Services

2. 26 Services

3. You Should Be Able To: • Identify management considerations surrounding the selection and procurement of services. • List and describe the types of services that might be purchased by a hospitality operator. • Outline the general procedures used when purchasing services.

4. You Should Be Able To (cont.) • Create a specification outline for services. • Explain security issues that may arise when purchasing services. • Describe the major selection factors for services.

5. Management Considerations • Fixed vs. variable costs • Should I buy or should I do it myself? • Outsourcing? • Lease contracts • Hiring contract workers

6. Typical Services • Waste Removal • What is included with CAM fees • Pickup schedule • Grease traps • Recycling • Financial • Banking • Loans • Payroll management

7. Typical Services (cont.) • Groundskeeping • Common in CAM • Landscaping • Snow removal • Be specific • Pest Control

8. Typical Services (cont.) • Advertising • Newspaper and magazine • Radio and television • Brochures and flyers • Phonebook • Typically cost is based on circulation • Sponsorship of a local team

9. Typical Services (cont.) • Consulting • Designers • Feasibility researchers • Computer specialists • Environmental assessors • Decorating and remodeling • Maintenance • Endless number of repairs

10. Typical Services (cont.) • Vending machine • Insurance • Healthcare • Property damage • Liability Insurance

11. Typical Services (cont.) • Payroll • Control payments to others • Federal taxes • Social Security tax • Medicare tax • Accurate reporting of payroll expense • Controls skimming by payroll clerks

12. Typical Services (cont.) • Laundry and linen • You can buy your own and use a cleaning service • You can rent linen • You can buy your linen and create a cleaning facility • Other • Cleaning • Knife sharpening

13. Security and Services • Watch for scams • Check bills for services and initial • Beware of “extra” invoices • Don’t pay deposits to unknown suppliers