Sunday, February 21, 2021

Nothing in Life is Free - Beware of Hidden Fees!


Let me begin with a great big disclaimer.  I am not a financial wizard.  Too often I learn by my mistakes.  Everything contained here-in should be read with a bit of skepticism on your part and, if you see the error of my ways, please correct me.  Finally, what I am writing here captures only a single moment in time.  Everything is subject to change.

Now that I have that out of my system, I am going to express my opinion on fees that B&B Owners pay.  None of these are actually hidden but, if you don't do your research, you may not be aware of where your hard earned money is going.  Ignorance can be bliss but knowledge is power.  

As a child (many, many years ago) I remember my best friend, Robin, getting a new bike.  It was so beautiful and I wanted one just like it!  I told my father that Robin's dad didn't even have to pay for it - he simply gave them piece of plastic, signed a paper and the bike was hers.  My father explained to me that, even though Robin's dad did not have to pay today, he would have to pay sooner or later and there was danger paying tomorrow for your hamburger today.  I did not get a new bike that summer and, as I recall, Robin did not get to keep her bike for long. 

Today, very few people use cash and plastic has become the norm.  There are many advantages and pitfalls for both the user and the receiver of credit transactions.  Today I am writing as the recipient of plastic money though I could give you quite an earful about using these devil chips for purchases.

We primarily process our credit card transactions through Square and Quickbooks.  Each charges a flat fee per transaction plus a percentage of the charged amount.  Each allows for swiping the customer credit card through a card reader, manually entering the credit card information on their app or having the customer pay their invoice directly.  Below is a summation of the charges that can be incurred.









Charged Amount

$ per transaction

% fee per Transaction

Fee For   $100 Charge

Fee For.    $150 Charge

Fee For    $200 Charge

Square

Swipe Card

$0.10

2.6%

$2.70

$4.00

$5.30


Manual Entry

$0.15

3.5%

$3.65

$5.40

$7.15


Invoice

$0.30

2.9%

$3.20

$4.65

$6.10


Stored History

$0.15

3.5%

$3.65

$5.40

$7.15








QuickBooks

Swipe Card

$0.25

2.4%

$2.65

$3.85

$5.05


Manual Entry

$0.25

3.4%

$3.65

$5.35

$7.05


Invoice

$0.25

2.9%

$3.15

$4.60

$6.05

Additionally, these companies may charge a monthly or annual fee to use their services.  Services can include invoicing, book keeping, customer records, etc.  We use both service companies for different reasons but try to maximize our income by reducing our fees when collecting payments.  Its very important to understand where your money is being spent so we encourage you to take a close look at the fees you are paying, after all, a penny saved is a penny earned!

Image result for piggy bank pictures

Saturday, February 13, 2021

Having Reservations About Your Reservation System

If you build it, they will come...but only if you make it easy to book your rooms.

How people make their reservations has changed drastically over the past years.  Prior to the internet, people would reference Bed & Breakfast guide books that described the B&B and gave them a phone number to call for additional information and to (hopefully) make their reservation.  Potential guests would speak directly with the B&B Owner/Manager who would open up their desk top calendar and literally pencil in the reservation information.  It was a personal experience that allowed people to get to know each other and let them decide if your B&B was a good fit or not.  Thanks to the internet, reserving a B&B stay is a totally different experience today.  Many people search on their phones, iPads or laptops for places by location, ratings, pricing, offerings, whatever.  When they spot something of interest, they click on the website and, according to Contentsquare's 2020 Digital Experience Benchmark report, spend an average of 62 seconds on a website page before deciding to look further or move on to the next site of interest.

In our personal experience, 50% of our reservations are made with a phone call and 50% are made on-line.  We need to be available to answer the phone 24/7 and we need to have a reservation system that allows people to book easily then and there.  We cannot afford to lose half of our business because we are not able to answer the phone or because our reservation system is not intuitive or user friendly.

As a B&B Owner, you have several options regarding Reservation Systems.  Some B&B Owners have reservation software linked to their website, others allow guests to reserve only through booking companies such as booking.com and airbnb.com and others still take reservations with a phone call, pencil and paper.  

When we were setting up our website, I went with the reservation software provider that our website developer suggested.  I will admit I was feeling a bit overwhelmed during start-up so I took the path of least resistance.  When deciding about your reservation software you can do internet searches, reach out to other B&B owners to see what system they are using or trust your website developer.  Searching for alternatives on the internet, I am seeing that there are no less than 80 reservation software providers! That's a lot of choices requiring a great deal of research.  When looking at my current software provider, I see that they are categorized as mid-priced with a customer rating of 4.76 out of 5 stars.  I have no complaints with them, they are very responsive when I need help and I am now past the learning curve. Sometimes I think "If it aint broke, don't fix it" and other times I think "Change can do me good" especially if it saves me money and/or time.  

