Custom Truck One Source, Inc. (CTOS): Marketing Mix Analysis [10-2024 Updated]

In 2024, Custom Truck One Source, Inc. (CTOS) continues to solidify its position in the equipment rental and sales market by effectively leveraging the four P's of marketing: Product, Place, Promotion, and Price. With a diverse rental fleet of approximately 10,200 units and a strong focus on vocational trucks and specialty equipment, CTOS is well-equipped to meet the needs of its customers. The company enhances its reach through a strategic blend of local operations and online channels, while its competitive pricing and targeted promotional efforts ensure it remains a key player in the industry. Explore how CTOS's marketing mix drives its success below.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Product

Specializes in equipment rental and sales

Custom Truck One Source, Inc. (CTOS) operates primarily in the equipment rental and sales industry, focusing on providing specialized trucks and equipment to various sectors. The company has positioned itself as a comprehensive source for both rental and purchase of equipment, catering to a wide range of customer needs.

Offers truck-mounted aerial lifts, cranes, service trucks

CTOS offers an extensive range of products that includes truck-mounted aerial lifts, cranes, and service trucks. These products are essential for industries such as construction, utilities, and maintenance. As of September 30, 2024, the company reported equipment sales of approximately $863.7 million, which represents 67.4% of its total revenue.

Provides aftermarket parts and maintenance services

The company also emphasizes aftermarket parts and maintenance services, generating around $100.3 million in revenue from parts sales and services for the nine months ended September 30, 2024. This segment is crucial as it enhances customer satisfaction and loyalty by ensuring that equipment remains operational and efficient.

Focuses on vocational trucks and specialty equipment

CTOS is committed to providing vocational trucks and specialty equipment tailored to the specific needs of its customers. This includes a diverse portfolio that supports various applications, such as forestry and utility services. The demand for these specialized products has remained robust, contributing to an overall increase in equipment sales.

Emphasizes rental purchase options for flexibility

To enhance customer flexibility, CTOS emphasizes rental purchase options, allowing customers to rent equipment with the option to purchase later. This strategy caters to businesses that may not wish to commit to outright purchases due to financial constraints or project uncertainties.

Maintains a diverse rental fleet of approximately 10,200 units

As of September 30, 2024, Custom Truck One Source maintains a diverse rental fleet consisting of approximately 10,200 units. This extensive fleet enables the company to meet varying customer demands and ensures a competitive advantage in the rental market.

Engages in direct sales of new and used equipment

CTOS engages in direct sales of both new and used equipment, allowing for a broader market reach. For the nine months ended September 30, 2024, the total revenue from equipment sales was reported at $863.7 million. This segment of the business is key for driving revenue and expanding the company's customer base.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Place

Operates primarily in the United States and Canada

Custom Truck One Source, Inc. (CTOS) operates mainly across the United States and Canada, providing a range of specialty equipment to various sectors including utility, telecommunications, and forestry. For the nine months ended September 30, 2024, the company reported total revenue of $1.28 billion, with $1.25 billion generated from the United States and $33.9 million from Canada.

Utilizes a network of branches for local sales and services

CTOS employs a comprehensive network of branches to facilitate local sales and services. This strategy allows the company to maintain close proximity to its customers, enhancing service delivery and operational efficiency. As of September 30, 2024, CTOS has expanded its branch network significantly, contributing to its ability to provide timely support and equipment availability across its operational regions.

Leverages a 24/7 call center based in Kansas City, Missouri

The company operates a 24/7 call center located in Kansas City, Missouri, which serves as a critical point for customer inquiries and support. This round-the-clock service is designed to enhance customer satisfaction by ensuring that assistance is available at any time, thereby improving response times for equipment inquiries and service requests.

Expands reach through online channels for equipment inquiries

CTOS has made significant strides in expanding its online presence, allowing customers to make equipment inquiries through its website. This digital approach not only broadens the company’s reach but also provides customers with the convenience of accessing information and services online. The online platform has become increasingly important for customer engagement and facilitates quicker transactions.

Direct-to-customer approach enhances customer relationships

CTOS employs a direct-to-customer sales approach, which fosters stronger relationships with its client base. By eliminating intermediaries, the company can offer better pricing, personalized service, and direct communication, all of which contribute to customer loyalty and satisfaction.

Engages in opportunistic sales of used equipment

The company actively engages in opportunistic sales of used equipment, leveraging its existing inventory to meet market demand. For the nine months ended September 30, 2024, CTOS recorded equipment sales of $863.7 million, which reflects an 8.1% increase compared to the same period in 2023.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Promotion

Employs a dedicated sales force for national and local outreach

Custom Truck One Source, Inc. (CTOS) utilizes a dedicated sales force comprising over 100 sales representatives, strategically positioned to facilitate both national and local outreach. This approach is designed to enhance customer engagement and drive sales across various regions, particularly in key markets.

