue comes from Learn to Ski and Snowboard programs for local schools. More than 10,000 children from 103 schools come to Pats Peak after school. The large chunk of income, which flows from the beginning of November through early December, when kids sign up, is fuel to get the season off to a fast start.
There are two sessions for schools. The first begins in early January and runs for five weeks, and the second session begins mid-February for another five weeks. The sessions help fill weekdays during March, traditionally a slow time.
Although, the programs are gaining in popularity and are good money-makers, management figured there were other ways to increase revenues.
An à la carte application menu of gear, passes and services that parents could purchase at the time they enroll kids in the Learn to Ski and Snowboard program was created. Options and accessories are listed on the application so parents can check off the items they want for their children as part of the package. This benefits both parties—Pats Peak brings in revenue up front and parents can one-stop-shop for a helmet, goggles and cafeteria coupon books, at a savings. Plus, parents get the peace of mind that their child will be warm and fed while they are taking lessons at the ski area.
The cost for the five-week program in which kids ski or snowboard once a week is $70. It’s an additional $20 bucks for lessons over the five weeks and, if they want rentals, it’s an additional $45 for skis and $70 for snowboards. To date, Pats Peak averages 1,500 kids a day in the program and roughly half rent equipment. Cafeteria sales average $8,000 to $10,000 a night.
The Learn to Ski and Snowboard program application also offers discounted tickets for parents for weekdays or weekends to make it easier for kids and parents to ski together. A special Practice Makes Perfect ski pass for students in the program is discounted at $150, instead of the normal $495, and good Sunday through Friday. This encourages them to come on Sundays and slow times when they are not in the program. The application also markets the availability of day care, letting parents know they can come ski with their older kids while the younger ones are cared for.
In 2000, Pats Peak sold $32,000 in helmets ordered from the Learn to Ski and Snowboard application. Also a big seller were the Practice Makes Perfect Passes, bringing in $12,000. More than $50,000 in food coupon books were also sold through the application.
To be sure that Pats Peak is not left holding the bag on inventory, the helmet order is placed early in season after the applications are in. The exact number of helmets are ordered and delivered, which takes great coordination with the helmet supplier, in this case UVEX, but is worth the effort in overhead savings. Any extra inventory is transferred to the ski shop and sold at a discount.
One tricky aspect of the helmet order was getting the correct size without trying on the helmets. Working with UVEX, Pats Peak designed the application with a tear-off sizing tape that parents wrap around their child’s head to get measurements.
The à la carte application has been such a success that next year Pats Peak may offer more options—hats, gloves, ski pants, jackets, skis, boot and other accessories—through the program.
