1. chapter 19 Core Product Extensions & Areas

2. Core Product Extensions Revenue-generating products and services that complement the core product are called core product extensions. These extensions play an important role in meeting user needs. Core product extensions are similar to ancillary spaces in that they support the core product of the facility. They can take the form of commodity outlets, food services, child care, and equipment rental or checkout.

3. Commodity Outlets A core product extension that can enhance revenue generation for a recreation facility is a commodity outlet, which sells gifts, supplies, apparel, equipment, and specialty items. These outlets can provide purchasing opportunities to regular users as well as facility visitors. Common terms used to describe these operations include retail outlet, store, pro shop, specialty shop, and gift shop.

5. Commodity Outlet Operations The delivery responsibilities for a commodity outlet are to prepare and enhance the sale of items to users. Recreation facility managers should be aware of the following principles: merchandising, vendors, pricing, staffing, sales, displays, and enhancement of success.

6. Merchandising Merchandising requires a sincere commitment and enthusiasm from facility managers and employees in bringing the product to customers. Purchasers should take special interest in understanding product lines and how they might appeal to a particular customer base. It’s better to tell customers that the facility doesn’t carry their preferred item than to have too much inventory of items that don’t sell enough to make a profit.

7. Vendors Vendors provide a wholesale service to commodity outlets. When considering which vendors to use, recreation facility managers should carefully assess vendor pricing, delivery, financing terms, consignment terms, product availability, and overall service.

8. Pricing Pricing is critical to the success of a commodity outlet. It simply comes down to whether the user will purchase what is being sold for the designated price and whether the outlet can afford to sell the items for that price and make a profit. Prices should meet the cost of the operation, which includes the cost of goods to be sold, labor, and any overhead such as utilities, insurance, and equipment, as well as build in a margin of profit.

9. Staffing All staff should show sincere interest in customers by greeting them in a friendly fashion. They should also be capable of attending to customers in a competent manner and answering questions about the products. Staffing is critical to the success of any commodity outlet.

10. Sales The goal of all commodity outlets is to sell or move a product. A variety of methods can be used to accomplish this goal including: –Discount sales –Special payment plans

11. Displays Most commodity outlets arrange, present, and display their products for two purposes: 1. Displays present opportunities to store items. 2. Displays attract potential customers Displays should be modified, adjusted, and moved to various places in the outlet to keep the environment from becoming stagnant. Moving displays also generates interest in products that were previously out of the main flow of traffic.

12. Enhancing Success Not all items sell as readily as others. Some options to entice the customer into making a purchase include gift wrapping, free or discounted shipping, extended warranties, quantity discounts, open houses to feature certain items, liberal return policies, special deliveries, trial uses, and reminders (newsletters or e-mails) of sales or activities.

13. Commodity Outlet Design A number of design elements are associated with a successful commodity outlet. An architect or consultant who may be part of the design process of a commodity outlet can provide this information. It is imperative that facility managers be cognizant of design elements in order to enhance the success of this core product extension.(continued)

14. Commodity Outlet Design (continued) The following design elements should be considered: –Location –Appearance –Signage –Security –Changing area –Area lighting –Customer comfort

15. Food Services A common core product extension in a facility is food services. Food services can be a demanding responsibility for recreation facility managers. At the same time, they can be a vital part of the overall product delivery and increase user satisfaction by meeting a need.

16. Types of Food Services Food and beverage outlets can vary in size, length of season, menu, and even mobility, moving from place to place or facility to facility. The most common food and beverage outlets are snack bars, vending machines, cafeterias, full-menu restaurants, and catering.

17. External Influences Food-service outlets are regulated by predetermined codes, standards, and laws, or external influences. These standards and codes are provided by OSHA, public health agencies, state liquor agencies, and local ordinances. Any facility that offers food and beverage service accepts a responsibility that can affect people’s health.

18. Child Care Child care is a core product extension created to provide the service of caring for children while adults use or work at a recreation facility. It is planned as an extension of the facility, providing a supplemental service and when possible, additional revenue. It is crucial that parents feel confident that their children will receive proper care.

20. Child Care Age Levels Recreation facilities that provide child care may be more attractive to parents with young children. Recreation facility managers must realize to what extent a facility may need to provide such a service. When thinking in terms of options for child care, three age levels can be considered: infant, preschool, and school age.

21. Child Care Functions Although the types of child care operations may differ, there are some common functions that apply to all situations. –Health –Education –Recreation –Coordination –Safety –Security

22. Child Care Operations In the delivery of a child care operation, certain functions relating to general management should be understood and appreciated. Parents want to know that the child care service is suitable and that their child is in attentive hands at all times. Recreation facility managers should be concerned with the child care delivery functions of staffing, training, and policies.

