Recently there has been a lot of drama, and disagreement, over the creation of the new Big Canoe POA Marketing Department. There is not a lot of clarity as to what the purpose, or goal, of the “marketing” is. Is it to encourage rental visitors to come enjoy the “Resort like amenities” we offer? Is it to attract revenue generating customers for wedding venues, clubhouse dining, or corporate meetings? Is it to attract people to move to Big Canoe, thereby helping to stabilize and improve the local property values? Is it simply a grand scam, designed to shift the Developer’s marketing expenses to the property owners? Is it subject to political abuse by special interest groups? Or is it-all-of-the-above, a brilliant cohesive marketing plan designed to increase traffic to revenue generating venues, AND increase vacation resort rentals, AND expose the community to potential buyers, ALSO subject to abuse by special interests, AND a manipulative scam to make property owners pay for the developer’s marketing? Perhaps most importantly, is the cost of marketing being fairly distributed amongst those that will profit from increased marketing?
We will explore the issues in this article, and discuss how the creation of a Marketing Co-op could be the solution to our needs.
Historically it has been the Developer’s responsibility to market the Community. They are a business, and they have the profit motive. In 2015 the Developer “spent approximately $850,000 in marketing expenses and hired a marketing firm and a marketing director” (Katie Wercholuk), and “indicated that they would be making a comparable investment in marketing” in 2016. The 2005 Covenant changes gave the Developer the following right…
Excerpt from Article X Section 5(k)
Recently the Developer has pivoted, and is approaching the phase where they will be leveraging some of the insane rights granted to them in 2005. In this transition, they already tried overplaying the “Trademark” issue against the POA. We’ve showed in a recent article, found here, that this is a toothless threat, not even a good bluff (unless of course you are a clueless POA Board misguided by years of poor legal counsel, aka George Nowack). But the Big Canoe POA Board had already caved in to the Developer’s pressures and manipulation, and accepted the Developer marketing director, Katie Wercholuk to run our newly created POA marketing department. They had planned to point all leads to Big Canoe Realty. I’ve heard it said that they (POA & GM) felt they “had no choice.” Well, thanks to this paper’s coverage, the facts are now out in regards to the Developer’s Trademark, and I now hear that the POA Board and General Manager are rethinking an exclusive marketing arrangement with Big Canoe Realty, and that “legal counsel” is now looking into it. That is great news, and is the first step in finding an intelligent solution.
Let’s follow the money to see who benefits from marketing Big Canoe, GA.
1) The Developer (Big Canoe Company) still has interests in the community. They have future rights to run an Inn, to pull in or establish Commercial ventures, and to develop new Land tracts/Subdivisions they may uilaterally decide to pull in under the Covenants in the future (i.e. Village at Blackwell Creek, the 78 Acres north of Wildcat, properties across the road from Steve Tate & Cove Road.) Remember, they can do ALL of this without asking any permission from the Property Owners or POA. So the Developer still has a vested long term interest & profit motive in seeing Big Canoe marketing thrive. They are also entitled to the “POA data” that is the fruit of that marketing labor and expense (but they cannot share that with Mike Rhodes’ Big Canoe Brokerage LLC – see above).
2) Big Canoe Brokerage LLC has a profit motive, in that they make comissions on the listing and sale of Real Estate.
3) EVERY OTHER REALTOR serving the community also has a profit motive, in that they too make comissions on the listing and sale of Real Estate.
4) Property Managers (such as Mountain Home Rentals of Georgia, and Mountain Vista Rentals) make money on the Vacation Rental Market.
5) Property Owners that rent their homes out to vacation rentors also make money, and some of them self-manage.
6) Local businesses (restaurants, wedding venues, catering, the IGA, misc services) all make more money as more people visit Big Canoe, and business further grows with increases in the permanent resident population.
7) The POA makes money through increased revenue at the Clubhouse, Golf, Tennis, Swin, Fitness, Snack bars, through merchandising, etc.
8) And lastly, indirectly, the Property Owners make money (or at least protect the value of their investment) when property values remain high, which is definitely a result of increased exposure to the market.
So everybody is making money!
The PROBLEM under the current plan, is that the Property Owners will be footing the bill for the majority of marketing – marketing that is fueling all this “money making” for all these other groups! Not Fair! Not Reasonable! Not a Sustainable Business Model!
So lets look at how money is spent now by these various groups for marketing THEIR profit making ventures…
1) Developer has pretty much foisted everything off on the property owners recently. Granted, they are entering a hibernation period of sorts as we head into a probable economic downturn. I also think they are going to let the drama die down over the land deal before they start announcing new expansion plans. Historically they paid the bulk of outbound marketing. Outbound marketing is the most important marketing, because it brings new exposure to new Customers/Buyers/Visitors.
2) Big Canoe Realty (now BC Brokerage LLC) was clearly planning on riding a free marketing wave, paid for by the POA / Property Owners. This does nothing to extend marketing reach to new customers.
3) Other Realtors do spend money, but most of it goes to local marketing, fighting over the customers that are already attracted to the area. This does nothing to extend marketing reach to new customers.
4 & 5) Property Managers & Property Owners that rent their homes traditionally pay VRBO, Homeaway, Airbnb for exposure, but honestly that is geared to people already aware of Big Canoe, already looking for a place to stay here (they basically just provide a database of existing rental options), and so it really doesn’t contribute to new outbound exposure.
6) Local Businesses only market locally to the existing base. Does nothing for outbound marketing.
7 & 8) POA & Property Owners have traditionaly not spent on marketing, but they have spent on building the infrastructure, amenities and beauty of Big Canoe – or as marketers refer to it – “The Product” being marketed. Now it looks like we are going to be picking up tab for the bulk of all outbound marketing also. Under the current plan, the rest of the group spending will remain the same, simply fighting for local exposure, as we do the heavy lifting.
