Optimizing Hotel Retail from Design to Supply

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Optimizing Hotel Retail from Design to Supply
Hello from Tradavo!
Please take a moment to familiarize yourself with the following information
that has been compiled through a joint effort between Tradavo and Lodgian
Hospitality. We are working together to provide GMs retail solutions that will
reduce time invested in your hotel pantry while dramatically increasing
revenues.
A good deal of research and case studies have been performed to begin this
process, and we have seen revenue increases of up to 300% over the past
12 months in properties who are following these guidelines.
Remember! Tradavo is not just another vendor selling something to your
hotel. We are partners working on a variety of levels to optimize the hotel
retail operations within Lodgian Hotels while simplifying processes for GMs.
Tradavo has worked closely with Jim McGrath, Lodgian’s VP of Operations,
and Mark Luttik, Chairman of the Lodgian Rooms Council, to put together
the valuable information contained in this presentation.
Cheers,
The Tradavo Team
Overview
1. Introducing Tradavo: Your retail partner from to design to
supply!
2. Design Services: Getting retail right – right from the start!
3. Supply: Choosing and supplying the assortment that is
right for your guests and your bottom line!
4. Optimization: Fine tuning displays, merchandising, and
assortments for optimal retail performance
5. Pricing guidelines: Turning an amenity into a revenue
stream.
6. Getting Started: Register, request, revenue!
Introducing Tradavo:
Your Retail Partner From Design to Supply
• The preferred supplier for Lodgian Hotels, Marriott
Hotels, and numerous highly respected
management companies
• Currently supplying the hotel pantry inventory for
over1,800 registered hotel properties
• Deep expertise in retail services, supply
management, consumer products and ecommerce.
• Offering a wide variety of no-cost optimization
services to special market retailers – such as hotel
pantries – to help simplify their retail operations
while increasing revenue.
Design Services: Getting Retail Right – Right from the Start!
The layout and fixtures chosen for your hotel pantry greatly influence future
revenue and your team’s ability to manage the operation. Often architects
and engineers carve out a space for a market and order fixtures, but do not
have the retail knowledge to truly plan a winning space.
Tradavo offers a wide variety of design services to help you
get retail right from the day of your grand opening:
• Ground-up renovation and installation of a new market
• Cost effective redesigns and optimizations of current market layout
• Assistance selecting and positioning cabinets, shelves, shelf
management systems, refrigeration, amenities, and other fixtures
• Ordering of Shelf Management Systems
Design Services: Getting Retail Right – Right from the Start!
Items to consider when laying out a new or renovated pantry:
Positioning: Does the front desk have clear view of the pantry? This is
important to deter shoplifting and to meet licensing requirements for the sale of beer
and wine.
Layout: What are the first products my guests will see when they walk into the
pantry? Be sure that the most popular items are positioned to be seen upon entry of
the pantry. Top sellers should always be displayed at eye level
Space Dedication: Do I have adequate refrigerator/freezer space? Remember
that water is your TOP selling product with the highest markup. Beer and wine are
also huge revenue opportunities. Don’t just place a small refrigerator in the corner!
Make sure you offer as much as refrigerator / freezer space as possible.
Quality: Do my pantry fixtures and design reflect the same dedication to quality
as the rest of my lobby? Your guests will make their decision to purchase an item
based on the appearance of the Pantry. This includes quality fixtures and displays
that are well organized. Avoiding slatwall, wire baskets, and glass shelves is
important. You want to be sure to select shelving units that display well and allow for
the shelf management systems in order to achieve a quality retail display.
Supply: Choosing and supplying the assortment that is right
for your guests and your bottom line!
Tradavo can help you choose the correct assortment to
meet the needs of your guests and increase profitability in
your market by:
• Evaluating your top guest profiles: solo business traveler,
groups, conference attendee, family/vacation travelers, airline
personnel,
• Recommending the top products based on national sales
data within each category to ensure quick moving inventory and
increased revenue
• Loading your cart with these items and saving them as a
Shopping List for quick and easy re-ordering!
