Archive for the 'Uncategorized' Category
Ever wonder why some motels seem to survive over many decades and others falter after a seemingly small period of time. One of the causes for this can often be a lack of maintenance which creates a slippery downward spiral.
One scenario will show a motel which has operators who do the bare essentials when it comes to maintenance and take out all the excess money as profit on the motel. They do not spend any money on replacements until items are irreparable. They then sell the complex at a reasonable price because the profit looks good and the next operators use the same ethics when operating the motel. After three or four of these types of operators the motel has deteriorated badly. The tariff cannot be increased as the guests will not pay more for a sub standard unit, the number of return clientele decreases due to people being dissatisfied with facilities which do not work or look old and uncared for and the cost of all the deferred maintenance is too much for the operator. This results in the business profit reducing and the value of the business decreasing. At some stage one of these operators will need to spend a large sum of money on maintenance or sell for a lower price than they purchased at.
The alternative scenario shows a motel which has operators who continually upgrade their facilities. They replace items on a regular basis and before they become sub standard, they continually look for additions or improvements which will enhance the guests stay and they build the business year after year. By having a complex which is perceived by the customers as being cared for and providing good facilities they have a strong customer base and therefore are able to increase tariffs periodically. This ultimately results in a higher profit and a more valuable business when it comes to the selling stage. A change of hands in this scenario sees the new operators continuing with these ethics and the value of the business continuing to grow.
The underlying point is that a motel operator needs to look at a bigger picture than just how much profit is in the bank today. The impact of this profit on the future is just as important. By spending money on your motel when it is needed you will retain the quality of your business and make a larger profit at the selling stage. There is an old adage which holds true even today. Sometimes you have to spend money to make money.
February 15 2010 | Articles for current moteliers and Entering the Motel Industry and Uncategorized | No Comments »
The following story in today’s NZ Herald comments on the migration law changes and how this may affect business sales in NZ.
As an accredited business broker I deal with many foreign people looking to make New Zealand their home. Motels have been a favoured option for many of these migrants due to the fact they are able to get a business and a home all at the same time.
This law change due to come in to effect on November 30th could make the process easier and more permanent form the onset, with the chance of permanent residency straight away rather than going though the process of a long term business visa.
This larger target market must be good news for those looking to sell their motel business.
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10609740
November 17 2009 | Articles for current moteliers and Changes in Motel Trends and Entering the Motel Industry and Uncategorized | 2 Comments »
With all the conferences and seminars I go to I seem to find lots of tips and programmes which are so good and time saving I feel I just have to share them and help to make the running of your motel or just your computer life even smoother.
This post stems from a seminar with Debbie Mayo Smith and her book 101 quick tips. The post is about Outlook and the various short cuts and features which you can use with this programme. Some of you may already be using Outlook but some may still be on outlook express. My own personal opinion is that outlook is a far better programme as it has a calendar, tasks, appointments, reminders and other functions which outlook express doesn’t have. Outlook express is simply to receive and send e-mails where Outlook has far more features than that.
Basically Outlook is an e-mail programme combined with a diary and so you can organize your follow up tasks and appointments from e-mails and also set reminders so you don’t forget to do those essential things. I will concentrate on tasks in this post and show how you can improve your organization skills by the use of this programme and a few simple tips.
Once you have outlook you will see a list of folders in the side pane which will include one called Tasks. To create a Task click on this folder then click the New button. Alternatively go to the File menu click on New and then click Task.
In the subject window type a name for your task. Then complete any other boxes on the TASK and Details tabs for information you want to record for the task. If this is a task you need to reoccur. Eg: Paying PAYE click Recurrence, click frequency (daily, weekly, monthly, yearly) for which you want the task to reoccur.
On the Task tab you can set who the task belongs to, assign the task to someone else, make it reoccurring, assign a due date, assign a start date, assign or change it’s status, set a reminder date and time, assign contacts to it, assign catergories to it, make it a private task.
On the Details tab you can, assign a date for it to be completed, assign work hours, assign mileage, assign billing information.