23. Regulations Regulations for child care operations vary from state to state. These regulations can include the following: –One staff person must be present for every five children. –Only a certain number of children are allowed per room. –No more than two children under 30 months of age are allowed per caregiver.

24. Insurance Recreation facility managers should be aware of the liability associated with child care. Child care providers are liable and can be sued by parents if the parents feel the caregivers were negligent or failed to exercise reasonable care and an accident, injury, or even death resulted. Appropriate liability, accident, and property insurance should be obtained from insurance providers.

25. Maintenance The maintenance of a child care operation requires greater emphasis than facilities where only adults are involved. All toys, equipment, and surfaces should be kept as hygienic as possible. A regular cleaning schedule should be established, disinfectant should be used, and all repairs that would pose safety concerns should be taken care of as soon as possible. Equipment, locks, sprinkler systems, exits, and security equipment should be inspected routinely.

26. Cost The cost of providing a child care operation will vary by facility. Some recreation facilities may subsidize the cost of the operation, which may entice users. Where possible, child care should be inexpensive because it is a service needed at a time for families when income may present challenges to affording child care at a recreation facility.

27. Child Care Design Similar to other core product extensions, child care center have unique design requirements. Attention should be directed toward design, appearance, functionality, and maintenance needs that are important to daily operations.

28. Location The location of a child care center should always provide access for parents with appropriate control of all entrances and exits. The location should be visible and provide easy access for parents to pick up and drop off their children. There should be minimum pedestrian traffic so that children are safe from potential problems created by outsiders.

29. Indoor Play Area Many auxiliary child care areas are primarily indoor play areas. Indoor play areas should be designed to help children remain occupied and to encourage creative play and social opportunities. Recreation facility managers should determine the number of children that may be in this area at any one time, leading to an appropriate amount of space.

30. Outdoor Play Area Most states require that children play outdoors for a certain number of hours per week. An outdoor play area should have a fence surrounding it so that outsiders’ access is limited and children cannot leave the area on their own. The layout should allow staff to observe the entire play area from a central location.

31. Kitchen and Cafeteria The design of a kitchen area in a child care center will depend on the type of facility it is in, as well as the length of stay for the children. T he kitchen should be centralized for easy access and distribution of food. Ideally, kitchen areas include the following: receiving area, food storage, cooking area, cleanup area, equipment storage, refrigeration, and separate waste storage and removal area.

32. Restrooms Child care centers need two separate restrooms, one for adults and one for children. The children’s restroom should have lower fixtures and include a changing area for infants. Lights should always be on during operational hours, and light switches should be out of the reach of children. Restroom areas should be frequently inspected for cleanliness, restocking of supplies, and the general safety of children.

33. Storage Most child care centers are designed with inadequate storage space. Storage is needed for administrative purposes, play equipment, and other objects. Equipment that is improperly stored can create a hazard. Adequate storage allows for items to be put away out of the reach of children.

34. Equipment Checkout or Rental Many recreation facilities offer equipment rental or equipment checkout as a core product extension. Equipment checkout or rental systems must ensure that the equipment goes out and is returned properly. Equipment distribution operations can be costly if poorly managed with no systems in place to monitor distribution.

36. Equipment Checkout or Rental Operations A thorough system that controls the equipment exchange is essential whether a facility maintains a checkout or rental system for distributing equipment. Some basic points that could be incorporated in an equipment checkout or rental operation include exchange, policies and procedures, waivers, insurance, and tracking.

37. Equipment Checkout and Rental Design A major issue to consider with an equipment area is its location in the overall recreation facility. An equipment area should be located where the flow or circulation of facility users through a facility creates traffic to the area. (continued)

38. Equipment Checkout and Rental Design (continued) In addition to location, the size of the equipment checkout and rental area is important. This area should always have ample space to fulfill its functions as well as provide for the comfort of employees assigned to the area. Far too often, equipment areas are too small to meet equipment distribution needs. (continued)

39. Equipment Checkout and Rental Design (continued) A common problem is providing adequate space for the storage of equipment. A variety of methods can be used to assist with equipment storage, including cabinets, shelving, bins, racks, and hanging devices. Some equipment may require humidity and temperature control to protect it from deterioration. A well-thought-out and accessible storage area facilitates efficient distribution of equipment.

40. Laundry Services Some facilities may need to consider laundry of items such as towels or uniforms in relation to equipment checkout and rentals. Facilities may even provide cleaning services for personal clothing. This function requires advance planning and will be contingent on available funds and the type of facility services expected by customers.