Reveel Resources

Turning a Remote Location into a Powerful Negotiating Strength

Turning a Remote Location into a Powerful Negotiating Strength

Challenge

A well-known aftermarket auto parts manufacturer, KC HiLiTES is located in Williams, AZ, about 35 miles west of Flagstaff. A decidedly rural town, Williams presents transportation disadvantages due to the lack of a major market within a few hours’ drive. Because of this, KC HiLiTES had always believed they were overpaying for shipping costs. Despite this fact, the company’s owner had established a strong relationship with both FedEx and UPS over the course of a more than 40-year business relationship.

Solution

What KC HiLiTES saw as a disadvantage—their remote location with few other businesses nearby—Reveel saw as a negotiating strength. Both FedEx and UPS had existing routes in the area, with packages that regularly needed to be delivered. What they didn’t always have in such far-flung locales were pickups, which translated into empty trucks driving long return routes. As the largest shipping account for miles, with a steady stream of daily business, KC HiLiTES made these routes worthwhile for their carrier, providing a reliable source of daily pickups. By leveraging the very thing they thought they had going against them, Reveel helped the company renegotiate their carrier contract.

They really are experts in their craft and were able to translate the carriers’ pricing into a language that we could understand. Everything they promised they delivered on

Michael DeHaas
Chief Executive Officer
KC HiLiTES

Results

By partnering with Reveel, KC HiLiTES negotiated a 18% savings on their annual shipping costs. In addition to our Contract Analysis & Negotiation services, the company has gone on to use our Reporting & Analytics services, significantly increasing visibility into their operations and spend.

About KC HiLiTES

Since 1970, KC HiLiTES has been designing and manufacturing auxiliary performance lighting for off-road vehicles. Specializing in Jeep, Truck, SUV, and Off-Road lighting, KC HiLiTES products are always designed with innovation, performance, quality and customer service in mind. They offer the most balanced lighting portfolio, giving customers flexibility and choice across size and technologies.