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Field notes · January 18, 2021

Why We Moved Out of Battle Creek (and What It Taught Us)

We outgrew our second yard in 2015. The move taught us something useful about location, freight, and the geometry of consolidation.

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Mike Tarsis
6 min read · January 18, 2021

Our first yard was a quarter-acre rented lot in Battle Creek, Michigan, that we leased in 2009. By 2014 we were stacking totes on the access road and turning customers away. The move to Grand Rapids in 2015 worked out, but it wasn't obvious at the time why it would.

Why Battle Creek made sense in 2009

We started in Battle Creek because rent was cheap, we knew the area, and a co-op willing to lease us a quarter acre was a short drive from where we lived. We had no operational reason for being there — it was a startup-stage decision driven by cost and familiarity.

Why Battle Creek stopped working by 2014

Two reasons. First, we outgrew the lot. We had stack rows where we needed flow lanes. We couldn't add a second wash bay because there was nowhere to put it.

Second — and we didn't fully realize this until later — Battle Creek was off the main consolidation corridor for outbound. Most of our outbound freight had to route through Lansing or Kalamazoo anyway, which added 25–40 miles of empty drive per outbound run. Over the course of a year that added up to roughly $34,000 in needless fuel.

Why Grand Rapids made sense

When we looked at Grand Rapids in 2015, the math was straightforward. Grand Rapids sits on US-131 and I-196, both of which connect to most of our outbound corridors with less drag than Battle Creek. The four-acre property at 902 Scribner gave us room to grow into a second wash bay, a fabrication corner, and an outbound staging area.

It was also more expensive — roughly $4,800/month vs $1,200/month in Battle Creek. The cost math says we'd pay back the difference in two years from freight efficiency alone. Reality was closer to 18 months because we picked up more outbound volume than projected once the new wash bay opened.

What we learned about location

The right yard location for a tote reconditioner is not "where rent is cheapest." It's "where the inbound and outbound freight corridors converge with the least drag." Drag is silent — you don't see it on your invoices — but it accumulates fast.

If we ever open a second yard (and we've started thinking about it for Ohio), the location decision will be made on consolidation geometry first, cost second.

The move itself

We did it in 60 days. Phase one was lining up the new lease and getting permits for the new wash bays. Phase two was the relocation — three weekend pushes with the whole team. Phase three was rebuilding the customer relationships that had been formed around Battle Creek's hours and gate access.

The relocation period cost us about 11% of monthly revenue for the quarter. We made it back within four months.

Picking the right yard is a freight problem, not a rent problem. We learned this the slow way.