Early suite renewals and extending one-year suite contracts to multi-year term deals are a hot topic at present. Please respond if you have offered the following for renewals or contract extensions and if you have offered something else, please list.
- Playoff Tickets (first round or beyond). If offered and the team does not make playoffs, what is your make-good?
- F&B Credits
- Price Roll Back (to current or previous year)
- Complimentary SROs for team or third party events
- Experiential Rewards/Trips/Offerings, please list
- If yes to any other above, what were the results? Comments?
- Playoff Tickets (first round or beyond). If offered and the team does not make playoffs, what is your make-good? We did offer 1st round at no charge, but that is likely to change. No make good offered if no playoffs.
- F&B Credits -- have not done so but are looking to add this either as a credit or having light snacks and sodas for all events.
- Price Roll Back (to current or previous year) -- no price roll back (we wanted to do so -- but management shot it down)
- Complimentary SROs for team or third party events we are looking to add 4 comp sro
- Experiential Rewards/Trips/Offerings, please list -- nothing formalized here
- If yes to any other above, what were the results? Comments? We are in the process of a large renewal of our lower level suites.
- Playoff Tickets (first round or beyond). If offered and the team does not make playoffs, what is your make-good? Depending on the deal we have been giving the first round only as a benefit to hockey only suiteholders that purchase a full season. Numbers have to make sense though. Its only if we make the playoffs and fully communicated prior to the signing.
- F&B Credits â€“ we give credits for food and drink which is actually a cost for us annually. 6% if they pay in full April 1, 5% May 1, 4% June 1, 3% July 1 and 2% August 1. Most of the agreements we have commence on Sept 1.
- Price Roll Back (to current or previous year) â€“ we negotiate this in our sales process. Typically include escalator but market or sale sometimes doesn't allow it.
- Complimentary SROs for team or third party events â€“ we give comp sro in suite for games and select shows as a perk.
- Experiential Rewards/Trips/Offerings, please list â€“ really push the networking events as clients want the opportunity to network and grow business with the relationships we have. Big key for us to do this and connect people. We have a few key big renewals that we offer trips with team.
We offer discounts for multi-year agreements â€“ usually 10% on the second and subsequent years. We also offer discounts for full upfront payment of multi-year agreements a figure usually determined by our finance department based on the cost of money at the time.
We have had success with 3 of the below options:
- Playoff tickets- Each suite has the option to purchase 6 tickets for their suite in addition to their normal allotment of suite tickets. For the post season, we purchase those 6 additional tickets if they renew early.
- F&B credit
- Away trip (airfare, hotel accommodations, tickets and pre game event)
This year was our first year for renewals, and we included four drink rail season tickets with a value of $16,200 for the first year of the contract. It was included with all renewals. It wasnâ€™t an option as much as it was a value-added proposition.
In addition, we included the new 3M branding option for two suite holders who upgraded into a more expensive suite.
Great question, we are just going though our playoff planning and I have suggested the following. Ideally these incentives would be offered to people who reserve a suite before the playoffs go on sale and for Round 1 only, which are usually harder for us to sell.
OPTION 1: WHISTLER GOLF PACKAGE
- Whistler Hotel Accommodations
- Golf at Nicklaus North
- TaylorMade Driver
OPTION 2: CANUCKS EXPERIENCE
- Alumni in suite visit
- Autographed jersey draw
- On ice photo after the game
OPTION 3: DOUBLE FOOD & BEVERAGE CREDIT
- Receive double the food and beverage credit (up to $2000)
We have had pretty good success as of late with expiring contracts by starting the renewal process with one year left on their agreement by having the conversation while they are processing that final year's payment and offering a "rollback" on their existing pricing.
For example: A suite that will expire after the 2014 season- their payments for the final year of their contract are Due 50% November 1, 2013 and 50% February 1, 2014. We wait until they make their first payment (let's use for example a $200,000 suite, so they will have paid $100,000 on November 1). In mid-November, we start discussing their renewal and as a carrot offer to rollback their 2014 pricing to $175,000. At that point, we are talking about real money that they already owe us. It can be extremely attractive for a company to "free-up" $25,000 out of their budget that they weren't planning on having. Many times, the short term benefit of "found money" will outweigh any concerns that they have about extending the deal. It is much easier to alleviate pressure today and put off the reality of additional expenditures for a later date.
It becomes less about truth be told, we roll that $25,000 back into the extension years, but it is overshadowed by the lump-sum "savings" now because it is spread out over 3-5 seasons.
The last few years we have worked with our catering partner and offered a food & beverage credit for early renewal. The renewal credit has typically been $2500, which must be used in the first year of the new contract. In the past we have also offered $5000, to be used over two years and $7500 over three years. We did the $7500, back 3-4 years ago when the economy was little worse than it is now.
For our Founders Club members (clients in contracts with 60 or more loge seats or two suites), we offer things like front-of-the-line access to sold-out concerts in our neighbor stadium, access to special extra seating at no charge (limited to 4 seats per day, first-come first-served) and signage on a Founders wall in our venues. They also receive a price discount whereby they pay two year-old prices -- for example they pay the 2012 price in 2014, the 2013 price in 2015.