There is a better way to actually increase marketing expenses, extend marketing reach and effectivness, but spread those marketing expenses more fairly amongst the groups that are actually profitting from the fruits of all the marketing.
That is for the Big Canoe POA to establish and run a Marketing Co-Operative
1) Any exposure the Developer may receive via new Neighborhood marketing etc needs to be fee based, equitably shared, or let them bear the burden, and cut them loose from any POA Marketing Plans. We may have to share some of that data with them, but we don’t have to promote them.
2 & 3) Big Canoe Realty and the other Realtors should be given EQUAL opportunity through a multi-level co-operative marketing program (i.e. Gold, Silver, Bronze level exposure options). Big Canoe Realty (now “BC Brokerage”) will have to start paying up. The other Realtors are already spending a lot of money on local advertising. If we (the POA) can create a fair Exposure platform that provides equal opportunity for realtors to become known and to showcase their properties, then they can divert some of that local money (which just serves the purpose of infighting to see who gets to list or sell the properties to EXISTING customers) into joint, co-operative, outbound marketing campaigns which actually get the community NEW exposure. This will actually increase sales & revenue for everyone. It is simply a more efficient and productive use of existing monies, and it distributes costs away from the property owners. It is a Win-Win for everyone.
4 & 5) Property Managers & Property Owners that rent their homes are increasingly fed up with the ever increasing fees and over-controlling nature of these VRBO/Homeaway monopolies. I know because I was a vacation property manager for many years, and I actually quit the industry because of the trend, which is literally driving many property management firms out of business. Developing a solid vacation rental section, and allowing Property Managers and individual property owners to pay to feature their properties would be quickly accepted if cost structure was started slowly. The monies from such a project could go to actual proactive, outbound marketing tied into overall Big Canoe Comunity marketing. This would over time reduce markting costs for this segment, and increase rental & management fee income. We are a big enough community that we could do this. If just 100 properties enrolled in this program (Big Canoe has well over 150 vacation, short term rental properties now) at $30/mo, then this would pull in $36,000 per year in marketing funds. 1st year fees would easily cover web development to set this up.
6 & 7) Local Businesses and the POA have marketing venues that dovetail perfectly into the Vacation, Short term rental marketing. Weddings, Golf junkets, Summer Swimming, Fine Dining, Hiking Excursions, all could be developed within a short term rental marketing strategy, because visitors need a place to stay when they come, these groups go hand in hand. This adds to the Financial Pool available for central co-op marketing. Suddenly we are starting to not only pay for some of this stuff, but we are actually develping a functional co-operative that makes MORE money for everyone, by taking this local marketing money that realy does nothing to INCREASE customer base, and puts it to work in very productive outbound marketing.
8) Property Owners do have a legitimate stake, because this does help increase internal amenity revenue, and does stabilize and keep property values high. It’s fair that the Property Owner fees subsidize and contribute, but this approach distributes the financial burden more equitably.
Closing thoughts….
As we are transitioning away from the Developer, and learning to become a self-sufficient community, we need to focus on creating opportunities for local businesses, property owners, realtors, property manangers and revenue generating venues to thrive – BUT we have to be careful not to become a welfare state for said ventures. Responsible, central subsidization and facilitation is a reasonable role of government in this publisher’s view, and the POA is to a degree – our “Government” here in the Big Canoe community. Managing this transition is going to take expertise, strong leaders able to make tough decisions, and teamwork.
The existing Board has honestly not shown any ability to think along these lines. Their solution to everything recently has been to “tax” the citizens and waste the money. This recent “Long Range Plan” Chambers Consulting Group fee of $125,000 is an example of that. If these current Board people aren’t smart enough to be able to use simple common sense in making decisions, and an ability to run surveys and listen to people, then I don’t know why we are putting them in positions of power.
I do think that managing the community money through marketing and long range planning is going to be important going forward. My understanding is that Dudley Devore has some experience in the Sales & Marketing area, and might make a good Chair of the Board going forward. I’d prefer to see Lou Stephenson get it as she’s the most qualified person to lead us in this transition in my opinion (tough, fair, efficient, cost-cutter, thinks outside the box), but the odds of a brand new electee gettting the position are slim, but if there is a way to make that happen I think it would be great. I also like Patricia Stimmel as she has some marketing background as well, plus she seems very penny-wise, and even if all she contributed was to continually question the amount of expenses per project, well, we need SOMEBODY doing that right now and don’t seem to have ANYBODY!
Anyway, I am throwing this thought out – that we need to be looking at developing a Marketing Co-operative for Big Canoe. We need to develop a program, w/central website, that can offer a single point of fair exposure for EVERY Realtor, Property, Management Group, Rental, Business, Venue, Service (I forgot services – we should have a separate, central, community services website with standard, low fee inclusion options, and possibly higher visual enhanced fee options). We need to pool all the money that is sloshing around and fighting for local exposure, and aim some of it outwards to NEW Visitors, Guests and Property Owners.
And very importantly, we need to create a system that pays for itself by distributing costs equitably to those that are benefitting. This is my two cents.
Please share our website with neighbors, as we continue to think outside the box, in an attempt to develop beneficial ideas, and create balance within Big Canoe. This can include posting links to our stories on the various Big Canoe Facebook Groups, and discussing the ideas. Or discuss it on our Facebook Group, https://www.facebook.com/groups/FocusonBigCanoeGA/
Peace,
-david hh / publisher
* a publication of www.TheMountainsVoice.com
Big Canoe, GA 30143
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