Supply: Choosing and supplying the assortment that is right
for your guests and your bottom line!
Items to consider when choosing an assortment:
Primary and Secondary Guest Profiles – Knowing your guest
profiles and anticipating their needs is key to ensuring a sale
National Brands vs. Specialty Brands – Recognizable brands are,
across the board, the top sellers in a hotel pantry. Specialty brands
can be excellent additions to your assortment if they are ordered in
conservative quantities and priced correctly.
Healthy Options – guests routinely request healthy options for
snacks, meals, and sweets, but they strongly prefer name recognition
when choosing a healthy, natural, or organic product.
Offering Variety – Guests like to see a choice of products from within
a given category. Be sure to offer flavor choices – but be careful not
to go overboard within any one product!
Optimization: Fine tuning displays, merchandising, and
assortments for optimal retail performance
A key component of operating a successful retail business is
presentation. It is not only what items you offer your guests, but
how they are displayed.
Tradavo can help you arrange your pantry and show you how to
increase revenue by properly displaying items to move quickly
including:
• Shelf management systems to correctly display
• Recommended product placement for optimal results
• Fixture procurement for amenities cabinets, displays,
shelving, refrigerators and freezers
Optimization: Fine tuning displays, merchandising, and
assortments for optimal retail performance
A shelf management system is a simple, spring loaded
plastic divider that fits inside your shelves.
The benefits of a shelf management system include:
•
An organized display of your merchandise that reduces time
spent organizing, straightening, and refilling
•
Merchandises vertically to improve appearance of items and
allows more items to be offered within the space
•
Automatically pushes products forward as items are removed
to keep shelves looking full and well maintained
Optimization: Fine tuning displays, merchandising, and
assortments for optimal retail performance
Images of a Market that is using the Shelf Management
System to properly organize and display Market
merchandise:
Notice that all products
are displayed vertically
– maximizing the
space available and
creating clean,
organized rows.
Optimization: Fine tuning displays, merchandising, and
assortments for optimal retail performance
Group like products
together by category:
Sweet Snacks
Salty Snacks
Healthy Snacks
Quick Meals
Be sure to keep the most
popular products at eye
level including:
Chocolate
Salty Snacks
Cookies/Crackers
Pricing: Turning An Amenity Into a Revenue Stream
Pricing your merchandise is a science that must carefully
consider all of the following:
ROI – Return on Investment for time, resources, and real
estate costs to offer a pantry
Analysis of Value - Convenience vs. Price – Guests value
convenience over value 3 to 1 when traveling on business.
Perception of Value – Business Traveler vs. General Manager
Do not price things according to what you would pay for an
item.
Overall Objectives – Do you consider your pantry an amenity
or a revenue generating convenience for your guests?
Pricing: Turning An Amenity Into a Revenue Stream
General Pricing Guidelines
The standard pricing practice is double the cost of the item.
This will not always be possible on all products - some
products do not have room for those markups, while other
products, such as water, beer, wine, and soda, should see
much higher markup.
Pricing is often subjective and can vary based on your key
guest profiles and proximity to competitive alternatives.
Remember to always seek sales data when pricing
merchandise rather than relying on one employee’s
perceived value of an item.
Tradavo is happy to provide pricing recommendations for
your chosen assortment.
Submit pricing requests by visiting Customer Support
online at www.tradavo.com.
Getting Started: Register, Request, Revenue!
Register: Visit us at www.tradavo.com and click Register Now
Request: Request design help, assortment selections, pricing
recommendations or any assistance you may need by visiting us at
www.tradavo.com and clicking on the Customer Support link.
Revenue: Let Tradavo be your partner in building a profitable front
end retail operation!
Need Immediate Assistance?
Rachael Rann
Lodgian Account Manager
303.845.1955
[email protected]
Janine Roberts
Director Sales & Marketing
303.883.2335
[email protected]
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