Industry Ignited Podcast

Why Cheap Refrigeration Costs More in the Long Run | Ep. 76 [Marcos Pordeus de Paula]

โ€ข Leeanne Aguilar, Ph.D.

Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.

0:00 | 43:31

In this episode of Industry Ignited, Dr. Leeanne Aguilar sits down with Marcos Pordeus de Paula, CEO of Frigo King and Power Mobile, to explore what truly drives competitive advantage in transport refrigeration. While many companies compete on price, Marcos shares why Frigo King chose a different path, focusing on uptime, durability, service, and real-time data to deliver long-term value for customers.

From its beginnings as a small family-run operation to expanding across 28 countries, Frigo Kingโ€™s journey is built on a clear philosophy: cheap solutions often cost more in the long run. Marcos explains how prioritizing customer success, investing in technology, and delivering strong pre- and post-sales support helped the company outperform low-cost competitors in global markets.

The conversation dives into how smarter refrigeration systems equipped with data logging, cloud connectivity, and open integrations are transforming the cold chain. Marcos also shares insights on designing products that last longer, reducing downtime for fleets, and why understanding the customerโ€™s real needs is more important than simply selling equipment.

๐ˆ๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ฒ ๐ˆ๐ ๐ง๐ข๐ญ๐ž๐ https://industryignited.com/
๐ˆ๐ง๐ฌ๐ญ๐š๐ ๐ซ๐š๐ฆ https://www.instagram.com/industryignited/
๐…๐š๐œ๐ž๐›๐จ๐จ๐ค https://www.facebook.com/industryignited/
๐‹๐ข๐ง๐ค๐ž๐๐ˆ๐ง https://www.linkedin.com/company/industry-ignited
๐’๐ฉ๐จ๐ญ๐ข๐Ÿ๐ฒ https://open.spotify.com/show/3TX1L5LPr4lt1UtcSpSvlN?si=7037433a58c54162
๐€๐ฉ๐ฉ๐ฅ๐ž ๐๐จ๐๐œ๐š๐ฌ๐ญ https://podcasts.apple.com/us/podcast/industry-ignited-podcast/id1824619671

๐Œ๐š๐ซ๐œ๐จ๐ฌ ๐๐จ๐ซ๐๐ž๐ฎ๐ฌ ๐๐ž ๐๐š๐ฎ๐ฅ๐š
https://www.linkedin.com/in/marcospordeusdepaula/
https://www.linkedin.com/company/frigo-king/

#podcast #podcastinterview #podcasts #podcastclips #podcastlife #industryignited #drleeanneaguilar #marcospodeusdepaula #innovation #electronics

Dr. Leeanne Aguilar

What if the real competitive advantage in transport refrigeration isn't a lower price, but uptime, durability, and knowing what's happening inside the box in real time? Welcome to Industry Ignited, the podcast where we sit down with leaders transforming industrial markets through innovation and execution. I'm your host, Dr. Leanne Aguilar. And today I'm joined by Marcos de Paula, CEO of Frigo King and PowerMobile in Brazil, company specializing in transport refrigeration and energy solutions for refrigerated containers. Marcos, welcome to the show.

SPEAKER_01

Thank Colleen. It's a pleasure being with you and your audience.

Dr. Leeanne Aguilar

Now Frigo King began as a family business and you entered the company during a pivotal moment. What was the turning point that moved you from supporting the business to truly leading it?

SPEAKER_01

Well, I think that was kind of natural because it was not some planet, but natural because some personal issues. My father-in-law, who started a company, unfortunately, he suffered an accident. And for that reason, not for a good planning moment to get this passage from him to us. My wife first went to the company to take care. And on that moment, uh we are having a baby, so she needs support. And then I went to the company and I like it. And the rest is this history, this beautiful history that you are building together, me and her.

Dr. Leeanne Aguilar

Wow. So it wasn't a planned circumstances, is what I'm understanding. You kind of wound up there circumstantially because of your father-in-law's accident. And was it an industry that you'd had experience with before that? Or it's something you just um stepped into brand new?

