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Building a Profitable Remarketing Program

Overview

The Story

With over 40 years providing quality, comprehensive construction services, KBS has built their success with a foundation in long-term partnerships. “Our motto is we don’t just build buildings, we build relationships,” said Trey Cantrell, Leasing Coordinator at KBS. “That’s why 85 percent of our current work is repeat business. We manage our projects with our customer’s needs in mind.”

So in 2014 when KBS’ relationship with their former leasing company became disorganized and unresponsive, they turned to Orange Grove. “Our fleet was growing and I wanted to feel the same level of service from our leasing partner that we strive to provide to our customers,” said Trey. “I tasked Orange Grove to help us devise a fleet strategy and create a profitable remarketing channel.”

With a mix of work trucks and executive cars, the KBS team depends on their vehicles to do their jobs and needed a fleet management partner they could count on. “Orange Grove has been a one-stop shop for us,” said Trey. “From maintenance to trading in vehicles, they’ve been able to handle it all which has made my life easier.”

Building a Plan that Drives Results

A successful fleet strategy for KBS required a thorough discovery phase – gathering data about financial needs and vehicle requirements. This included evaluating the current fleet and placing a wholesale and retail value that could unveil equity opportunities.

“Our fleet needs change regularly,” said Trey. “With our previous company, the lead time for trading in vehicles was about a month and a half. With Orange Grove, we can get the vehicles we need in a week and that timeliness makes a big difference.

With information gathered, Orange Grove and their financial team huddled and constructed a comprehensive fleet management plan. Together, KBS and Orange Grove reviewed recommendations for new and preowned vehicles, the value of the current fleet, a tailored outsourced fleet management solution, and a remarketing strategy for when the lease ends.

“We depend on the expertise of Orange Grove,” said Trey. “They’ve always been knowledgeable and fair about market value. And the remarketing efforts that we’ve implemented have put more money back in our pockets.”

Expertise on a Local Level

To help partners like KBS accomplish their fleet and business goals, Orange Grove builds a foundation of trust through full transparency and a commitment to developing a responsive and personal relationship.

“The bottom line for us is price but there are so many intangibles that Orange Grove provides that would make it hard to leave,” explains Trey. “I love working with a company that’s local and can help quickly. And when issues arise, they are handled.”

With a customer centric relationship, Orange Grove gets to know what matters to their clients. “We do open-ended leases which can make it a bit more challenging to gauge things like mileage,” said Trey. “Orange Grove makes the back end of the lease process extremely simple. When the time comes to trade in vehicles, I can do that by just dropping them off. That level of convenience is makes all the difference for me.”

The Results

The relationship between Orange Grove and KBS has been positive in more ways than one. As a result of implementing a unique remarketing program, KBS has earned more than $4,000 per vehicle through Orange Grove’s parent company CarLotz.

“I would, without question, recommend Orange Grove to businesses looking for a fleet leasing and management company,” said Trey. “They’ll fix things for you, it’s not crazy expensive and at the end of the day, I feel like they’re looking out for me.”