In the spirit of CROSSHIRE In pursuit of what sounds like an attractive hire deal, Rental Rate Roy encounters competition from an unexpected quarter. HAVING YOUR CAKE & EATING IT
The above heading is an oft-used phrase, which I previously didn’t fully understand, but now I comprehend its meaning unequivocally. Imagine my excitement when I received an enquiry for two telehandlers for 24 months guaranteed hire. This sort of call is rare. We tend to get some old codger phoning up wanting a Wacker plate for an hour, and being most indignant that we don’t hire products by the nanosecond as opposed to a minimum day.
So, in anticipation of the largesse that such a call may bring us, I hastily rang round potential suppliers seeing what was available. After a considerable amount of work, I came across two relatively young part-exchange telehandlers in stock at the local dealer. There then ensued what can only be considered a scorpion dance between myself and the area representative on the prices of both machines.
After what seemed to be an eternity, we came to a mutually agreeable price. I went back to our customer with as sharp a deal as I thought I could go to, to pleasingly hear that we were “extremely competitive and absolutely in the driving seat”. I promptly called the representative back and put both machines on reserve for 48 hours.
Once said timeframe had elapsed, I rang the customer, who didn’t take my call. I subsequently left a message, which wasn’t returned. I thought I’d e-mail instead… still no reply. At this I was starting to smell something fishy, and it wasn’t fish. So, in a fit of pique I cold called the gentleman in person (much to the amusement of my team as they call me Roy the Olympic Flame - because I never go out).
A somewhat embarrassed customer - clearly not expecting me on his doorstep with some promotional mugs and a packet of Bourbon biscuits - ushered me in and we sat in reception (no cup of tea then?). He proceeded to skirt around the issue and talk about everything including Brexit, the weather, global warming but not the telehandler deal. I decided to take the bull by the horns and go straight for the kill and ask for the order. A somewhat uncomfortable shuffle and a change in colour of the customer’s face started to tell me that things may not be going my way. In a stuttering fashion he advised that we hadn’t been successful on this occasion.
I was gutted! However, I kept my cool and didn’t use any of the expletives that were flying through my brain. “How far out were
we?” I asked. This seemed to lighten the customer’s mood, dramatically becoming less monosyllabic and more forthcoming. The fact was that he’d purchased two brand new machines. Whilst this was still a disappointment, it was a little less painful. However, this swiftly changed when I was told that he’d been approached by the same manufacturer I’d been dealing with - and, in fact, advised that it was the same sales representative with whom I’d been negotiating. “Yes, they did me a cracking deal. I bought the machines,” he said. “Their service engineers are going to service, LOLER and maintain them for us and after the two years of my contract they’ll give me a guaranteed buy-back. So I can’t lose.”
To use the phrase of a tabloid journalist investigating a seedy house of ill repute, I hastily made my excuses and left. On the drive back to the depot I couldn’t help but feel somewhat miffed. I’d lost a two-year hire for two machines to my own supplier!
In fairness to them, they hadn’t necessarily done anything wrong, but the manner in which they had structured the deal was such that it was almost as close to a contract hire as if we’d supplied them. The only difference was that they had also tied up the finance on the job.
By coincidence, the manufacturer’s representative called to follow up on the two reserved machines. As you can imagine, I told him his fortune in words of one syllable, citing the fact that I was happy to compete with fellow hire companies, but took exception to battling against my suppliers too! However, this was water off a duck’s back in his case, responding, “How do you think I’ve got such nice young machines available for resale”?
I read the other month that a plant manufacturer is also starting its own hire fleet in Europe, offering certain machines on a minimum one-month hire. Am I missing something, or are these manufacturers really that dim as to try to compete with their own customer base in the hire industry? Isn’t that trying to have their cake and eating it? And, by the way, I didn’t leave the biscuits with my customer.
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