SPEAKER_01

No, he had experience on the history in industry. He was a partner in a company that used to make the refrigerated boxes. He brings some technology for the boxes and for the equipment from his troops to Germany. My wife's family is ancestral on Germany, so it was very linked to that technology and culture. So he brings it and he had an idea, or he understood that the equipment may be business itself. It doesn't need to be together with the boxes. And he on 2003 he understood that that's the pet he organized in 2003. And in 2005, we started the Frigo King Company. Uh, or he started the Frigo King Company, but uh very soon was my wife who was in front of the business.

Dr. Leeanne Aguilar

Okay, so it's shortly thereafter. Now you described the early days as almost a garage company. What were the first capabilities you built that made global growth possible? Was it people, product, processes, or mindset?

SPEAKER_01

I think that competition and the mindset. When you start as that garage company, very small few employees, I think uh six, seven employees, not more than that. I understood that we'll be uh very easily beat it by Chinese companies that will start business. They were trying to start a business in Brazil with uh very low prices. On that very moment, I understand that we need to choose a path, and we choose the path of service and quality, because that is where Chinese companies cannot compete. They have uh lower prices, but they do not offer usually quality, and when they can also bring quality, they do not provide service because this is a kind of cultural. They sell the product for lower prices, but they do not think about the customer. And we understand that going to on this way through this path, we were able to build something more reliable, and I also understood on early 2006 that we need to go to other countries to compete against the Chinese before they start really having business here in Brazil. And we went, we chose our countries closer to us, like Argentina, Uruguay, Paraguay, Chile, went there to compete against the Chinese, the Koreans, and I think that you did a pretty good job doing that. And we faced it for we faced some console some brands that were strong on that market, and we could manage to sell an equipment that is a little bit more expensive, but in the end of the day, the difference in terms of support that you can give, and support not aftermarket uh the service, support sells the company, training support is uh how do we understand the customer needs to provide the best solution and uh equipment it work works or runs through 10 years. If you choose the wrong equipment, it will become a cost, a very high cost for all those 10 years. Good brands, not the best ones, the good brands, they are basically twice, three times more maintenance than a free working. It's not because of the equipment, it's because of that support that you are able to give in the pre-sales and after sales.

Dr. Leeanne Aguilar

Yeah. So I'm hearing that early on you really identified that it wasn't going to be a winning game to compete on price. So price isn't something that you even considered competing on because you know, China and and you know, the other countries had you beat, but where you could really stand out was on that service and providing better product that lasted longer. So it's really durability and performance instead of price. And um yeah, so that gave you a leading edge there. So you you then slowly moved into other South American countries first?

SPEAKER_01

Uh it was easier going through our neighbors. Uh that's why you we choose them. But very fast uh people start talking one to another into exhibition. In 2012, I think we were in some Central American countries and got 15 countries with equipment running. 15 were able to manage 20 countries and now 28 countries, which is pretty interesting, considering that it's basically all can all the countries, maybe not Guyana's and uh who's small country in Latin America, but other countries basically we are attending with the three-working equipment.

Dr. Leeanne Aguilar

Yeah. Now leading in manufacturing often requires balancing speed, precision, and long-term thinking. What personal leadership principles have guided you through 19 years of building and scaling?

SPEAKER_01

Um, quality, of course, this is the first point in terms of product technology. We had a very important discussion in 2014 about uh how uh wanna be recognized and the technology that you put in the product that it was decided that you will be in that way. So since 2016, all all of our equipment uh leaves the factory with a data logger that is uh standard, there is no extra cost, and this is something that basically everybody charges. And since 2020, you have one of the most advanced systems uh for technology technology with a free app that can communicate with the cabin control, send information to the clown, getting global position, so very advanced, and it's everything for free. We have open source to communicate with some companies that does the tracking for the truck, so um it's not uh a closed system, it's open for them, and of course, also for our the people from our team. I understand that uh we need to improve the product, but we also need to improve who is in front of the customer, developing the idea of um um how they must serve our customer, how they must offer the best solution. And this is something that is always happening in the company with the leaders, through the leaders, to the other people, to the guys from production line, from service, from sales. So in every department, it's very clear that our number one priority is the customer. I have a saying that it's very usual in terms of uh what we need to priorize, and first, it's always the product with on the field with the customer. So if the customer uh has any needs, this is first one priority, second, it's what is strategical in the plan, and third is the operational. This is something for everybody in in our works. We have many different tasks during the day, many different. Uh, if it's you start in the morning and until the end of the day, you they will completely full of tasks. But if you take a look, know few of them, it's really important. So when you when it's very clear to priorize, we know that the first priority is the customer, and if the customer is the first priority, everything makes it easier to decide and understand. I it's working, it's it's a rule easy to understand, allow us to answer our customer needs faster than any competition that we face in the market in Brazil or out of Brazil, probably also in the United States.