We need to ask ourselves, what do we really need in a reservation system?  Reservation software providers can offer website development, marketing emails, promotional sidebars and room pictures on your calendar, travel agency integration, user friendly calendars, credit card processing, reports that include occupancy summaries, guest information and more. The sky is the limit!  But remember, you get what you pay for and you pay for what you get.  When considering the cost, ask yourself how many room nights will it take to pay for this service, what do I absolutely need and what can I do without. 

This is something that should probably be re-evaluated annually.  It never hurts to shop around.  If you are looking, I have found a very helpful website for myself:  https://www.softwareadvice.com.  This site allows you to compare different reservation software suppliers and can help you identify the right software for your business. If requested, one of their adviser's will work with you to compile a short list of systems that meet your needs and budget -- all in about five minutes.  (Please note that I am sure there are other software advisors that will help you and I am not recommending this company only, it just happens to be one I connected with).

pencil on opened notebook


Friday, February 5, 2021

The Breakfast in Bed & Breakfast



    Breakfast has always been my favorite meal, it's such a wonderful way to start the day! For as long as I can remember, I have loved inviting friends and family over for breakfast brunch.  Forgive my bragging but I make a great quiche and people love my pumpkin bread.  So, when we purchased our B&B, I was very excited about being able to serve breakfast to our guests whom I imagined would sing my praises for years to come.  Much to my disappointment, but to the delight of our guests, Bob has turned out to be the breakfast cook.  Guests love his Omelettes made to order and his French Toast never disappoints.  I have become the person in the background who sets the table and clears the plates.  
Many of our 5-Star Reviews include the comment "Awesome omelettes for breakfast!' but we have never received a comment about the beautiful table setting.  Bob and I now have a kitchen dance that we perform together and, most often, I have to let him lead.

     Once we established who is the chief cook and bottle washer, we were able to move onto the many other considerations that go into serving Breakfast.  When creating your breakfast venue, you need to think about so much more than what will be on the breakfast plate...

     What time will breakfast be served.  Will you tell your guests when they need to be at the table or will you ask them what time they want to eat.  There is a lot of thought that needs to go into this seemingly simple decision.  Do you have room at your table to serve everyone at once or are you restricted to seating only a few at a time.  Do you have guests that are not comfortable eating with others or guests that consider breakfast with strangers to be part of the B&B charm.  Do you have an outside job or other activities that require you to be done serving by a specific time so that you can get on with your other commitments.  Will you offer a carry-out breakfast for guests that want to eat outside of your available time or will your guests go hungry.  For our guests, we offer a breakfast window of 8:00 am to 10:00 am.  We have served breakfast as early as five in the morning and have sent people packing at check-out with their breakfast in a box.  It's important to talk with your guests and try to get a feel for what they need.  We try to be as flexible as possible but that may not work for you. 

     Will you offer formal or informal dining.  I personally love to have the table set in all its splendor with a linen tablecloth, fine china. sparkling crystal, good silver, individual condiments and a small bell to ring for service if I have forgotten anything.  In our Victorian home, this setting seems appropriate.  However, someone told me that he did not want to stay at our B&B because the website breakfast pictures were too fancy and made him uncomfortable.  Think about your target market and set the table for them. Consider clean up (dishwasher safe or not) and will your heart be broken if someone breaks your family heirloom china. As an alternative to formal dining, you may choose to set up a buffet for guests to self-serve themselves.  One buffet I really enjoyed was an Oatmeal Spread that had every imaginable garnish available - a true work of art and a hearty breakfast!  Other buffets offer cereal choices along with baked goods, juice and hot coffee.  Like I said, I love eating breakfast and I've never met a breakfast I didn't like!

     Will you serve Family Style or Plated Meals.  For a large group of guests, that are traveling together, family style can be a great option.  However, if people are not traveling together, they may not like breaking bread with strangers.  Family style for smaller groups could result in more waste.  We stayed at a B&B where they served their three guests with heaping plates of scrambled eggs and sausages.  We didn't eat half of it and I still wonder what they did with the leftovers.  If plating your meals, be sure your plates do not look half full but don't overfill them so that the foods are touching each other (some people abhor having their eggs touch their bacon).  We start off every breakfast with fresh fruit, baked goods, juice and coffee.  Our usual breakfast offerings include bacon with an omelette and hash browns or French toast and a side of eggs.  Bob's motto is "You don't have to eat it all but you can't go away hungry".  We have had only one complaint from a guest saying that we fed her too much.

     Serving your best breakfast may not happen on opening day but, with practice, you will find what works for you and your guests.  It's important that everyone, including you, is comfortable and satisfied with the results.  Never forget, breakfast is the most important meal of the day at your B&B!