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!

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).

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!

The Bed in Bed & Breakfast

There are so many things to consider when furnishing your B&B guest rooms,  I really don't know where to begin.  But just let me say that some times more is less and other times less is more, depending on what it is.

Some B&B's will be purchased furnished.  Some will be a clean slate.  All will call out for your personal touch.  Take time to think about what you like in your own personal space and when you are traveling.  Identify a theme for the house and the rooms.  Don't skimp but spend wisely.  Make practical choices, not emotional ones.  Maybe start off with only one or two guest rooms and expand after you have the experience to know what you and your guests want.  Walk, don't run, until you are familiar with the path you are heading down.

Remember that business plan we talked about?  Hopefully you included a budget for furnishings and you will do your best to stick to it.  We had four guest rooms to furnish and a budget in mind.  We purchased the following and managed to stay almost within the plan:

• Two king size bedroom sets with full size dressers and one night stand each
• Two queen size bedroom sets with full size dressers and one night stand each
• Chairs for seating at least two people in each room (important to encourage people to sit on the chairs and not on the beds which is hard on the mattresses)
• Two  luggage racks for each room
• A writing desk for each room where guests can work or play at 
• Note:  we did not put televisions in our guest rooms (and no one has complained)

In hindsight, if we were to do it all again, I would have done things a little differently.  I would have

• Purchased two king size beds
• Purchased two single size beds for guests traveling together that do not necessarily want to sleep together
• Kept the full-size antique bed that came with the house available for guests who want to experience sleeping in a  beautiful Victorian bed
• Not purchased full-size dressers - guests rarely use them and they only gather dust
• Find room for a night stand on both sides of the beds

However you choose to furnish the guest rooms, the mattress you put on the bed will be your most important decision.  When looking for mattresses, Bob and I literally went around laying (and rolling) on mattresses everywhere.  If your guest can't get a good night's sleep when staying with you, they will never come back. We purchased Anniversary Edition Pillow Top mattresses from Ashley Furniture and we have never had a complaint about them.  We even have one of these on our own bed and, four years later, still love it.

Be sure to not overcrowd your rooms with too many things.  The original Kerr House had room themes that included a room full of teddy bears, a room of hats, a room with dolls and a room filled with walking canes.  Thank goodness there was not a room decorated with clowns!  All the items were vintage and beautiful but a little overwhelming.  Many returning guests have told us that they never realized how large the rooms are and how much they appreciate the open spaces now.  It's important to have themes (we went with the four seasons) but don't overdue it.  It will only create more dusting for you and accidental breakage by guests who want to touch everything.

Finally, have fun when decorating your rooms.  I shopped with a friend, Laura, who always discovered the best treasures and found unique, affordable items.  When guests ask me about some little thing, I always have a story to tell about when and where they were discovered.  If you love the rooms that will be conveyed to your guests and they will love them too.

I Have A Dream! But Don't Forget To Plan.

Many of us dream about having a B&B.  We picture ourselves living the life of Dick Loudon, a creative spirit who, with his partner, owns and operates an inn in a small, rural town that is both home and guest house to eccentric, lovable characters. Yes, it is a wonderful dream.  But while you're dreaming, be sure to take a look at reality, and make yourself a plan.  I am a firm believer that if you fail to plan, you plan to fail.

I started working on a B&B Business Plan years before we purchased The Grand Kerr House.  I had a spreadsheet that allowed me to quickly drop in numbers to see if a break-even point might be achievable.  Oh-oh, did I say "break-even"?  That's right, I never thought in terms of making a profit or getting rich.  If that is your dream, then a B&B is probably not going to be your reality.  A Bed & Breakfast is defined by Merriam-Webster as "a house or small hotel in which someone can rent a room to sleep in for a price that includes breakfast the next morning". Normally a B&B will have four to six rooms and provide only breakfast. It's not easy to get rich with such limited offerings.

My personal opinion is that you can break even with four guest rooms working alone, make a profit with six guest rooms working with a partner, and find yourself totally overwhelmed with seven guest rooms unless you have a lot of (payed for hired) help.  But that's just my opinion.  The proof will be in your business plan and how well you execute it.

A Business Plan is needed for many reasons.  It will force you to develop a realistic budget.  The Bank or SBA Loan manager will want to review it before investing in your dream.  It will help you to understand your market, your targets, your guest offerings, your pricing, and a myriad of other necessary things.  You can write your own business plan, hire someone to put one together for you or even call me for help (I will do almost anything for a fee).  

A Business Plan is not only useful at a single point in time, it will be useful throughout the live of your business.  Once you have your B&B up and running, you can (and should) go back to it at least annually to see what has changed or should be changed.  Your Business Plan is a living document that should never be ignored or allowed to die due to neglect.

Business Plans should include the following sections -

• The Summary or Abstract - a quick read for people not interested in the details
• The Objective - a general overview of your plan
• Market Analysis - customers, target market
• Lodging Competition - what do they have that you don't have, what will make you unique
• Competitive Strategy - market positioning and pricing
• Marketing Plan - advertising, promotions and other opportunities
• Management Structure - who does what
• Sales Forecast - projected sales and expenses
• Finances - start-up costs, sources of income

Be brutally honest with yourself during the process of developing your plan.  It's better to find the challenges early and implement the fixes before everything comes tumbling down around you.  

Of course Bob and I have had a few surprises along the way, things that did not work out how we thought they would, but a good plan has helped us keep living our dream.