For an animated tutorial on tasks you can go to http://office.microsoft.com/en-au/assistance/HA010929451033.aspx
I find the task set up invaluable for reminding me to contact people and do jobs set for a future date. In the motel business this would be great to remind you to follow up on deposits, confirm group bookings and numbers, pay GST and PAYE, unit spring cleaning rosters and numerous other things.
There are also however tips and shortcuts for setting a task. For instance if you receive an e-mail from a client saying they will confirm numbers for a large group booking by a set date then all you need to do is to click on the e-mail and drag and drop it in to your task folder icon. This will automatically open a new task which contains the content of the entire e-mail. If you want the task to show on your calendar just drag and drop the e-mail in to your calendar and it will pop up with a calendar item containing all the details of the task. Just remember the date will be set to the date you receive the e-mail so if you want to change it to the due date and add a reminder you will need to change the calendar item details then save the item.
If the task is for another person: for instance if you are asking a group booking liaison person for confirmed numbers, then you can click on the task and drag it to your inbox. This will make a new e-mail with all the details of the task for you to simply add a recipient to. Pop in their e-mail address and they have the details from you in writing. If you need to ensure you get the answer back from them for the confirmed numbers just add yourself to the e-mail as a blind carbon copy BCC and when you receive your copy of the e-mail just drag and drop it back to the task folder. This will then set up another task in your Outlook which you can follow up on. When this task comes up for you if you have not received a reply from the person just drag and drop your task back to the inbox which will create another e-mail to that person and say in the message line. I haven’t heard from you yet.
A reoccurring task may be include such things as to contact your VIP customers every two months, send a newsletter every three months or clean light shades or drapes on a regular basis. By creating a reoccurring task it takes the guess work out of when you did it last and when you need to do it again.
There is also an option of a flag instead of a task. This is a quick process of just a right click on the flag at the side of an item such as an e-mail, task or appointment . Then you can set when you want to be reminded of this item. A flag can only be created from an existing item however where a task can be created from scratch.
If your contacts have Outlook and you send them a task they can accept or decline simply by using ALT + C to accept or ALT + D to decline. An automatic e-mail will reply for them. This also works if you need to set up a meeting time for a committee in your calendar but that is another lesson.
October 29 2009 | Uncategorized | 1 Comment »
Only the second time on a golf course in my life the Log of Wood motel golf tournament was certainly a day to remember. John Griffin Realty were sponsors for the event and so John and I attended the day. Neither of us are golf players although John did play for a few years in his younger days. Long long ago. I on the other hand have only been on a golf course once in my life when I followed my father in law and husband around for a game and was absolutely bored stiff. This did nothing to encourage me to participate further in the game.
Anyway on the tournament day we dully turned up and it was decided that John and Murray Woofe from PIC insurance would drive the drinks cart around and replenish the poor thirsty moteliers on their rounds. So what was to happen to me? I’ll just walk around I said, but, oh no, John in his wisdom decided that it would be better for me to take a cart around. I knew Anne from Boundary Court in Hamilton was also walking the course so thought I could catch her up and enjoy her company.
After a quick lesson in how to drive my cart I said well where can I drive. Anywhere you want but just keep of the greens John said as he and Murray disappeared in their cart. Ok off I crept down the gravel path until it suddenly ended about 10 metres away, I looked out at the golf course, green trees, green gardens and green lawns. How on earth do I keep off the green I thought it’s all green to me. Oh well I’ll just follow the tyre marks of other carts and stick by the trees no-one will be playing in the trees.
As I crawled around the course on this cart I started to get a bit more confidence and was even going faster than the walkers by this stage. I had trouble finding Anne and was just whizzing along at my great speed when I decided to go around the bottom of this hill which was quite long grass and a bit of a gully so I thought oh yes that will be okay. However!!!! Just as I was halfway across I turned and glanced to the left and noticed a golfer poised above a ball. Another couple of golfers standing around him and all of them watching me intently. When the golfer who luckily I recognized as Robert from Rosetown waved me on I began to think maybe I was in the wrong place. Getting to the end of the gully and travelling up the hill I was greeted by John Griffin who quickly said I think you better follow us now. This confirmed I had gone somewhere I wasn’t supposed to.