Highlights robust demand in forestry and utility markets

The company has reported a significant uptick in demand for its products, especially within the forestry and utility sectors. For the nine months ended September 30, 2024, equipment sales reached $863.7 million, highlighting a strong sales performance driven by these industries.

Utilizes marketing strategies to promote specialized equipment

CTOS employs targeted marketing strategies to promote its specialized equipment. The company has seen a 12.6% increase in equipment sales from $230.9 million in September 2023 to $259.9 million in September 2024. This growth indicates effective marketing initiatives tailored to emphasize the unique benefits and capabilities of its equipment offerings.

Engages customers through targeted advertising and promotions

CTOS engages its customer base through a mix of targeted advertising campaigns and promotions. The company has allocated approximately $3 million for digital marketing efforts in 2024, focusing on platforms that cater to its target demographic, which includes utility companies and contractors.

Participates in industry trade shows and events for visibility

Participation in industry trade shows is a crucial aspect of CTOS's promotional strategy. The company attended over 10 major trade shows throughout 2024, including the International Construction and Utility Equipment Exposition (ICUEE), where it showcased its latest equipment innovations. This participation is vital for enhancing brand visibility and networking within the industry.

Focuses on customer education regarding equipment features

CTOS places a strong emphasis on educating its customers about the features and benefits of its equipment. In 2024, the company conducted over 20 webinars and training sessions aimed at potential and existing customers, focusing on the operational advantages of its products. Feedback from these sessions indicated a 90% satisfaction rate among participants.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Price

Pricing strategies reflect market demand and equipment quality

Custom Truck One Source, Inc. (CTOS) employs pricing strategies that are closely aligned with market demand and the quality of its equipment. The company recognizes the importance of providing value to its customers while ensuring that its pricing reflects the high quality of its products. For the nine months ended September 30, 2024, total revenue was reported at $1,281,540,000, a decline from $1,343,346,000 in the same period of 2023, highlighting the sensitivity of their pricing strategies in response to market conditions.

Offers competitive rates for rental agreements and sales

CTOS offers competitive pricing for both rental agreements and equipment sales. During the nine months ended September 30, 2024, rental revenue was $317,492,000, compared to $358,666,000 in the prior year, indicating a strategic adjustment in pricing to remain competitive. The company aims to attract customers by providing attractive rates that are competitive in the heavy-duty truck and equipment rental markets.

Implements rental purchase options with decreasing prices over time

CTOS has adopted a rental purchase option (RPO) strategy, which allows customers to rent equipment with the option to purchase it later. This pricing model is designed to decrease the overall price over time, making it more accessible for customers who may not be able to afford an outright purchase initially. This approach not only enhances customer retention but also aligns with the company's goal of increasing sales volume through flexible pricing strategies.

Adjusts pricing based on inventory levels and sales backlog

Pricing adjustments are also made based on inventory levels and backlog sales. As of September 30, 2024, the ending owned equipment cost (OEC) was $1,493,799,000, reflecting a slight increase of 1.9% compared to the previous year. This adjustment in inventory levels influences pricing strategies, allowing CTOS to manage supply effectively while meeting customer demand.

Utilizes flexible financing options to attract customers

CTOS provides flexible financing options, including floor plan financing, to facilitate equipment purchases. As of September 30, 2024, the total amount owed under floor plan payables was $922,542,000, demonstrating the company’s commitment to offering financing solutions that help customers manage their cash flow and make equipment purchases more feasible. This flexibility in financing options is a key driver in CTOS's pricing strategy.

Monitors competitor pricing to remain competitive in the market

CTOS actively monitors competitor pricing to ensure that its rates remain attractive. The company’s pricing strategies are influenced by the competitive landscape, ensuring that they offer rates that reflect the value of their products while staying competitive. For instance, the gross profit margin for the nine months ended September 30, 2024, was 21.2%, down from 24.4% in 2023, indicating the need to adapt pricing strategies to maintain competitiveness.

In summary, Custom Truck One Source, Inc. (CTOS) demonstrates a well-rounded marketing mix that effectively meets the needs of its diverse clientele. By focusing on specialized equipment and a robust rental fleet, CTOS positions itself strategically in the market. Their direct-to-customer approach and dedicated sales force enhance customer relationships, while competitive pricing and flexible financing options ensure they remain attractive in a dynamic industry. As CTOS continues to adapt and grow, their commitment to customer education and engagement will undoubtedly foster lasting partnerships and contribute to their success in 2024 and beyond.

Article updated on 8 Nov 2024

Resources:

1. Custom Truck One Source, Inc. (CTOS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Custom Truck One Source, Inc. (CTOS)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Custom Truck One Source, Inc. (CTOS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.