RE: Research and previous red flags7 Jul 2017 14:42
Many good points Orange, well written and agree for the most part.
Selling pallets is not a strategy - providing customers with a unique value prop is however. The rental model provides guaranteed ongoing revenues, why does Chep never sell pallets? Why sell a $25 asset when you can rent it out for more than 3 times the value over it's lifespan.
However if you want to compete with Orbis, Rehrig, etc., you need to keep in mind that they also have an ongoing revenue model. They build their pallets to last a year or so at $50/unit, need to be replaced at full price.
Chep have hardly noticed this company and don't take them seriously at all.