Following John and Murray and wondering why they stopped now and then and just seemed to sit still for no reason. We arrived at a hole and I realized Anne was there. AANNE I called out. Everyone turned and looked at me much to my surprise and almost seemed to glare. No Kathie you have to be quiet when they are playing John whispered in my ear. Oh gosh another muck up. Still I’ve only upset about 8 moteliers so far. Good relationship building from this sponsorship so far!!!!
I snuck over to Anne and suggested she came on the cart with me. Great all sorted and back to the cart to be greeted by ” Your phone has just rung it should be on silent you know”
Well as you can guess so far the day has not endeared me any closer to the game of golf. You can’t drive where you want, you can’t make noise and you can’t have your phone on doesn’t sound like fun to me.
In all fairness though things weren’t quite so bad after that it certainly helped to have a navigator. I would be driving along gazing across the expanse of the golf course when I would hear a gasp from Anne at my side and looking down to where I was driving I would see a large mud hole which I would have to evade very quickly with Anne hanging on tightly. I’m not sure if her day was getting better or worse she seemed a bit quiet so it was hard to tell.
As the day went on I became a much more confident driver with Anne and I attempting bigger and steeper hills on our drinks delivery rounds. Of course even the cart race between us and the John Griffin Murray Woofe cart was won by the ladies. Doesn’t take long to learn to drive those carts. Hope the green keeper wasn’t too busy afterwards fixing the skid marks.
The end of the day was fantastic with a get together in the club rooms, food, drinks and the prize presentations. As sponsors we got to do the prize presentation and I of course got to kiss the recipients. Now this ending to my day was very enjoyable and almost enough to make me consider playing golf. I was however told that the kissing at the end was not standard and this has made me hesitate to rush out and book golf lessons.
October 20 2009 | Articles for current moteliers and Entering the Motel Industry and Uncategorized | 1 Comment »
This Queenstown motel couple deserve a well done award for their initiative to help with raising funds for the Tsunami Victims. Read the article below from the Southland Times about their trade me auction for a Queenstown holiday with all proceeds going to the Tsunami victims.
Holiday auction for tsunami aid
By WILL HINE in Queenstown – The Southland Times
WILL HINE/149051
BID TO HELP: Motelier Dianne Smith is auctioning a Queenstown holiday on Trade Me to raise money for the victims of the tsunami last month.
A Queenstown motelier is hoping for a wave of support as she raises money for the victims of the tsunami that devastated Samoa last month.
Queenstown Motel Apartments owner Dianne Smith is offering on Trade Me a three-day holiday in Queenstown, with all proceeds going to the New Zealand Red Cross tsunami emergency appeal.
Mrs Smith said her daughter Vanessa was friends with Highlander and Samoan rugby player Romi Ropati, who had lost family and friends in the tsunami.
“That got me going because I knew he worked hard for his family in the islands.
“I’ve met him a couple of times and he’s a lovely, lovely man.”
The tragedy also hit close to home with the Motel Association of New Zealand – of which her husband Peter Smith is national president – losing a member in the tsunami.
Queenstown businesses Real Journeys, Skippers Canyon Jet, Nomad Safaris, Prime Restaurant and HMS Britannia Restaurant have all contributed products and vouchers to Mrs Smith’s auction, taking the value of the package to $2132.
The winning bidder would be able to take the holiday within the next 12 months, subject to availability.
The auction closes on Monday.
will.hine@slt.co.nz
October 15 2009 | Uncategorized | No Comments »
Vendor paid advertising is a relatively common practice in the sale of motel properties. This is where a broker presents the seller with a marketing plan and a detailed cost for this plan. The seller agrees to pay for the advertising as specified within the plan.