Dr. Leeanne Aguilar

Yeah, you make a good point. It's easy to lose sight of the day and priorities because we just get busy. Like you said, there are so many tasks to do during a day, and it comes down to prioritizing. And if it's really clear in your mind that the customer is at the forefront of those priorities, then it really helps you get into that alignment to prioritize the customers, and like you said, everything else will fall into place. And so I'm also hearing that technology is super important to you. So it's customer service and then technology always being able to provide products that are at the leading edge that have capabilities that also provide ease of use for the customers and benefits and advantage to the customer. So if you're always innovating and if you're using the latest technology, then you're providing better tools for the customer as well. Now, you said something uh powerful when we spoke before. Some companies become so large they expect customers to fit the product instead of the company fitting the customer. How do you operationalize personalization at scale without losing efficiency?

SPEAKER_01

This is very important for my business, that idea. We need to understand the customer. Sometimes understanding the customer, it's uh to listen and just give them the orientation how to use the equipment in the proper way, because um, you know, uh it's like an air conditioner. Sometimes you people think that if you have a regular air conditioner, you put on some temperature like I don't know, 60, you make cold faster than if you just put a 70, if your goal is 70, and it's not right, that's wrong. Because the capacity is that one, you get that time to reach 70. If you put the set point on 70, or I don't know what is your preference, let's imagine that it's 70 to this example, and the time to reach 70 is the same if you put the temperature on 60 or 70. When we go to to the transport refrigeration equipment, the wrong set point may cause damage on the, for example, you are transporting some butter and you put a colder that's needed, you damage the butter, you cannot do that. Or lettuce the same, or if there is some product that did not damage the product, but you waste more fuel. And this is the basic cost of any component that has the logistics on its core. So when we think about choosing the right equipment, allow the customer to save money on the fuel, save money on the goods, because if you choose properly the equipment, you can probably have a better transportation of your of your products. And sometimes it is made with the a good service in terms of sales. I understand that our sales, they are always a con our sales is a consulting service and not a shelf product, and that's uh the difference. When we think the product and uh as a shelf product, it's this is like your home air conditioner. You go to the Walmart, you buy air conditioner, and you just install in your home, and that's it. But you don't have the abilities to know if that air conditioner is the proper one that you need, because there are many variables to check it. And my uh sales guys, they are trained to understand this easily. So this is not a hard job for them, this is their job. This is in uh in the core of my business, understanding the need to uh choose the right product, thinking in save money on feel, save money on the product, because sometimes you damage if you put colder than it's needed, especially is to demonstrate to the customer how to work with the product in a way that makes him uh get the best from the equipment. When you have a shelf product, this is difficult to happen because first, people from other companies they are not trained to do that. They have that product, I have this product, I have to sell for those size of trucks, and I don't care if uh we'll be transporting some poultry, some milk, some medicine, that's the product. And this is very bad for our primary customer, that is those logistics companies, but also for the end customer like you that may you went to to the Walgreens and took some pills for your children, and it requires some care. If you put colder, a temperature colder than it, you damage that medicine. So it's pretty important this understanding from customers for the final customer, for the final consumer as well.

Dr. Leeanne Aguilar

Yeah, because it's not really about the product that you're selling, it's about the advantage and the benefits that you're providing the customer. So if you understand what their goal is, which is to transport whatever specific product safely, so they arrive at their destination in the best quality possible. Part of what you're saying is educating them on how to use your equipment in order to achieve those results. And so I'm hearing, yeah, that's that that's the main goal. The the main goal isn't just for them to pick whatever off-the-shelf refrigeration system. They have to understand the right system. So you're consulting with them to figure out what they're transporting, what the ideal climate for that specific product is, and then you're helping them understand, you're training them on how to use your product in order to achieve those results.

