ment . If products can be easily refinished and maintained , the engineering staff will be able to keep a property at like-new status for longer .
Value
When considering the value of a product relative to its useful life , owners should look at the initial purchase cost versus the disruption to operations that a product would cause if it had to be replaced before it was planned .
Maximizing the value of the purchase is a combination of finding the right product in the correct setting and getting as much use out of it as possible . A low initial purchase price may not be the best longterm decision for an owner in a high-use environment like a casino .
Owners should evaluate different aspects of the product when looking at its overall value . If the product is mission-critical ( like slot stools ), then the extra expense for a better-quality product that lasts longer may be worth the additional cost .
Another consideration relative to value is the overall cost of the product . Replacing meeting-space chandeliers is a very different financial decision than replacing lampshades in guestrooms . The lampshades will have an impact on all guests and may be more valuable to the guest experience .
Availability
The availability of the product and replacement parts also is part of evaluating the useful life of a product . If the product is easily replaced at a low cost , both operationally and from a cash perspective , typically the useful life is much shorter ; take the lampshade example above .
For products that are more difficult to replace , like custom fabric on a barstool , then expectation of a usable life is longer . The availability of certain products informs an owner ’ s decision for holding attic stock and their sourcing strategy .
If an owner implements a sourcing strategy to purchase from sources where product is easily obtained and production minimums are low , they mitigate their delivery risk and can likely extend the useful life easily because replacement parts are easily obtained . If an owner doesn ’ t have product that is easily obtained , then the best way to extend the useful life of certain products is to maintain a large supply of attic stock .
Attic stock of full pieces requires large storage areas and is often not feasible , so attic stock can be made up of component parts of product . When FF & E is initially purchased for a new construction or renovation project , owners should purchase component parts of furniture and lighting that the property ’ s engineering staff can use for repair and replacement .
For furniture and lighting , those items typically include door and drawer hardware , lampshades , finials , power harnesses , casters , drawer glides , drawers and door panels . The property should also purchase roll goods of fabrics used on the property . That includes drapery fabrics , upholstery fabrics , carpets and wall coverings .
Aesthetics
Casinos act as a laboratory for what ’ s next in hospitality design and guest experience , and are at the forefront of design innovation . This means that products may fall out of fashion or “ ugly out ” before they wear out .
If a property is well-maintained , it ’ s a testament to the housekeeping and engineering staff that it looks dated rather than falling apart . The options available to an owner who has a datedlooking property are easier to make because the starting point for a renovation is better . The fullscale renovation of a property is an opportunity to reset a design direction and restart the clock on the product life cycle .
Because good design has a subjective component , working with a qualified interior designer that writes buyable , biddable specifications that consider an owner ’ s expected usable life along with design aesthetics is the best route to maximizing the shelf life of a design and product .
At PMI , we perform capex studies and budget projections for owners to help with planning and financing for FF & E replacement . That type of study is a powerful tool for executives wanting to stay ahead of their property ’ s useful life .
Owners can use a capex replacement schedule to give their property management time to plan for displacement of property activities , coordinate design activities , and source and procure all of the product in a predictable method .
In the planning , development and renovation of casinos , smart owners understand that the usable life of the FF & E in their properties directly impacts their bottom line . They can make smart sourcing and purchasing decisions at the start of a project to extend that usable life and develop a detailed capex plan to keep their properties fresh .
Carl Long is senior vice president of Purchasing Management International ( PMI ), a full-service global sourcing and procurement company , providing FF & E and OS & E for the gaming industry .
2023 CASINO STYLE 39