Shoot benchmarking 2011/12 Profitability increases as costs are controlled and charges per bird rise
The British Association for Shooting & Conservation
These are the results of our third shoot benchmarking survey. almost 40% more shoots took part following the success of last year’s survey, each one of which receives a detailed free report comparing them with the benchmark. There is no charge to include your shoot. The shoots have been put into two categories: let shoots that are predominantly commercial (62 shoots) and private shoots (90), some of which let days to help cover costs.
James horne Managing Director 0207 4911363 jameshorne@gunsonpegs.com
What the 2011/12 SurVey iS baSeD on‌ 152 shoots (2010/2011
110 shoots)
(
up 38%)
Shot over 2,700 days (2010/2011
2,400 days)
(
up 13%)
1,200,000 birds put down (2010/2011
1,100,000)
(
up 9%)
average acreage of shoot
david steel Head of Sporting 01200 411051 david.steel@smithsgore.co.uk
average number of days shot per season
gunsonpegs
average bag size let days
smiths gore
average number of birds put down
we hope that you find the results useful for managing your shoot. Please call or use the email addresses below to register for the next survey.
let shoots
Private shoots
14,187
4,002
3,248
1,161
* Out of which 21 days are let on average
213 birds
147 birds
Shoot Performance Shoots increase prices and more of them charge per bird shot Pre – SeaSon Price paid per poult (£) AverAge £3.55
£3.71
(£3.43)
Bottom 25%
top 25%
£3.40
(10/11 figures shown in brackets)
£4.29
AverAge £4.00 (£3.78)
Bottom 25%
top 25%
£3.75
There was little difference in the prices paid by let and private shoots, as in previous years.
Selling let days
over 90% of Let dAYs were soLd Before the stArt of the seAson, with repeAt Bookings hoLding up weLL the mAJoritY of shoots were soLd out Before the stArt of the seAson
Source of new clients rank 1ST
2ND
3RD
4TH
=
=
=
=
Other sources
internet/ website
sporting agents
Journal advertising
(e.g. word of mouth / recommendation)
Word of mouth and recommendations remain the most important source. Websites, like GunsOnPegs, are becoming a more important source, especially for private shoots.
Maximise returns to maximise shoot profitability.
Overage remains a sensitive and vexed issue.
Shooting SeaSon Price charged per bird (excluding VAT) BOTTOM 25%
aVeraGe
Average bag size
TOP 25%
leT sHOOTs
PriVaTe sHOOTs
(10/11 figures shown in brackets)
pheAsAnt
£30
£32 (£30)
£35
Let dAYs
213
147
pArtridge
£28
£31 (£29)
£33
privAte dAYs
195
115
Prices rose by £2 per bird for both pheasant and partridge. Let shoots charge £1 per bird more than private ones (based on average charges), and this difference is increased when VAT is added by the let shoots (66% of which charge VAT).
Bag size appears to be increasing on let days for both types of shoot.
Customer service: overages and dressed birds 2011/2012
2010/2011
28%
allow 10% leeway
31%
no Charge
16%
15%
Charge per bird shot
6%
allow 5% leeway
48%
38% 18%
Other
over 50% of Let shoots give their guns dressed Birds (up from 47% LAst seAson)
More shoots are charging per bird shot. The proportion of shoots allowing 10% leeway has dropped and the proportion not charging for overages has also fallen.
Returns (% of birds put down) let shoots
Private shoots
all shoots 38% 39% 30%
40%
29%
43%
45% 46%
33%
42% Bottom 25%
(10/11 37%)
41%
(10/11 42%)
Private shoots continue to achieve higher returns than let ones.
09/10
Average 10/11
Top 25% 11/12
Returns increased by around 2% compared with the previous season. There is a 13% difference in returns between the top and bottom performers.
Small rise in salaries The most common benefits provided are a house, vehicle and clothing allowance, and keeper’s day The shoots provided the details of salaries, packages and benefits for 249 staff.
Average salary for Head Keepers
£18,761 (£17,475)
Top 25%
Average £21,541
Bottom 25%
£15,000 (£13,000)
£23,990 (£22,832)
Bottom 25%
(£20,146)
(10/11 figures shown in brackets)
% of Head Keepers provided with benefits
93%
House
-2%
53%
28%
100%
33%
65%
Utility bills paid
Pension
Vehicle
Vehicle
Dog allowance
+16%
n/a
business use private use
+2%
n/a
-3%
81%
88%
Clothing Mobile allowance Phones
+5%
+15%
88%
28%
Keepers day
Other benefits
+10%
-26%
75%
43%
28%
House
Utility bills paid
Pension
% change from 10/11
-4%
+25%
n/a
Higher pay appears to yield higher returns.
we advise on keepers’ salaries and benefits so shoots attract and retain the best staff.
Average salary for Gamekeepers
Beaters and pickers up pay Beaters (per day) average
£25
(£25)
Pickers – up (per day) average
top 25%
£29
(£29)
£18,050 (£18,555)
AverAge £16,414
(10/11 figures shown in brackets)
(£16,097)
number of shoots
Beaters pay (£/day) (10/11 figures shown in brackets)
25 20 15 10 5 0
£10
% of Gamekeepers provided with benefits
£15
£20
let shoots
£25
£30
£35
£40
Private shoots
94%
7%
69%
84%
46%
87%
28%
number of shoots
Pickers up pay (£/day) 15 10 5 0 £10 £15
£20 £25 £30 £35 £40
let shoots Vehicle
Vehicle
business use
private use
Dog allowance
Clothing allowance
Mobile Phones
Keepers day
Other benefits
n/a
+1%
-1%
0%
+18%
-19%
+9%
£45 £70
Private shoots
The majority of shoots pay beaters £20-£30/day. Let shoots tend to pay more than private shoots.
coStS anD ProfitS Shoots continue to control costs
Variable costs have remained constant, at just over £8 per bird put down.