SPEAKER_01

We try to do this usually on sales, but you know, when customer is going to do the purchase, when you are doing the purchase, you you become harder to negotiate, right? We are trying to get some advantage. This is part of the business. We are there if I'm buying something personal, yeah, I'm the same. And um, we know that sometimes the customer do not open everything for the people on sales, and that's why you have the corporate training. In Portuguese, it's Universidade do Frio, what is in literal translating it's like a code university. We're talking about corporate training in the United States, and we have a specific training that is how to use your free walking that for that customer that already bought, so we are not doing that to make the sale. The sale is done. He already bought the equipment, he's using the equipment, so there is a specific training to get the most advantage of the use of using a frequency, and so this service is provided, of course, to trying to make the sales before, but even after the sales, after we already did it, so it's done. Yeah, we keep taking care of that customer. Uh, and this is a commitment in the end of the day with the my customer success. The idea of uh he use the best of the equipment, and uh one of our main goals is uh an equipment that gives less headache for my customer. All the equipment, transport equipment, you have compressor, you have the mounting, all the vibration, problem of service. So it's all the same. But in the end of the day, I wanna offer the best pill for his headache. So service, less time on the maintenance. I understand that those that time that my customer has, or the transport refrigeration customer has the truck stopped. It's a day that uh the that cost it's getting higher and higher because you need to rent another truck, and sometimes you you have um financing, so you are paying your financial for the new truck, you are paying uh a rental truck, you have uh insurance on the truck that is in the service, and the rental problem with your employees, so it's a a lot of lot of problems. Yeah, one week extra of a uh a truck that is in the service uh may represent the price of a small equipment. So it's a lot of money. Yeah, and okay.

Dr. Leeanne Aguilar

Yeah, like I've I've I've heard or you know, I've often said it cheap often costs you more in the end, so it's expensive to buy cheap or to go the cheap route.

SPEAKER_01

That's the philosophy.

Dr. Leeanne Aguilar

Exactly. Now you gave a clear example of design philosophy, also, which is fewer parts, stronger construction, and products that don't fail in the field. Where do you see competitors compromising most often? And how does that show up in real-world uptime?

SPEAKER_01

You know, when we think about the components, I cannot say that my main competitors, especially in the United States, they are using bad components that justify that time that they lose. I think that is really the service and that idea that um which is important is that um very large companies and uh for the small ones, they have to take a line to get the service and the shelf product in terms of the not receiving the right product for the application, which means that will cost more in service because many times you need more time to repair, because that component, uh basically all the mechanical components we think about time, but it's not lifetime in in hours, it's in days, it's in hours running. So if I work more, that hours will be done in less time. Uh, it may have a year to run the hours of compressor or five years. If I choose the right equipment, I can last for five years and not need to go to maintenance and exchange or repair in one year, one year and a half. This is what I think that you are doing different in every country that we are working. That idea, if you see my list that you are just starting in the United States and it's smaller than Brazil, I think that you are offering 12 or 14 models against my competitors less than five. And that many, many models is not to confuse, it's to find the right equipment for the operation. Have something that can last longer than my competitor. That's the final goal.

Dr. Leeanne Aguilar

Right. And how many models do you offer of your product?

unknown

22.

Dr. Leeanne Aguilar

22. Okay. So and it's so 22 models. So it's it really is about consulting with them, finding about the the size of their their truck, their container, and then finding out what they're transporting and then consulting on the best fit for their needs.

SPEAKER_01

Yeah. Until the end of this year, we will be reaching twenty five.

Dr. Leeanne Aguilar

Okay.

SPEAKER_01

We just keep expanding and trying to find Every time, more and more those specific applications to attend the customer needs.

Dr. Leeanne Aguilar

So learning from your customer, getting their feedback, figuring out what their needs are, and then modifying your equipment or creating another version that fits those specific needs.

SPEAKER_01

Yeah, this is a work that we are doing constantly.

Dr. Leeanne Aguilar

Research and development and innovating new products. Yeah. Now you've said many brands talk about quality, but don't build into the small things. What does quality with integrity look like inside your manufacturing process and supplier decisions?

