How to command subsidies and minimum guarantees in 2023

Jan. 10, 2023
This is an excellent time to secure a monthly minimum or a subsidy program, which will generate highly enhanced revenue levels.

How can we get a monthly minimum guarantee for that micro market? Just as a related Fixturelite sponsored article (featured in the Micro Market Design newsletter) points out that this is the best time ever to ask your client to contribute to the cost of an exceptional breakroom experience, it is also an excellent time to secure a monthly minimum or a subsidy program, which will generate highly enhanced revenue levels.

Commissions? Seriously?

Operators are in a true position of strength. Amazingly, we hear stories from an operator about a large competitor that is paying aggressive commissions to sign new micro market accounts. Any operator who is paying commissions may be misunderstanding the current market conditions. Right now, operators are the ones who should be getting paid by locations, and the savviest operators – many are Fixturelite clients – are benefiting because they are taking the correct steps.

Faced with unsure daily employment counts due to hybrid scheduling, the rapid extinction of the employee cafeteria and an insatiable desire by employers to make the workplace inviting, not only to entice workers to return to the office but also to satisfy those who must work in the office every day.

Have no fear – take the high road!

Once operators get over the fear of asking for subsidies and minimums (there is obviously some fear if some operators are still paying commissions) and take a proactive approach when selling or rejuvenating a market, they will be rewarded with revenues that can potentially surpass pre-pandemic numbers, even with today’s reduced head count.

The emphasis on design creates a tremendous opportunity for operators to present a basic if-then proposition. If I make this investment of time, effort and money in design – if I take the steps to deliver the collaborative workplace that you and your CFO are dreaming of – then I need to be assured that our revenue objectives are met. And, of all people, the CFO should understand that.

Here is how the conversation goes …

Office manager: “My CEO is looking to convert the micro market into something special. A destination for the employees to relax, collaborate and refresh. We want them to be excited about the space and the products that are in it. Obviously, we want exceptional service.”

Operator: “We are excited about the opportunity. We work with Fixturelite, the leading supplier of micro market retail displays, seating and design solutions, so with their support, we can put something together that is truly exceptional. We will bring in the experts to ensure a complete success for your company.”

Office manager: “That sounds great.”

Operator: “Is it safe to assume then that you want us to go well beyond the usual type of micro market and, with that in mind, do you have a budget for what you are able to contribute toward the project for some of the special features?”

Office manager: “We do – but let’s see the design and the plan, and we will certainly be open to that.”

Operator: “Knowing that your number-one priority is for your employees to be excited about the space and the products that are in it, what I would like to suggest is a program that a number of our existing clients have embraced to ensure exceptional service and product presentation, for an optimal employee experience – even though they have less employees in the office, which can be a real challenge for an us.”

Office manager: “What program is that?”

Operator: “Some of our clients like the ideas of a monthly minimum revenue guarantee, which allows us to operate the market full speed ahead at all times, without any fear of spoilage issues, which would naturally cause us to restrain our inventory levels and selection. For your staff, the market is well stocked, 100% of the time.”

“If you truly want to generate excitement around the micro market, we can create a specialized subsidy program for your market. For example, you folks would cover 50% of the cost of every item in the market, allowing your employees to enjoy steep discounts on every product, from beverages to snacks to sandwiches. That has been very well-received.”

“Which of those programs, along with an incredible design, do you think would work best for your company?”

Office manager: “I know my CEO will be excited about the subsidy program, but let’s talk about the micro market space.”

Operator: “Absolutely – let’s sit down one week from today and I will get Steve from Fixturelite in on the meeting. I will brief him, and we will work together to lay out a design and a plan that will dazzle you and your CEO. That is a promise.”

80% sales success rate

The next step for the operator is to sit down with Fixturelite to explore ways to create and present that dazzling breakroom space. Our success rate is high – over 80%  – when Fixturelite becomes involved in the sales process.

More than ever, the Fixturelite team is being contacted directly by space planners, health and wellness committees, HR directors and relocation coordinators – wanting to focus on the design, the traffic flow, the seating, the look and the function of their breakroom space. They want to be sure that the area where the micro market is going will be part of a wonderfully collaborative workplace, long before they are wanting to discuss what type of sandwiches will be sold in the micro market.

Let’s make it happen

The operators who are investing in design and talking about the importance of design with the client in the very first meeting – these are the operators who will command minimums and subsidy programs. Fixturelite is seeing it happen every day, and we are happy to help make it happen for your company.

Visit www.fixturelite.com to learn more.

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