The marketing plan is then put in to action and hopefully the prospective purchasers start rolling in. As a seller however you need to consider that you are gaining exposure of your property but are also paying to advertise the broker and their company. I know from experience that people reply to an advertisement about a specific property but on further investigation often discover that for some reason or another it does not meet their criteria. At this stage other properties are introduced and discussed. As a seller you have paid for the advertising which has attracted a buyer to an agent and to another seller’s property. Does this make you happy?
I have also known of motel sellers who have decided to take their motel off the market but are unable to do so because they have agreed to vendor paid advertising and know that if they remove the listing they will be presented with an invoice which they are unable to pay. There is no guarantee your property will sell just because you have paid for the advertising. Will the advertising funded by you be beneficial to you or simply reinforce the brand of the broker and company you have listed with?
Research indicates that print media is becoming less effective as a marketing tool and the majority of advertising is now done via some form of web marketing. This is very cost effective and most web sites have a user interface so there is absolutely no cost to upload a listing and display images. Bearing this in mind and the fact that any credible motel broker will have a data base of current purchasers and a referral network there should be no requirement for vendor paid advertising unless you are wanting a specific print media campaign. This should be carefully considered for both cost and response effectiveness. Study the relative statistics for this before committing to a programme.
As a seller you should be asking your broker what the marketing plan will involve, what if any costs you are required to pay and what the broker’s input will be to the cost of any advertising. If their input is in terms of a discount they achieve from a supplier then this should be expressed in terms of a discount rather than dollar terms to you.
As a company we do not promote or ask for any vendor paid advertising. We do not believe that this is in the best interest of you the seller but in fact would be more of a benefit to our company at be at your expense.
If we choose to use print media we fund this ourselves. Just as you do in your motel, we have an advertising budget which we consider to be part of our expenses and therefore our responsibility. Think carefully before agreeing to vendor paid advertising for your motel. What value are you getting for your money and is it necessary?
September 07 2009 | Articles for current moteliers and Changes in Motel Trends and Uncategorized | 2 Comments »
It is important you make the right choices along the way when you are looking to make a major investment such as when purchasing a motel. One of the important choices is that of which broker to use. Often people think all agents are the same and so they just respond to a number of advertisements with lots of different agents. The idea of sameness is far from reality as various agents and companies can be quite different.
Some people acting as salespeople for motels are not business brokers and have not done any specialist training in this area. Others have completed the educational requirements and are accredited by the real estate institute. To my way of thinking it is a bit like the difference between a GP and a surgeon. They have both undergone the same general training but the surgeons with the extra training would certainly be my choice in the specialist area should I require surgery.
Some companies are corporate entities and can often be operated under overseas ownership and conditions while others are small NZ owned and operated. Some companies have policies and procedures which must be adhered to in black and white and others are more flexible and personal in their service. You need to decide which your preference is before contacting a broker.
The internet is a fantastic medium to find information and see what properties are on offer. It can give a great indication of the motel you are looking at but often doesn’t give you much of an idea as to what the agent is like who you will be dealing with. If you register on a web site and download information about a particular motel it is important to realize that you are also committing yourself to the agent attached to that advertisement for any further dealings with that particular motel. Is this what you want?
In order to choose an agent it is beneficial to find out exactly who they are and what they represent. Ask about their background. What qualifications do they have? Have they had experience in the industry? Are they a business broker and do they understand the complexities of a motel. Have a look at their website if they have one. Google their name and see what you come up with.
Talk to the broker and see how comfortable you feel with them. You need to be able to discuss things frankly with your broker and trust what they are telling you. A good broker will be able to understand your needs and criteria and find a property to suit you.
As you can see all agents are not the same and it is a choice which you must make carefully. You are probably making a lifestyle change and investing all your savings in a motel. Take the time to find the broker who will enable this process to be a smooth and enjoyable transition for you.
August 25 2009 | Changes in Motel Trends and Entering the Motel Industry and Uncategorized | 1 Comment »
This post is about me rather than motels. Well not really about me but about my Gram. On Saturday 1st August over 90 people gathered at the new Verandah Function centre in Hamilton to celebrate my Gram’s 100th Birthday. She is a very wonderful lady whom I spent years living with as a child and admire immensely.