SPEAKER_01

I have a very interesting example because the first time that I uh that we faced that, uh, I didn't understand. I was talking to a guy in the United States in Texas about the components that he that we suggested him to have an inventory to repair frigoking. And he asked about condensers. And he showed me that he has a full inventory of condensers from my uh competitors. And um, I didn't understand because we do not face that uh situation of uh need to change condenser very often to just find have that component. Uh it happens sometimes if you have an accident or something like this, and uh we were concerned about having excess of inventory. If I only think about my business, it will be a sale of a part. But if I want to have stronger partners, it's better if he pays for what he needs, not having old inventory. So and I try to understand, and this is basic for us since we started that we need some protection for for the breeds and use a mesh uh since ever. And it's simple, it's cheap, takes time to put, yeah, but it's cheap, not a big deal. And my competitors for that specific model, they do not use it. So for them, the idea of changing the condenser is business. For me, it's uptime, so not good. Yeah, this is a very small example to show uh this is an option during the development of the equipment that it's obvious for me. We need to save the product, not sell components. You know, I think that's a good example that can explain a little bit of that.

Dr. Leeanne Aguilar

Right. Yeah, so it's not just about you're uh pushing a product in the inventory you have, but um if you identify a need or an issue it's going in and creating a solution that's actually going to serve the needs of the client. Now, you pioneered my Frigo King, a free app for remote monitoring using the driver's smartphone instead of requiring a separate paid data line. What problem were you solving? And why was free a strategic decision?

SPEAKER_01

I understand that the connected equipment is the future. About 10 years ago, I had that view. And since then we start to work on a solution. What some competitors they are doing in the market, they're trying to compete to tracking devices. And okay, I understand they are trying to make money with the service. And 10 years ago, that was something that was very strong on the business magazines trying to get assessed or something like this to improve your income. But I I never believed that system as a new income source. I believe that it could support me uh to get information to provide better and better solutions for the future. And that view from 10 years ago, this is very important now on this new era when the database is like uh a new oil, new petroleum, new gold, because I have a 10 year database basically now, because I never charge for that, and everything is available to make improvement and equipment. Uh so uh first at all, I understood that the SAS was not the way. Second, I were under that moment, and I still believe that I'm not able to compete to the track uh devices. They are their core business is that they can offer much more than I can. I can offer to see temperature, to change the set point, to know the position, but the tracking can support my customer to save fuel, to save tires, to avoid some problem uh with the employees, with the law. So in Brazil, there is the safety because there is some robbery, so they can provide some solutions on that, and I cannot provide that. I'm providing another kind of solution. So we go through two paths. First, for those companies that don't have money to pay for the tracking device, they got my system for free. It's better what I can offer than have nothing. They can check the temperature, can check the position, can change the set point, and some other features uh that uh are more important for us than for them. And for the large companies who can hire the tracking device. The system is open. They can get a sign, the sign out, and they can integrate to their system, and that tracking device can read all the information on the equipment and consolidate in just one database. And it doesn't invalidate my own system because they can work both together. On the to the tracking device, they got information in the equipment itself, and I got informations in the app on the cabin control so they can run together, no problem.

Dr. Leeanne Aguilar

Yeah. Yeah, that I like that philosophy. So instead of creating a software solution that was your, you know, another revenue stream, basically, you chose to have an open integration system that would encourage customers to connect their system to their broader fleet platforms, and that would give you a lot more information, data that would not only help them in the operations get, but give you the information that you need in order to continue to innovate and become more efficient and effective in your own solutions. And yeah. And so instead of creating that closed system that limited the adoption, you opted for the open system to encourage adoption and get wide data instead of just the limited data from the larger service providers who could afford it.

SPEAKER_01

And you have that documentation, any tracking device in the world, if you wanted to connect with Frugal King, we just apply. No big deal.

Dr. Leeanne Aguilar

And you're you're developing battery integrated refrigeration with solar support, reducing battery weight compared to traditional trailer systems. What's your vision for electric refrigeration and what has to change for it to scale globally?

