Three ways to deal with supply chain challenges

April 4, 2022

As an operator for 10 years, I understand the anxiety associated with supply chain issues. There is nothing more painful for an operator than being unable to set up a great location because the equipment is sitting somewhere on a ship. Operators today are facing unprecedented supply chain issues, but there is a solution and many Fixturelite clients are thriving because of their willingness to adapt and overcome the challenge.

First and foremost, be realistic with yourself, your team, and your clients. As an operator, you have a few choices when it comes to setting up micro markets or any convenience services location for that matter.

1. Grin and bear it. Do not purchase extra equipment. Place the order when you get the account and let the client know that issues are around supply chain have extended the time to deliver a new market. 

2. Order in advance of your needs. Have plenty of inventory in stock and capitalize on the opportunity. When your less-savvy competitors are waiting for their order for what seems like an eternity, your company will be generating revenue for the simple reason that your company was prepared to act. You get the new accounts because you have equipment on hand.

Before I move on to option No. 3, I know what you may be thinking. “I don’t have unlimited access to capital. How do you expect me to pay for all that equipment?”

Fair question. The answer is simple. You need a reasonable and reliable financing partner. I learned long ago as an operator that equipment financing was essential to growth and success. While the interest rates might be higher than some consumer loans, if you have an opportunity to consistently place quality locations, the cost of financing that extra equipment will be more than justified based on your ongoing profits. Equipment financing is just another cost of doing business; no different than your vehicles, fuel, parts, and warehouse space.

3. Take a long look at your existing locations. Are any of your micro market locations underperforming? Conditions change, especially these days. That 350-person location that was properly equipped when you set the location up, is now down to 100 employees. We can help you revamp that market with a solution from one of our collections that is more appropriate for the employee count, enabling you to put those valuable assets to work in a different location.

We can help operators by introducing equipment financing resources, who are ready to work with you.

Contact us directly and we will be happy to point you in the right direction to start the conversation around equipment financing - the fuel that your business needs to grow.

Let’s talk about fueling up your business at the 2022 NAMA Show in booth No. 406

Email us: [email protected]

Call us: (888) 697-1508

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About the Author

Steve Orlando is cofounder and chief business development officer of Phoenix-based Fixturelite and a former operator of micro markets, vending machines and office coffee service. Orlando was also a top salesperson at home building leaders Pulte Homes and Del Webb.


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