The 5Ws of B&B Ownership

Congratulations!  You are the proud new owners of a Bed and Breakfast!  A million thoughts and questions are running through your head.  Answer these "5 Ws" in the beginning and you will be well on your way to finding the answers.

• WHO do you want to attract as guests?
• WHAT can you offer your guests?
• WHEN will you be open?
• WHERE are you located?
• WHY will guests choose you?

Goodness!  This could easily turn into a half dozen more blogs or I could end this right now.  But I will try to be brief and get you pointed in the right direction...

WHO do you want to attract as guests?  This will be your target market.  We knew early on that we did not prefer guests with small children or pets and we could not accommodate people requiring barrier free or handicap accessible.  But do not rule out these categories immediately.  If you can open your doors to these, you will find yourself in a market with high demand.  Since like likes like, we thought about what we looked for when traveling and looked at the history of our B&B for ways to build on it's five-star reputation.  

WHAT can you offer your guests?  Take the time to look at your competition, maybe even spend a night or two with them.   Don't offer what they offer, you can't compete where you don't compare.  Find out what is not available in your area and see if you can offer that.  Is your home architecturally unique, on the Historic Register or a working farm.  Popular B&B packages include Romance, Health & Wellness, Outdoor Escapes, Remote Working and Seasonal Getaways. Do you have a talent you can share like cooking classes, baking, scrapbooking, music, drawing, writing?  Does your B&B have a swimming pool, hot tub, sauna, gym?  Now is the time to think about what you love and incorporate it into your new lifestyle.

WHEN will you be open?  Do you live an area where all four seasons are attractive or are some seasons best to be shut down so you can take time to travel, relax or work on home improvements.  Will you be open seven days a week or only weekends because you have a day job Monday through Friday.  Check the occupancy numbers of your neighbor lodgings (a quick look at their reservation calendar can tell you a lot with a glance) and see when their bookings are occurring, then think about why.  

WHERE are you located?  Are there local attractions that guests will be visiting?  Look at the 30 mile radius around you for an amusement park, zoo, museum, casino, hospital, college, wedding venue, wineries, anyplace of interest that people will be visiting.  Are there local bike paths, kayaking, golfing, skiing or fishing spots for guests to enjoy? Find the places around you that your family and friends recommend and list these on your website.  Work with your local business owners to put a package together for your guests and they may, in return, recommend your B&B to their customers.   

WHY will guests choose you?  Naturally, once you have your five-star ratings and start showing up at the top of a google search, guests will choose you first.  But until then, you need to make sure that you have an inviting website, fascinating Facebook page and an interesting blog.  Stress the W's we have talked about so far and make it easy for people to reach you.  Pick up the phone when it rings, return calls immediately and respond to emails the same day.  Accept a last minute reservation (in the beginning our motto was "always be prepared") and give your guests what they want (within reason).  Make it easy for guests to provide feedback ratings on google and remember that word of mouth goes a long way.

Well that's a lot of food for thought.  Did I miss anything that you would like to ad?  Or have I said something that you find questionable or outright wrong.  Let me know your thoughts and thanks for taking the time to read.

Thinking Of Opening a Bed & Breakfast

Well it's a New Year and I am committing to blogging.  I am making a note in my new 2021 Planner to "Blog" whenever I have the time, energy and something worthwhile to say.  As B&B owners, we often have guests that say they envy us our lifestyle and then ask us all sorts of questions about what is it really like to own a B&B (it's not all Gilmore Girls or Nights In Rodanthe).  We have had Hospitality Students and Aspiring B&B Hosts spend anywhere from a day to a week with us to observe and learn (with one young lady running out after six hours saying she didn't want to work this hard!).  We recently collaborated with Jon Nelson who is writing a book on Bed & Breakfasts and asked us some very interesting questions.  We are never at a loss of words when people ask questions, so I guess I am going to start sharing some of our information with you in these blogs.  

Please feel free to ask your burning questions and add your own comments.  There are no dumb questions and we certainly do not have all the answers.  

When thinking of opening a B&B, it is important that you have a vision of your target market and an understanding of what you have to offer that will initially attract guests and have them coming back for more.  Whether you are buying an established B&B or starting a new Guest House, you have to do what will make both you and your guests happy.  Sometimes carrying on with the old will work and sometimes you need to bring in the new.  If you are not happy, then your guests will not be happy.  Create a place where you would like to stay.  More than once I have said to Bob "I wish we could take a vacation here".  It's that simple.  

So how did Bob and I find ourselves at The Grand Kerr House - well, according to an article submitted by Gabby Deutch to The Blade in June 2016...

"Nearly 100 people gathered Thursday night in the rain at a public auction in the village of Grand Rapids for the historic Kerr House, though most there were not interested in bidding - they just wanted to see the beautiful home before it sold.

The three-story Victorian-era mansion sold to Bob and Cathy Trame of Maumee....When asked about their plans for the home, the Trames said they are 'exploring multiple ideas'."

That's right, we were clueless as you can see in our smiling faces on closing day.

Yes, I always dreamed of owning a B&B but, after two knee replacements and starting to look into retirement,  I had decided that I no longer had the energy for such an undertaking.  However, I guess Bob and I both got caught up in the excitement of the event and, somewhat impulsively, we threw our hats in the ring and the rest is history (we have a much longer, animated story that we share with house guests when asked).  With the opening of our doors, we tried several ideas - some that worked and some that did not.  And that is what I will talk about in my next blog.  

Let me know your thoughts - you know I am going to tell you mine!  

Cathy