SPEAKER_01

I think that electrical is there is no way back on that. The equipment that uh we develop it's focused on very small trucks. For trailers, it's uh a little bit different. We are not going through the trailers now, we are starting. So now talking for the small ones and the small trucks, there is the problem that is always opening and closing doors. And comparing to the trailer, it's uh this operation is much more difficult in terms of consume of energy because if you have um product that entering the right temperature, you place the equipment on that right temperature. The only thing, the only uh heat that you need to exchange is that heat that was changing through the panels, but it's a panel, it's a polar 10, so that's not too much heated entering that box. You do not use a lot of energy doing that to keep that temperature. So there are some solutions for trailers using solar panels, but our job for small is much more difficult. I don't have such great area, small ones, small trucks, and always opening and closing doors, so always open, enter heat, and I need to get that heat out very fast, so it's a very, very hard job. We did a very good product that is the e-flex, and to allow in the market, usually they go for 12 volts compressor, which means um uh to get the power, you have a very high current, or you do not get the power, and they do that to connect on the battery of the truck or van, which is a problem because there is no such current available. Went to the pet for on a 48-volt equipment, which means that we can get more power, lower current, and a battery that we can supply ourselves, a lithium battery, so very advanced, a good um system, BMS system that is for safety. And since we do not use the truck battery, it's our own battery, we can support our own solar panels, and according the size of the roof, according the operation, we can reach um something that is almost uh sustainable or even sustainable. We have an example. Our first prototype, we applied in a city called Natal here in Brazil. It's uh very north of Brazil, but it is in a region there is a lot of sun all the time. We installed in April, and we are in January talking today, so almost one year, ten months, that is installed, and it never needs to be recharged, only the solar panels recharge the equipment, which is pretty impressive.

Dr. Leeanne Aguilar

Yeah, that's interesting.

SPEAKER_01

Um for the future, and we have a job in my engineering department that is checking new technologies. I understand that we need two things to get those equipment for bigger trucks or to all the equipment sizes. First, it's um solar panels more with more power generation. When we started these e-flex, uh the studies that solar panels that uh are flexible that we can bend could barely reach 100 watts. On the first test, we started with 200 watts. Now we have with 500 watts flexible, so it changed everything. If I can use a 500 watts solar panel to its one kilowatt, it's much better. Maybe in a few years we can reach three, four, five kilowatts, and it will allow us to get more and more models to this electrification with not such big prices. The other thing, of course, is the battery because the battery is the problem in terms of price. The equipment is more expensive because of the battery. So if the battery starts to become every time cheaper, which I do not believe that much, but um, let's imagine that is a possibility, or on the same price and same size, getting more capacity, or both situations together, of course, we also can get more and more power, and with more power, bigger equipment and solution for more sizes. And I think that it will be happening, especially the part of uh more power, not price of battery, but the same battery with more power, which is good. And the solar panels every time more powerful. I think that uh you are going through that way. We also are studying some hybrid solutions, trying to connect some alternator or something like this. But personally, I think that it's too complicated for maintenance, and I don't like solutions that will cost more in maintenance for my customer, and that's why I think that it's not the way. And the alternator usually uh runs integrated to the wheel or the I don't know if the English is carden, I don't know if it's the right word, but uh, where the transmission is made, uh, the power transmission is made. This is uh something basic. We do not create the energy, you transformate it. So uh if it's a fuel truck, I getting the energy from the fuel and becoming electric. So there is no sense. I don't believe in that concept. If it's an electrical truck, this is already in the truck battery, so I lose autonomy. Because that solution that you are offering can be applied on both situations on the electric truck, on the electric vehicle, uh, increase autonomy because do not take energy for from the truck or van. On the diesel one or petrol, gasoline, you do not put in a compressor on the engine, so you say fuel. It's uh it's equipment that you can get all the benefits of the electrical equipment and not something that um um may cost more in the end of the day for my client.

Dr. Leeanne Aguilar

Yeah, exactly. Oh, exciting innovations. That's great. Now you're being intentional about the US market, building a service partner network before introducing large equipment. What does service readiness mean to you, and how do you choose and train partners to protect the brand?

