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Tradavo Advice

Five Ps of Hotel Retail

Posted by Hannah Walters

Wed, Apr 05, 2017 @ 16:04 PM

 

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A properly managed market or pantry can earn the equivalent profit of selling one to three additional rooms at your ADR. Every square foot of your lobby has great earning potential and the lobby retail space should be managed and maintained with as much care as a guest room. 

For a Highly Profitable Market or Pantry, 

 Follow The Five Ps of Hotel Retail

Pricing 

Many hoteliers use keystone pricing which leaves money on the table or depresses sales. There must be a strategic pricing plan that delivers at least a 55% volume weighted gross margin for the entire retail space. 


Planogram

A planogram will maximize your merchandisable space based on your guest profile, local fare, and sales data. Having a customized and maintained planogram is critical for your retail success.  


Product Placement

Use a shelf management system (SMS) on all shelves (including fridges and freezers) to keep your market looking bountiful, organized, and fresh. It maximizes shelf space, maintains a professional presentation, and displays products in a way that directly appeals to the guest. 


Product Ordering

Keep your shelves stocked by planning ahead for expected occupancy levels. Orders should be made weekly or bi-weekly, depending on movement (or contact us about our auto-replenishment program). If there are gaps where product should be, guests will assume the market or pantry is not regularly attended to, making items less appealing for purchase.


Product Sourcing 

Product sourcing should be very quick and simple.  Utilize a rich e-commerce platform -- one that simplifies shopping, manages the planogram shopping list, and handles credit card or billing terms. Or find a supplier who will do the ordering for you. The siren song of low pricing at the club store works against your goals of earning high revenues and profits.

 


Are you ready to earn higher revenue?

Click below to maximize your retail space,obtain higher profit margins and increase guest satisfaction! 

Contact Tradavo Today!
 
 

Topics: hotel pantry, wholesale products, Market, retail management, F & B, Hotel, Ps, Retail