New Ideas
Nash, a 15-year veteran of a national truck-leasing company, decided he wanted to develop several new ideas for the storage industry to enhance a facilitys bottom line. In August, he founded KWNG in San Antonio to offer value-added truck leasing and insurance services to storage companies throughout the United States.
What we are doing with KWNG is different [from other truck leasing companies], Nash says, explaining the company offers a three-, four- and five-year terminal rental-adjustment clause (TRAC). This gives operators more flexibility than the four-year option predominantly offered by other companies.
KWNGs average truck lease fee is approximately $700 a month with another $200 a month for insurance, Nash says. The company provides either a 14-foot or 15-foot Ford truck. A guarantee clause allows the customer to exit the lease with a one-time fee of $3,000, which covers removing graphics from the vehicle and prepping it for the next client. I certainly dont want a customer to be obligated with a truck that isnt working for him, Nash says.
Storage owners can advertise their facilities on the sides of the truck and turn them into a mobile billboard. KWNG will recommend a company to apply graphics or customers can use their own graphics designer. Every truck is furnished with a kit that consists of a truck-condition and rental form, claim information, height figures and roadside-assistance information.
The truck is an ancillary service that gives a facility the edge over its competition. An operator can comp the truck to customers moving in, says Nash, who maintains the approach is more cost effective than giving away a free unit. The fees charged on renting trucks to exiting customers usually offset the monthly costs of the truck lease and insurance, he adds.
Insurance
KWNGs insurance program consists of $5 million liability, comprehensive and collision. Truck-rental insurance is often difficult to obtain, Nash says. Owners dont have to lease our trucks to get the insurance, nor obtain our insurance to lease our trucks. If a customer has his own trucks, he is charged a one-time membership fee of $1,500 per vehicle to obtain KWNGs insurance.
Nash wants to provide insurance to the storage industryand give his customers a plan to profit from it. He offers a risk group-purchasing plan designed to reward clients when claims are reduced. If insurance claims against the group go down, premiums will decrease and everyone gains. Joining the group isnt compulsory, but operators stand to benefit, says Nash.
Offering rental and insurance is a necessity for the storage industry, according to Nash. Trucks are like locks and boxes; they go hand in hand with storage. If a facility isnt offering a truck, the competition probably is.
Software for Superior Service
Nash has implemented a software system to assist with his goals of providing a superior service. The program tracks the truck throughout its life, regardless of how many people own it. This allows the company to generate depreciation and financial audit reports on every truck it handles. All internal work can be done up to about $60 million a year with the same number of employees, Nash says.
KNWC is run by an executive staff: Nash; Mathew Davis, vice president; Toni Byers, director of sales and finance; and Christie Perkins, marketing director.
The KWNG philosophy is to offer customers superior products to enhance their bottom line. The insurance group gives clients options for reducing the costs of providing an ancillary service. But what we do is secondary to how we do it, Nash says. Its not about growing the company to increase our wealth; its about offering a service to benefit everyone.
For more information, call 877.818.7825; visit www.kwnashgroup.com.
