Brainstorm

My brother and sister-in-law recently purchased a small, older motel in Branson, MO. It has turned into a nightmare for them: good help hard to find/keep, surprise repairs, etc.

I was suggesting there may be a way to use the facility/location, which is generally full during this time of year, in a way that would generate another stream of income, somehow. If they could pay the help better, they would probably get better help, but financially it is very nip and tuck. They do have a good strip location.

Of course, it is easier to come up with the idea of additional income stream than to come up with something that would actually work. They are pretty discouraged, so this is my way of trying to support them.

Any suggestions from this innovative, outside the box thinkers would be appreciated.

Thank You,

Jerry

[MMacGillivray]

Hi, Jerry - does the motel have a web site at present? I'm finding it hard to be creative without more info from you.

.... you don't say if they have a dining room which is open to non-residents; or if the motel needs a face lift, a new name, a complete makeover.

Margaret

Jerry,

I may be a bit harsh and please don't take this the wrong way... But I've worked with literally hundreds of businesses over the years with cash flow problems. And almost always the biggest "problem" with the business is that it isn't being managed and marketed properly. NOW let me say that probably a great deal of the "rust" that has accumulated on this business is from the prior ownership-- I've seen that happen more times than I could count! And your relatives may have walked into "it" with a terrific "can do" attitude BUT business turn-a-rounds are pretty hard to pull off. Even for the most skilled businessperson.

My questions are:
1. Do they have a marketing plan? And if so what does it entail?
2. Do they have a set of Standard Operating Procedures that are WRITTEN and followed through on? I mean EVERY operation within that business needs to be written down. Not only does this ensure consistent service but it's a damn site easier training employees by just giving them a copy of the SOP's as opposed to having to verbalize all instructions-- which human beings are horrid at because we're always forgetting something so that our instructions are not consistent.
3. Has anyone given them an honest critique of their business and how customers are treated?

In this instance, like most others where the primary business model is failing, the natural reaction is to "find other streams of income". My problem with this is that if they aren't managing the main business model correctly how can they be expected to pull off a successful income stream using a secondary business model using the same property?

I doubt "out of the box thinking" is needed. What is needed is to make the current operation one of the top-10% in their area, which in the hospitality field comes down to 4 things:

1. Customer service
2. Cleanliness
3. Consistency
4. Marketing

My guess is that they are failing in at least one of these areas.

Correct the problems, do a mass mailing to people that have visited previously offering a nice discount and get the ball rolling!

Wow, that was quick! Two responses already. Thank you very much for your thoughts.

I don't think the motel has a website at present--or if it ever did. It is small and nothing fancy from what I understand--I have never seen it. They have kept the name but have put on a new roof and repaired rooms, upgraded furniture, repaired the outdoor swimming pool, repaired plumbing and have done some cosmetic facelift to the outside. I don't think it has a separate dining area.

During this time of year they keep fairly close to full occupancy, perhaps because it has low end rental fees--upper $20's I think.

I don't know about a business plan, though they seem to get a lot of repeat business from previous years. I would guess their SOP is based pretty much on what was done with the previous owner, but don't know if it is written down.

Both my brother and wife are sticklers for cleanliness and have customer friendly personalities but they are new to this business. Marketing may be a weakness, except that they seem to be close to full most of the time. Putting the rent up a bit higher might help, but may put them above nearest competitors.

It was my idea to try to figure out how to maybe develop another stream of income that might be compatible with the business and location and that is far as I got because I'm not a very creative type.

Thanks, again, for your consideration. I realize this might be a nearly impossible idea, but doesn't hurt to throw it out.

Jerry

[Ankesh]

Few ideas:

1. Contact the local pizza place. Ask them if they would like to place their pizza ads in all of the rooms for a fee. You could either charge them a monthly fee or a fee per pizza delivered to the motel.

2. Make extra beds available for free. This will attract families to your brothers motel.

3. Send a postcard to all the locals explaining how the motel is a great place for one of their guests to stay. And if they refer someone, the motel will give them a gift. (Could be a t-shirt or a mug or something - which wouldn't cost more than $5 to make.)

Have them contact the local SCORE group (Service Corps of Retired Executives) through their local college or county extension office. They'll get EXPERT help, totally free, that may just turn the tide for them.