SPEAKER_01

We have a schedule for that. Uh first, the first job now is trying to find who is uh who are able to support Frigo King. At this first time, we are trying to find partners, people that have companies who are already in the market and don't want to service that dual poly that you have in North America because there are only two companies that basically they have a good product, but the same benefit and the same problems. And there are some independent companies that make service. I'm looking for them to service us. This is the first step. We are looking for them. That's it. We are just looking and making some list of who are available and who are interested to work with us. The second step: I will start my corporate training in the United States with someone that will be hired to do that, and so probably will be inviting them or visiting them and training them online. This is the way we are successfully doing Brazil and Latin America. We have a platform for online education, the same that some technical course or universities use, so very robust, very good platform. And we can do online, but we also can do in some something in person in the United States. This is the idea of the second point. We are very flexible in terms of um inventory, we do not require to buy components from Frigo King, but to service Frigo King, you need to use components for certain quality. So there is in terms of compressors, we use an American brand called TC Shy, but you also can use another American called Sand. If you if my service uses one of them, that's good, no problem, because it's basically high standard quality boat. My competitors require to buy from them and they overprice it. And when they overprice the components, the customer will pay more, which is not the best solution. The idea, I don't want to make money selling parts. I want that my customer be satisfied with my product and last longer. It's more simple.

Dr. Leeanne Aguilar

Yeah, and I hear that your commitment still to the customer, putting the customer first. So you're looking for partners who can provide the service to keep your equipment running and satisfy the customer long term again. So it's really finding people who are in alignment with your values and serving the customer. Yeah. So Marcos, looking, I had three to five years. What does success look like for Frigo King and PowerMobile in the US and globally? Product roadmap, service footprint, and customer impact?

SPEAKER_01

First at all, we have the zoo's equipment that is for traders that we are launching this year here in Brazil. Looking for the next years, I expect a success on this product, which means that uh we will increase our business in Brazil and Latin America in certain parts of the market that we don't have uh a share yet. And what I understand is that the market is uh demanding that, demanding a new, uh very good and reliable equipment, and we are offering that. This year it will it's been launched here, and I believe uh we'll be ready in three, four, five years top to get that into the United States the equipment with uh all the barriers uh already broken, especially in terms of service. And when I think about this service network that you are starting to build in the United States, it's because in that time and the time how long we will take to start with the zoos equipment in the United States, it's how long it will take until I get this full national coverage, which I predict five years. We started last year, so four years ahead. Now, this is our goal get is national coverage, because I cannot offer a product before getting the service network ready. And this is very clear for me, for my team, and for the people that I talk to when I introduce the company. Um, I also understand that uh the measure of uh the success of this job in the United States is starting a company in the United States. It's this is always my idea. This is not related for any new thing from politics or tariffs and all those things that are uh in the newspaper. This is in my business plan since the beginning. Since I reach some number of equipment being sold every month in the United States, I have a company producing the equipment in the United States. Now, with the tariffs and the price that you are doing, we are just investing money because you're not making money, you are not able to make money with these tariffs. But I don't care because in the end of the day, that prices they were not made thinking in sending equipment from Brazil to the United States, but the prices were made considering produce manufacture into the United States. Uh looking so mean success for me in the next year. Yeah, in the United States, having the company and be prepared to launch the ZIS, and in Brazil get a good share of the trailer market with the ZILs and Brazil and Latin America. This is my main goal to understand that we could reach with what we are uh planning, what is strategic, and this is what you are looking for.

Dr. Leeanne Aguilar

Yeah, exciting things coming up. I'm I'm looking forward to watching your journey and and yeah, very exciting. Well, Marcos, thank you for sharing the Frigo King story, how you choose durability and uptime over price, expanded globally, and building digital capabilities that make refrigeration smarter and more reliable for fleets. For listeners who want to learn more about Frigo King, and especially those interested in cold chain innovation and service partnerships, where can they go to connect you and your connect with you and your team?

SPEAKER_01

FrigoKing.com. You can find all information and see to send any message. Me or someone from my team can answer and give all the support that the customer needs.

Dr. Leeanne Aguilar

Great. And to everyone listening, if you enjoyed this episode, please subscribe and tune in for the next conversation on Industry Ignited. Until next time, stay bold, stay curious, and keep igniting industry.