Ms. Locke

Furniture, Fixtures & Equipment

How to Enhance the Look of Your Property & Your Bottom Line

By Amy Locke, Director, Interior Design, Hatchett Hospitality

Effective FF&E has never been more of a challenge for hotel owners and managers.

Among the factors affecting design and purchasing decisions are 1) a tight economy, which is changing plans for both business and leisure travelers while creating price increases in products to be purchased as well as in the transportation costs for delivery of those products, 2) new standards by almost every franchise brand, which have led to considerable hotel renovation as well as property rebranding, and 3) travelers who have become more discriminating and demanding about their hotel accommodations.

Nevertheless, the hotel industry certainly knows how to weather a storm - and this article provides specific tips for how owners can lower their risk and raise their chances for profitability by hiring the right FF&E team in this difficult environment.

FF&E is a "made to order" business - it's designed and purchased one hotel at a time, very carefully and deliberately to create a specific "look" and "feel" that's aimed at a targeted group of travelers.

And usually FF&E purchases are made infrequently - only every year to seven years, depending on the product and its usable life cycle. Costs can range from a few thousand dollars per room for a small-scale renovation to upwards of $20,000 per room for a luxury hotel.

Typically, there are two ways to buy FF&E - (1) through the "agent" model under which a company negotiates purchases on the client's behalf or (2) through the "dealer" model under which a company coordinates all four aspects of the FF&E process, namely design, purchasing, transportation, and installation.

Regardless of whether you prefer the "agent" model or the "dealer" model, your goal as an owner/manager is to open hotel rooms as quickly as possible. Lost time means lost revenue, so you want to select a design and purchasing team which is strong in terms of three vital qualities - expertise, experience, and economic responsibility.

Expertise

Expertise, for example, comes from designers who are members of the American Society of Interior Designers (ASID) or International Interior Design Association (IIDA) and who attend conferences or continuing education courses to keep up on ideas and trends.

Similarly, ask about the qualifications of company personnel who handle purchasing, customer service, plus product delivery and installation. The most efficient system is having a single person assigned to be your point of contact and support during the entire order process - this significantly facilitates answers and solutions.

Delivery of products is always an issue of interest for hoteliers since shipping can typically run 10% to 15% of an FF&E purchase depending on various geographic factors - and transportation is certainly even more important now given today's rising fuel costs.

Look at three specific aspects of transportation - (1) shipping charges, (2) product handling, and (3) delivery dates. Any one of these can provide unpleasant surprises on the back-end if you don't properly understand and negotiate the details on the front end.

Strive for consolidation of pick-ups and deliveries - this reduces costs and handling damage, plus facilitates timely deliveries.

Certainly two important transportation goal should be to reduce truck traffic at the job site and to ensure that products are delivered exactly when they are needed for installation - not early so they can get damaged and not late so they will delay a job.

Be sure to remember that installation is the final step of FF&E - too often it's overlooked or is an afterthought. The reality is that a product is of no value to you and your guests until it is properly installed and ready to use. Most FF&E companies don't deal with installation. A few will sub-contract the work to outside vendors. Only a very few have their own team of installers on staff and it's these firms that offer you the most advantages.

Experience

Experience comes from having worked on a wide range of property brands, sizes and styles - from economy to limited service to luxury, as well as from resort destinations to business/conference centers.

A review of two items should be especially valuable in your evaluation of a company's experience - (1) an online portfolio which documents previous jobs and (2) relationships with qualified vendors plus with franchise brands.

The experienced purchasing company designs for travelers, but prices for hoteliers. There's a science to getting the best possible products at the best possible prices, without sacrificing quality or design.

So you want a firm which has the technical knowledge plus the real-world savvy to properly compare products, prices, quality, and vendors - and which can then recommend the options which best suit your timeline and budget.

For example, purchasing a table or chair or bed or other item may seem simple. However, there are literally dozens of manufacturers for every type of hotel product - not just in the United States, but in Canada and Mexico, and even in Europe, Asia, and South America.

A purchasing professional knows the advantages and disadvantages of these various manufacturers - including but not limited to reliability, shipping costs, craftsmanship, durability, and pricing.

As your partner in the purchasing process, your FF&E company should explain to you the difference in "hard" costs between various manufacturers - namely, price.

In addition, you and your FF&E representative should review the difference in "soft" costs - namely, poor quality or late delivery - which can quickly eat up any price savings and which can actually double or triple the real cost of a product over its usable life.

There is no hard rule of thumb, but a good purchasing professional can extend your original budget by 10% to 20% - not to mention considerably reduce your headaches and sleepless nights.

Economic Responsibility

Economic responsibility refers to the company's stability plus its purchasing power. Some companies, for example, will buy large quantities of products from various vendors which translates into considerable purchasing power and logistical leverage for customers.

Don't forget to check about credit and payment terms, something which is especially important in today's turbulent economy.

But your focus should also be on your own economic responsibility - specifically by minimizing change orders. They cost money and they should be avoided. The sure way to do that is by planning ahead thoroughly and then sticking to your plans.

Conclusion

So there you have it - a quick guide for lowering costs and raising value in your FF&E decisions.

Of course, hotel owners want to stay competitive and in compliance for the least amount of money, so for them "value" means price. On the other hand, hotel guests want to stay in a place that offers the amenities of their home and office while being friendly, tasteful, and meticulously maintained, so for them "value" means ambiance.

The right group of FF&E professionals can please both you and your guests - and in the process, enhance your property and your bottom line.

Amy Locke is director of interior design at Hatchett Hospitality. She works with franchisers and franchisees on a wide variety of hotel brands, styles, and themes – from economy to luxury, from resort to business conference, and from traditional to modern. Previous to joining Hatchett, she held a position in interior design with Ethan Allen Interiors. Ms. Locke earned a bachelor of fine arts degree from the Art Institute of Atlanta. She is completing a degree in feng shuiand is an allied member of the American Society of Interior Designers (ASID). Ms. Locke can be contacted at 770-227-5232 or Amy@HatchettHospitality.com Extended Bio...

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