The family put together a power point presentation for the event and it showed how much she has given to others throughout her lifetime always looking after people be it family, neighbours, evacuees during the war or employers and their children.
Her life has seen many changes and in relation to flight she has been alive to see the progression from the first flight across the English Channel to Richard Branson developing a space shuttle for tourists.
She now lives in a rest home and spends her days knitting dolls for staff, other residents, families and anyone else she thinks needs one. Even at 100 she is still giving to other people. She is a true inspiration and if I am able to do half of what she has done in her life in mine I will be happy.
You can view the Waikato Times Story here
http://www.stuff.co.nz/searchresults?cof=FORID%3A9&cx=006730714154542492986%3Aoh6vl0ybuqy&ie=UTF-8&q=gladys+harman#226
August 04 2009 | Uncategorized | 1 Comment »
I have been learning, networking, gaining new skills, meeting old friends, making new friends and generally receiving a huge benefit over this weekend by attending the 2009 Motel Association of New Zealand conference.
This annual event is a highlight on many a motelier’s calendar and this year was no exception. Held in the Marlborough convention centre the conference hosted delegates and trades people from throughout New Zealand. As usual the C.E.O., the board and the administration staff at the Motel Association created a great event which was enjoyed by all and held great educational and networking opportunities. Those moteliers who attend the event learn about working on their business rather than in it and gain skills which give them a distinct advantage.
Amongst a host of great speakers this year Craig Rust gave an insight in to the financial statistics you need to monitor and how these affect your business. Details of how to anlayse your business and create growth rather than just assuming you are doing okay. Debra Bell spoke on relationships and how to work together in a husband and wife business. Mathew Mayne gave advice on making life easier in the technical world with tips on easier e-mail among other things. Melissa Clark-Reynolds spoke on the recession and looking at the sustainability of your business. Can it continue forever? And to wrap it up Gary McCormack ended with a hilarious commentary on small business and motels.
On top of the education and business building information there were the social events. Plenty of opportunities to network, gain further knowledge from experienced moteliers and also have a good time. The Friday night Marlborough markets function provided good food and entertainment from the Irish duo who managed to show us all a bit of Irish dancing and a lot of laughter. The Saturday gala dinner was a formal event with the presentation of the AA host award which went to The Edgewater Motel Te Anau. Congratulations. The evening was rounded off with fantastic music by The Beat Girls.
The Motel Association announced three new initiatives at conference being a new logo and branding, a change to the duty motel system to make it accessible to all motel association members as part of their membership and the establishment of the Norm Barry trust.
All in all the conference was another event which those moteliers who attended will have gained a huge benefit from. Congratulations to The Motel Association and the Marlborough conference committee on the planning and running of a great conference. I look forward to next year’s event.
July 28 2009 | Uncategorized | 3 Comments »
I attended the Waikato Motel Association AGM on Sunday night and was thrilled to see my Principal John Griffin and wife Anne presented with life membership of the association. Last year John was made an Honorary life member of the Motel Association of New Zealand and this year was presented with the local association life membership as well. It is certainly a mark of respect for him and Anne.
John has been in Real Estate for over 40 years and specializing solely in Motels for the last 30 years. The life membership awards are a reflection of the commitment that both he and Anne have to the Motel industry and all its people. They are mentors to many a new motelier, give advice and assistance to current moteliers, and provide genuine guidance for people entering the industry. On top of this they provide sponsorship and support for many motel industry events and organizations.
From my personal point of view I feel very privileged to have such good people as mentors for my motel brokering career. They are genuine, honest and caring people whom it is an honor to work with and learn from. The ethics within the business make it a very easy and enjoyable place to be.
Congratulations to John and Anne for a very well deserved Waikato Motel Association Life Membership.
July 22 2009 | Articles for current moteliers and Entering the Motel Industry and Uncategorized | 1 Comment »
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