Fixed costs have fallen to £4.67 per bird put down.
Birds, feed and beaters and pickers up pay remain the three main costs, accounting for 78% of variable costs.
shoots have reduced all three of the main fixed costs per bird put down. (staff salaries, rent and vehicle and trailer costs).
Total variable costs per bird put down
Total fixed costs per bird
£8.93
Bottom 25%
AverAge £8.06
top 25%
£6.58
(£8.08)
(10/11 figures shown in brackets)
£5.58
Bottom 25%
Aver £4. (£5.
(10/11 figures shown
% of variable costs
% of fixed costs % of total vc
£/bird put down
Birds
40%
£3.17
Feed
26%
£2.05
Beaters and pickers up pay
12%
£1.00
Vehicle and trailer costs
Fuel Seeds / fert / sprays for game crops Any other variable costs Hospitality costs Materials for pens Shoot equipment (pegs, radios etc) Vet and medical Ammunition Advertising and marketing Professional advice
5% 6% 2% 4% 3% 1% 1% 1% 4% 0%
£0.38 £0.47 £0.16 £0.34 £0.25 £0.13 £0.08 £0.04 £0.01 £0.02
Income foregone as housing not let Any other fixed costs Insurance Housing Maintenance Utility bills paid for staff Other staff benefits Dog allowances Clothing allowances Mobile Phones Management costs of operating shoot Depreciation Rent paid to 3rd parties for housing
Staff salaries
78%
Rent paid to 3rd parties for land or sporting
set a budget at the start of each season and monitor performance against it.
% returns fundamentally affect the economics of your shoot.
Just under two thirds of the 49 commercial shoots that we had suitable data for made a positive net income per bird shot; it averaged £8.94 per bird shot and ranged from £1 to over £20 per bird.
Total costs per bird put down*
put down
Age 67
top 25%
£2.55
81)
£13.71
Bottom 25%
£/bird put down
56%
£2.72
12%
£0.48
8%
£0.32
7% 1% 5% 1% 2% 0% 1% 1% 1% 3% 2% 1%
£0.45 £0.05 £0.16 £0.08 £0.10 £0.02 £0.03 £0.03 £0.02 £0.08 £0.13 £0.03
(£12.28)
top 25%
£9.26
(10/11 figures shown in brackets)
in brackets)
% of total fc
AverAge £12.42
How does a total cost of £12.42 of putting a bird down multiply up into charging over £30 per bird?
76%
TOTal COsT Per BirD PUT DOwn
÷
=
£12.42
BY reTUrn (%) TOTal COsT Per BirD sHOT
41% £30.29
only includes shoots which provided variable and fixed cost data * This and so is not the sum of total variable costs plus total fixed costs as those calculations included shoots that only provided one set of costs.
Profitability What makes some shoots profitable and others loss making? 33% of the commercial shoots made a loss – a smaller proportion than last year (42%) but they made a bigger loss per bird of -£15.18 (-£9.12 in 2010/11). Average costs per bird put down (£ unless otherwise stated) Total cost per bird put down
Profit making shoots
Loss making shoots
£10.55
£13.89
The difference in performance is in fixed costs, especially staff costs, more than variable ones Variable costs per bird put down Birds Feed Beaters and pickers up pay Fixed costs per bird put down Staff salaries Vehicle and trailer costs Rent paid to third parties for land
£7.19 £2.85 £1.67 £1.09
£8.30 £3.00 £2.28 £1.01
£3.47 £2.03 £0.35 £0.16
£5.59 £3.10 £0.38 £0.20
But the difference in staff costs does not appear to be a race to the bottom as the salaries of full time Head Keepers are higher for profit making shoots – the difference is that they look after more birds Full time Head Keeper salary Number of birds put down per FT staff
£23,887 11,104
£19,772 8,565
There is also a difference in shoot performance. Profitable shoots put down more birds, have more let days, larger bag sizes, have higher returns and charge more per bird Number of birds put down Number of days let per season Average bag size per let day Return % Price charged per bird — pheasant (exc VAT) Price charged per bird — partridge (exc VAT)
15,936 22 234 38%
£34 £32
11,396 18 175 35% £32 £31
All of the above translates into massive differences in the income each let day generates Net income per let day
£2,575
-£2,312
Subject to best practice in game management and changing biodiversity, the key to profitable performance is: 1. Controlling variable costs 2. Spreading fixed costs, especially staff costs, across more birds put down 3. Generating more income per let day, from bigger bag sizes and higher charges per bird 4. Selling more let days
To register to take part in benchmarking – for free – or arrange a shoot seminar for groups of 10 or more shoots, please contact: David Steel James Horne Ian Lindsay John Harradine david.steel@smithsgore.co.uk jameshorne@gunsonpegs.com ilindsay@gwct.org.uk john.harradine@basc.org.uk 01200 411051 0207 4911363 01497 831100 01244 573000