Manage your FF&E and OS&E budget more efficiently. Speak to a product expert today.
Managing hotel FF&E (furniture, fixtures, and equipment) specification budget can be a challenge, but with the help of a collaborative platform like Fohlio, it can be made much easier. Fohlio is your one source of truth for design and procurement data, making it the ideal tool to help you manage your FF&E specification budget and prevent cost overruns.
Let’s discuss the most efficient way to manage FF&E specification budgets, prevent cost overruns, and manage budget increase approvals using Fohlio.
1. Establish a clear building budget for FF&E and OS&E.
Define the total budget for FF&E items, taking into account the cost of each item and the overall cost. Overall cost includes purchasing and installation.
Additionally, you need to factor in potential future costs such as maintenance and repairs so that you don’t end up with unexpected expenses down the line.
You’ll be able to see a complete picture of your total costs in the financial analysis section.
2. Monitor expenses to prevent going over budget.
Regularly track expenses in Fohlio to ensure they remain within the established construction budget. The project budget tracking area allows you to see how much is left in your funds so you can immediately see cost overruns before you ever purchase anything.
You might also want to consider tracking how much your materials actually cost after purchasing, so you can compare it to the budget you planned for. This will help you see how accurate your budgeting is and spot common factors that you may have overlooked.
Additionally, because Fohlio is integrated with major accounting software, it’s easy to ensure that all financial transactions are properly recorded.
3. Prioritize FF & E and OS&E items.
Determine the priority of FF&E items based on their importance and allocate the construction budget accordingly. For example, you can use the area planner to prioritize higher-ROI areas like the lobby (instead of, say, the baggage storage area).
You may also want to consider investing in quality pieces that will last longer than cheaper alternatives, which will likely cost more in the long run.Additionally, security systems or emergency lighting should take precedence over decorative elements like art or wall coverings.
4. Consider FF & E and OS&E alternatives.
Evaluate alternative options for FF&E items that offer the same functionality at a lower cost. Work with as many vendors as possible in order to widen your options pool. Fohlio allows you to do this efficiently so that your materials savings aren’t eaten up by the time and effort it takes to find and manage options.
Additionally, consider renting or leasing equipment instead of buying it outright. This may be a more cost-effective option if you only need an item for a short period of time or if its use is seasonal.
It’s also wise to look into purchasing used or refurbished equipment as this may be a cheaper option without sacrificing quality.
5. Communicate changes.
If the budget needs to be increased, communicate the change and seek approval from stakeholders, providing a clear justification for the increase. For example, perhaps the original budget didn’t account for all the items needed.
Remember to remain transparent and concise. Explain why there is a need for additional funds, what type of items need to be purchased, and how much they cost.
It could also be helpful to provide examples of how increases in certain areas may prevent future costs for occurring in other areas down the line.
Make your building budget approval management workflows more efficient too, because time lost is money lost.
6. Collaborate with suppliers.
Work closely with vendors to understand the cost of FF&E items and negotiate favorable terms. Research suppliers in advance, evaluate the quality of the products they offer, and read customer reviews. Additionally, be prepared to provide detailed information about what you are looking for and provide a clear budget when discussing pricing.
Arranging meetings with suppliers can also help establish a stronger relationship and create an open dialogue. During these meetings, ask questions about their product offerings as well as their policies on warranties, returns, and discounts. This will not only allow you to get a better understanding of their service but also give you greater bargaining power during negotiations.
Additionally, it’s important to emphasize that you value loyalty through long-term relationships so that supplier preferences are taken into account when making negotiations.
Make sure to keep records of conversations with suppliers so that there is no confusion or miscommunication down the line. This includes notes from both in-person meetings and phone calls, as well as any emails or other forms of communication. Having this information on hand also makes it easier to refer back to it if necessary or dispute any issues that may arise in the future.
Finally, seek out vendor discounts or bulk orders as these can often result in significant savings. Again, Fohlio allows you to reap the benefits of comparing options without having to sacrifice time and effort.
With Fohlio, hospitality brands can standardize specification and centralize data, making it easier to enforce brand standards, lower procurement costs, and reduce delays. The platform provides a collaborative environment for designers, purchasers, and third-party team members to work together to create memorable experiences for guests.
So, if you want to unlock the ultimate guest experience with design consistency at scale, give Fohlio a try today!
Learn how to:
- Save days of work with faster specification
- Create firm-wide design standards
- Automate and centralize procurement
- Keep your whole team on the same Page
- Manage product data
- Track budget against cost in real time.
- Prepare for asset valuation
Published Feb 8, 2023