Best of luck to all.

Sandi Bowman

I worked briefly in the hospitality field (reservations etc) and some of the extras there that could be tried, once the basic service is on solid ground, are co-op with local florists and fruit vendors to supply custom baskets and arrangements for special occasion guests celebrating anniversary or birthday etc.

Provide a resource book of other businesses such as dining facilities, meeting rooms, entertainment, even a resource to find other accommodations when they're filled. If there aren't any referral co-ops among the hotels/motels, why not set one up? It's a great way to fill up those last minute cancellations.

Co-op with bus lines and tour lines to use their place as a resource. Lots of ways to handle that...just make sure there's no snafus and the word of mouth will keep the ball rolling.

Provide postcards that feature the motel as part of the 'scenery' selections.
Make the card attractive and offer as a complimentary gift to the guests.

Lots more but this should get things rolling along for guests.

Now to the workers: make their place THE place to work by offering WANTED extras and incentives that other employers don't. This could be anything from complimentary entertainment tickets to meal discounts, a customer comment reward system with a nice gift (or cash) to the one with the most positive feedback in a week or month etc...

Sandi Bowman

JPS,

Thanks for ASKing.

Financially it's nip and tuck - and - they are full most of the time.

Oh My! Better hope it doesn't get Unfull. If it's nip and tuck while full, it's a money vacuum when not full.

Have you - or them - looked to see what Other Successful Motels do that make them successful - even if they are in other countries?

Have they checked the lightbulb power? Maybe go to 75w globes insted of 100w. Of all the lights in the place that should lower the power bill.

Motels in Australia offer as Standard "tea and Coffee making facilities" - a few packets of biscuits, a few single serve tea bags, a few single serve coffees, some single serve long life milk, and a kettle. This was sadly lacking when I visited the states a whiles back.

Make a List of all the things to do. Then cross them off one at a time. Otherwise they won't know where to start.

Have they read Emyth? Unless I am mistaken there is a good story of a Hotel/Resort and how they got successful.

Question: When you say "High 20's" what do you mean? $20 a night?

Michael Ross

[MMacGillivray]

During this time of year they keep fairly close to full occupancy, perhaps because it has low end rental fees--upper $20's I think.

Hi, Jerry - one of the hardest things to do when you stand behind the counter of a store or any other business is to believe that you are worth more money .... because you know the cost price of everything, the gross profit element can seem a huge mark-up on your overheads.

If your family are improving the comfort, the appearance and cleanliness, then they should charge more - another $1/person/night would soon add up to better revenue. $3/4 might take the pressure off completely. If the competition is charging $30/night - then perhaps the paying guests are expecting to pay that for the quality of service and accommodation that your folks are providing.

Your statement also implied that there are parts of the season where they have vacant rooms; their real challenge is to fill more of those bednights by improving the marketing then. At the very least they should have a good idea how many rooms they have to let each year to break even and the consequences of discounting rooms in the low season to get business.

The idea of a free postcard to give to guests is good; if you get a good digital pic of the motel, Vistaprint does free print offers on postcards - and you can make sure that the contact details are on the reverse.

I think it is essential that the motel has a web site; even if your folks don't take online bookings, more and more people make accommodation enquiries online. That might make the difference between being full out of season and having beds to spare.

The motel must have a leaflet which is sent out when people enquire about accommodation; do they also advertise in local tourist maps or any other area specific initiatives?

Networking with similar businesses in their area - other motels and guest houses - is also a good idea; although these businesses are competing for guests, they also have times when they can't fulfil demand and need to be able to recommend somewhere for overflow enquiries. Invite them to see the motel and the improvements. Make sure that they like what they see.

Best
Margaret

I agree with Margaret about the website. For the first couple of years when my folks opened their cottages by the bay, they were never full. I put up a website and we advertised the URL in some annual tourist magazines and the next season the website was responsible for 35% of the new customer bookings. People from anywhere could view what they had to offer.

I also prompted them to have a box where they collected email addresses and made sure they asked customers if they would like to receive emails. This prompted some customers to return every year. There wasn't any problem keeping the cottages full after that.

Best Regards,
Steve MacLellan