“There are a lot of procedures that affect the bottom line. We find that most hotels aren’t weighing products that they’re paying by the pound for,” Ferraro explains as an example of his company’s services. “Part of what we do is write specifications and procedures for properties to help make sure they receive everything they are paying for.”
Many of ARO’s challenges center on pricing:
- Competitors seek to undercut ARO on pricing to lure clients, even though competitors can’t sustain low-cost initial offers.
- Some companies have markups or back-end administration fees that add to costs, but aren’t communicated upfront.
- Writing contracts to show pricing to clients can be time consuming.
Transparency Into Pricing and Contracts Is Key
Being transparent with clients is a guiding principle for ARO. The company expects the same from its business partners. That’s one reason it values working with Provista. The partnership is in its third year.
“Honesty is important—which is what brought me to Provista,” Ferraro notes. “I like their transparency.”
ARO uses its expertise to help clients understand product labels so they know exactly what they’re purchasing. The company also offers suggestions on ways clients can save money, which is where Provista contacts really shine.
“Provista has helped us save as much as 60% with some of our key clients,” Ferraro points out. “We go through and look at every single item they’re purchasing—especially the top 100 items. That’s where the majority of the money goes, so that’s where there will be the biggest impact. That’s one of the areas that’ll get you to true potential on savings.”
Price protections are important, too. “The pricing stability that Provista delivers is a differentiator,” he adds.
ARO Optimizes Provista Hospitality Contracts for Clients
Provista’s broad hospitality offerings enable ARO to get optimal pricing, deals and value on contracts.
“Provista helps me offer a big portfolio at a major savings. And because of their safe-harbor structure, there’s nothing hidden,” Ferraro says. “We’ve always had good deals, but Provista’s leverage brings it to a new level for us. Now when we recommend products, Provista has us covered and it’s a quicker return on investment.”