At all times but especially in these tough economic times it is common for moteliers to be reviewing their business and looking at ways they can increase their profit. This is an integral part of operating your own business be it a motel or any other type of business. The ideas and solutions which you arrive at must however be analysed properly to ensure they are in fact a benefit and not a detriment to your business.
What is your core product? This is the backbone of your business and will be the bread and butter profit for you. Many will say well all motels have the same core product. They all have rooms with a bed and bathroom. It is true that all motels have rooms with a bed and bathroom but all of these rooms are not the same. Some are luxury rooms with expensive fittings and unique bathroom accessories, some are rooms of a modern design with standard fittings and some are older rooms with older style fittings and chattels. These are all motel rooms but each offers a different core product to their customer.
Find your identity from your core product and build on this. What are you good at and what are you not good at? If you have a luxury style complex you will not be good at servicing the needs of the budget conscious client. An older style mid range complex will not be good at servicing the needs of a client looking for luxury. What is it that you are best at? Establish your core product find your identity and build on this.
When you are looking at expanding your business you must look at the ideas in relation to your core product. You cannot be all things to all people! When analyzing a new idea put yourself in your clients shoes; is it something they would want. Would a luxury client want a frozen meal to zap in the microwave or would an anti-pasta platter be more appropriate? What can you add to your product that your current customers would want to pay extra for? It is a far more economical way of making profit by taking more revenue from your current clients than by spending marketing dollars to try and attract new clients.
When you implement a new idea it is like any other aspect of your business you must be able to monitor and measure the effect of it. If you have a new product on offer then you must set a time frame (say monthly) to measure how many customers have taken up this product and how much profit was made from it after all costs were taken out. Ask your clients for feedback. Was the product beneficial, would they use it again, how could it be improved? Then it is vital to act on the information and measurements you have gathered. If you have given a product sufficient time to develop and it is not making profit or being used then you must put it in the tried but didn’t work basket and move to the next idea. Business is a perpetual cycle of evaluation and ideas.
Most importantly be good at what you are, “Stick to your knitting” and grow your business from this to be the best of its own particular kind.
August 30 2010 | Articles for current moteliers and Entering the Motel Industry and Uncategorized | No Comments »
Out visiting motels recently I came across a couple who made me reflect on how your attitude determines the type of life you have. This couple is in their late 60s early 70s and is running a motel. They purchased the motel as an investment but then needed to go back to the motel which had been seriously run down and basically build the business up from scratch. This included not only building the business but also refurbishing the motel.
Two years on they have a lovely 4 star complex with a business in the growth stage. Their comments were that they didn’t particularly want to be working at their age but that they are enjoying the challenge and are warm with a roof over their head and food on the table so have lots to be grateful for. There welcoming smiles on our arrival certainly didn’t show any signs of not particularly wanting to be there.
Conversely another motel had a couple whose motel was very well kept and immaculately presented. The conversation at this motel however was not punctuated by laughter and consisted mainly of the problems they perceived they were having in life. The welcoming smiles were not broad and open as in the first case and the couple didn’t appear to be at all happy with their lot in life.
In my opinion both couples were in a similar situation but the first ones looked at life differently and so were happier within themselves. We all find ourselves at various stages in our life with things which we are not particularly content with but it is our attitude which makes the difference. Thinking positive makes us live positive. In order to try and achieve this a good task to do is have a GFT list. This is a Grateful For Today list. Each day write down what you can be grateful for today and take the positive things from life. I am certain it is better to live life with a positive attitude than get bogged down with the things which don’t go quite as well as you would like.
June 24 2010 | Uncategorized | No Comments »
In the motel industry the question of staff contracts and definitions is often raised with me. It is interesting to hear all the different interpretations and methods of employing staff and paying wages. Legally however as an employer a motelier is bound by statutory law and must abide by the obligations under these laws.
Probably one of the biggest misnomers is that cleaning staff in a motel are casual employees. The term casual employee is loosely used to describe someone under a fixed term contract. This is clearly defined in the act as
Fixed term employment
- (1) An employee and an employer may agree that the employment of the employee will end—
- (a) at the close of a specified date or period; or
- (b) on the occurrence of a specified event; or
- (c) at the conclusion of a specified project.
