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

Overview1. 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!

• 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.

Introducing Tradavo: Your Retail Partner From Design to Supply

Design Services: Getting Retail Right – Right from the Start!

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

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.

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

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:

Optimization: Fine tuning displays, merchandising, and assortments for optimal retail performance

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 SnacksSalty SnacksHealthy SnacksQuick Meals

Be sure to keep the most popular products at eye level including:

ChocolateSalty SnacksCookies/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 ManagerDo 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 GuidelinesThe 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 Janine RobertsLodgian Account Manager Director Sales & Marketing303.845.1955 303.883.2335rrann@tradavo.com jroberts@tradavo.com