Simplified Buying Process Increases Revenue
Better Products, Pricing, and Profitability
When it comes to maximizing revenue, small changes can make a huge difference. It’s a matter of finding opportunities to save money without sacrificing quality. We’ve learned that choosing the right products for each property requires someone who knows what’s available and how to get the right price.
Regency’s bulk buying experts have saved properties thousands of dollars by finding simpler answers to everyday needs.
"We’ve been able to secure better products at a better price, which has improved the customer experience. Guest satisfaction scores have increased, and ownership wins with decreased costs.”Kyle Scholten, Chief Financial Officer of the Ramkota Companies, Inc.
As we added more properties to our portfolio, we realized a need for improved top line revenue. Our properties’ general managers were facing increases in uncontrollable expenses, like labor, wages, and healthcare. To offset these costs, we needed to find opportunities for change and improvement in the costs we could control: supplies.
There are hundreds of vendors to choose from, and getting the right products for the right price requires careful selection and negotiation. Since that’s a job in itself, we couldn’t expect general managers to add that to their responsibilities and already-heavy schedules.
Regency needed someone who could alleviate the managers’ workload—so that’s what we did. We designated a central buyer to find the best linens, food, paper products, bathroom amenities, and more, and then negotiate prices (based on volume) for every property.
With pricing settled, the next step was to get each property what they needed. We located distributors across the country who could provide convenient shipping and equal access to supplies—no matter the property size.
We also added the convenience of true partnerships by building relationships with vendors. Each property has a set price for goods, and can call vendors directly whenever they need to reorder. We’ve standardized the process for each location, saving time and stress for managers and operations teams.
So far, we’ve saved thousands of dollars and have seen more profitable hotel operations. Properties now have better access to better quality products at a better rate—without impacting their bottom line.
- We saved approximately $140,000 per year by lowering the price of bathroom amenities (shampoo, conditioner, and body wash) from $0.98 to $0.76.
- We're saving millions after lowering trash can liners from $49 per case to $21 per case.
Simplifying our bulk buying process has saved money while building stronger relationships with properties—and, as a result, their guests.
Talk to us today about how we can work together to help your property reach its fullest potential.Contact Us