FAQ
What the heck is capex?
Capital expenditure. In this case, the term capex refers to the money Pinnacle Live is investing in its venue inventories. Capex is allotted to venues based on their gross annual AV revenue and is initially spent by the Procurement department who builds the primary inventory order, and later by the Venue Director who is responsible for ensuring the long-term health and effectiveness of their venue’s rental inventory.
What is Pinnacle Live’s capex request process?
Requests to spend capex allocation for rental inventory are created in StoreFront via the process outlined in the Capex Request Orders SOP . This produces an inte rnal order that is approved by Procurement and/or Specialty Services. Once approved, the order moves to Facility Operations for fulfillment. In-stock items are shipped ASAP and the remainder of the order is shipped as soon as the product becomes available.
What kinds of items should I be purchasing with capex?
Capex requests should support the maintenance and growth of your rental inventory, focusing on reducing subrentals, increasing sales, and meeting customer expectations. Supplies and high turn-over items such as power strips, 25’ and 50’ extension cords, and video adapters are considered operational expenses and should be purchased via PO directly from a vendor. Please refer to the Supply & Resale SOP for more inform ation.
What if the item I am looking for is not represented in the catalog?
If you would like to request an item that is not currently approved for purchase, you may do so via the New Gear Request Form . This will prompt the Procurement department to investigate the circumstances of your request so they can determine the best solution. The item may end up being added to the catalog, ordered for your venue only without inclusion in the catalog, or an alternative item may be recommended.
How much capex can I spend?
The current available capex allocation available to each venue is documented in the Capex Allocation Master spreadsheet maintained by Procurement. Access to this data is restricted to Asset Management and Venue Operations leadership and communicated to the Venue Director on an as-needed basis. We are working to add functionality in TapGoods that will allow Venue Directors to see real-time updates to their capex allocation in the future.
What if I need to spend more capex than has been allocated?
In most cases, you are expected to wait until the next annual capex allocation to place your order. If you consider your equipment need to be an emergency, please reach out to Procurement so that the situation can be discussed, and a solution identified. Please come prepared with financial justification for your request. In some cases, additional capex allocation may be approved depending on the circumstances.
When will I receive additional capex allocation?
After the initial capex amount allocated to new venues when they open, additional capex funds are allocated once per calendar year starting after the year of the venue’s opening. This allocation will typically be added to the venue’s credit limit on the StoreFront in the first quarter after budgets have been finalized and approved.
What is the impact of a capex request to my venue’s P&L?
Most items obtained through the capex request process will be high-value barcoded assets that will be amortized over the course of 60 months. For example, an item that costs $6000 will produce $100 worth of depreciation costs on the venue’s monthly P&L. Standard cables, inexpensive accessories, and other piece count items are generally deducted from the venue the month they were purchased.
How long will it take to receive my items?
Any items currently in stock will be shipped ASAP. That said, with the capex request process opening to all venues simultaneously, there is likely to be a large backlog of orders initially that will be fulfilled in the order they are received. Any items that are not in stock will be shipped as soon as they are available. Delivery timelines from our vendors are still quite long and constantly changing, so some items could take months to receive.
What if I need to make changes to my order after it’s approved?
If you need to add, remove, or change the quantity of items on an existing order, please forward your order confirmation email to assetmanagement@pinnaclelive.com with details of the requested changes.
In some cases, your order may be assembled and require the warehouse team to dismantle and reassemble your shipment which can cause delays. If you request to cancel items that have already shipped, you will need to receive them as ordered and will not receive a credit to your Capex. It is easier to add items or place an additional Capex order than it is to remove items during the fulfillment process. To minimize any complications, please carefully consider your needs when placing an order.
In what condition will my items arrive?
Items purchased with a case will typically be shipped in their case. If the item does not have a case or the case is not in stock, it will be shipped in the manufacturer packaging and the case will be shipped separately. Cables will be shipped fully processed per the Cable Ties SOP . As a remind er, any standard power strips or extension cords purchased outside the capex process will also need to meet this standard.
When can I make capex requests?
Pinnacle Live’s capex request catalog remains open February-November so that orders can be placed at any time. That said, capex allocation is only provided once per year, during the 1st quarter. It is in the Venue Director’s best interest not to spend their entire annual capex allocation as soon as it is made available, as this may result in the inability to place orders later in the year.
What is Pinnacle Live’s policy on capex allocation?
Each new venue operation is initially allocated a lump sum of capex for the purchase of its rental inventory. 80% of this amount is spent by the Procurement department before the hotel opening. The remaining 20% is spent by the Venue Director in the first year of business. Venues are allocated a percentage of their annual budget thereafter to refresh their inventories.
Will my available inventory in IE Lightning automatically update?
No. IE Lightning does not currently receive any automated updates to inventory counts from NetSuite where asset management information is stored. Therefore, updates to available inventory quantities in IE Lightning must be performed manually by the Venue director to ensure shorts are being accurately calculated in the system. For information on how to do this, please see the Updating Venue Inventory Counts module on CSOD.
What is included in the capex cost of an item?
The price for each item in the product catalog is determined by taking the purchase price that the procurement department pays the vendor and adding a 6% delivery surcharge, creating a "landed cost". The 6% delivery surcharge covers the cost of freight from the manufacturer to Endeavor Base, and from Endeavor Base to the venue. This percentage was derived from the average of all shipping costs and is applied to all items regardless of size or weight.
Do I need to do anything when items arrive at my venue?
Yes. You will need to confirm receipt of all items on your venue's receiving spreadsheet located on Teams within 48-hours of delivery. Venue leaders must request an extension if they cannot receive their shipment within that timeframe by reaching out to inventory@pinnaclelive.com.
A link to your receiving spreadsheet will be provided in the shipment notification email along with each shipment’s tracking information. Please follow the receiving instructions for the Piece Count Items and Barcoded Assets located at the top of each section. Venue leaders can reference the Receiving New Inventory SOP for further details.