-
The act goes on to specify that this type of employment contract must not be used to
- to exclude or limit the rights of the employee under this Act:
- (b) to establish the suitability of the employee for permanent employment:
- (c) to exclude or limit the rights of an employee under the Holidays Act 2003
In many cases motels call their staff casuals and pay them as if they are under a fixed term contract in that they pay holiday pay as a percentage of their wages on a weekly basis. Motel cleaners work variable hours but have an expectation when they finish work for each day that at some stage in the near future there will be further work for them. Under the terms of the act treating cleaners as fixed term contract employees is illegal and should the employee have issues at a later date they can claim that they have not received holiday pay and the motelier may be required to pay holiday pay on top of the wages already received.
A motel cleaner is a permanent part time employee with variable hours. They can be employed on a basis where you call them when you need them and tell them when they are not required but they are entitled to all the benefits that any other permanent employee is entitled to. Their employment contract must be in writing stating the terms and conditions of their employment. The holiday pay must be paid when they take their holiday not as a percentage each week. The essence behind holiday pay is that the employee has a break from work as much as that they have holiday pay so it should be paid to them when they are having time off. If they do not have regular rostered days each week then a day they are not working could be considered to be a holiday and paid as such. This must be shown clearly on the pay slip and pay records.
Many motel operators have employees who do not have an employment contract and who are paid holiday pay as a percentage of their weekly wage. As a business operator you can chose to operate in which ever manner you wish but you must be aware that this style of employment relations may leave you open to possible problems at a later stage should your employee become disgruntled and take the issue further. If you are unsure of the Employment regulations and what your obligations are as an employer you should seek legal advice to make sure you are in fact doing things correctly.
April 14 2010 | Articles for current moteliers and Changes in Motel Trends and Entering the Motel Industry | 3 Comments »
This is the title of an interesting article I read in the Waikato Business News. As I read the article I could see some very valid points and recognize myself as a social butterfly rather than a competent networker with an objective for each function.
The jist of the article is that rather than networking being something that you do to someone it is an attitude. Instead of just showing up at the functions and enjoying the nibbles and refreshments you must go to the function with a business goal. People will make time to interact with someone who they can have a potentially beneficial relationship with but not many business people have time to waste on social butterflies.
Co-operation is a key principle to networking. This is when two businesses team up to leverage resources and build each others businesses with the sole purpose of creating greater value for their mutual clients. You remove the competition through co-operation and everyone- the two businesses and particularly the client- wins in this relationship. This co-operation concept is initially scary for some business owners and that’s because they come from a place of poverty thinking rather than abundance thinking. Poverty thinking is when you believe the amount of business in the market is finite and if you share the pie, your slice gets smaller. Abundance thinking sees the number of business opportunities as infinite. Therefore, as you share the pie, the pie grows and you share gets bigger.
Think about some of the functions you have attended and what if anything you have gained from them. Then think about other function where you have instigated a very mutually beneficial business relationship. How did that happen? There are many motels who work together and create a better business for each other as well as themselves. Networking does not necessarily have to be with a business which is different from your own. There is certainly truth in the old adage “we are in competition not opposition”
Another concept which relates more to customers is that of the six rung ladder relationship. Under this concept before you qualify someone as needing your business product or service they are termed a suspect. When you qualify them they become a prospect. When they buy your product they become a customer and when they buy a second time they become a client. Then when a person begins referring your business to others they become an advocate.
However your aspiration should be to create relationships with people to turn them in to evangelists for your business. An evangelist is a card carrying referrer who has the same passion for your business as you do. Evangelists are money in the bank. Think of a business or person who you are an evangelist for. What did they actually do to make you feel like that and can you recreate that for your customers. I know myself if I have a person or product I promote in this way I feel good in that I am supporting the person selling the product whom I believe is worthy of this support and also I am helping the person I am referring the product too as it is something they will benefit from. How can you make yourself part of this triangle?
Well the next time I am putting on my glad rags to go to a function I will be setting some goals and seeing how they work. Another of my favourite old sayings is “if you continue to do what you have always done you will continue to get what you have always got” I’m going to try something new and see if I can get more of the pie. Food for thought isn’t it.
Reference: Waikato Business News article by Debra Bell
March 20 2009 | Articles for current moteliers and Entering the Motel Industry and Uncategorized | No Comments »