Talking Tough

An engine company rep I know once called Fern Forget the most feared negotiator in the Canadian trucking business. I can think of a thousand reasons why: that’s how many heavy- and medium-duty trucks Forget bought every year as director of purchasing for Rentway Ltd. With Rentway’s acquisition by Penske Truck Leasing last year, Forget is leaving to start his own Calgary-based consulting practice-but not before I asked him to divulge some strategies any truck buyer can use to negotiate his next deal, even if it’s for just one truck:

“Everyone thinks negotiations are about technique and attitude and confrontation, but for me it all starts with preparation. It’s easier to be assertive and confident if you’ve done your homework and can stay focused on the vehicle specification you need to get your job done.

Know what you want and why you want it, and stand firm. Make a checklist of specific features that are important to you-things that will make you more competitive, or will please the operator of the truck, or will enhance resale value. Then go out to the market and learn as much as you can about products each OEM offers that can meet your needs. If a salesman tries to hook up with you, make it clear that you’re a serious buyer, but that you’re not interested in buying just yet.

This way, when you finally do sit down with each supplier, you’re not there to spec the truck, and you’re not there to take test drives. You’re there to negotiate.

In my negotiations, I talk about three things: 1) product quality, 2) customer service, and then 3) pricing, in that order. Price is never the main concern. For example, when I started doing purchasing for Rentway, I wanted to buy directly from the OEM. Everyone wanted me to go through their dealers except for Freightliner. They conceded first, and now Freightliner gets about 65% of my business-over $70 million a year. Other reps complain that I give Freightliner preferential treatment, and I suppose that’s true, because Freightliner treats me preferentially. They don’t always have the best price, but nobody has matched the service they give me.

Price is an issue when there’s a big discrepancy among suppliers offering basically the same spec. Let’s say Brand A is $5000 more than Brand B. The Brand A guys argue that their truck may cost more, but that I’ll get that back with a higher residual value, or in saved recruiting costs because my drivers will like their truck better.

That’s bull. I want my spec for the best price, period. I don’t care about three years from now. So now I can go to Brand A and say truthfully that Brand B is $5000 better on the price, and if they can beat it, come talk to me. I’ve told them very clearly what they have to do to compete for my business, and either they play ball or they don’t.

But really, the price you pay for the truck doesn’t count for anything if you give in on your commitment to your spec. I know a guy who bought the special of the week right off the lot. He’s pulling Super-Bs with a truck spec’d to handle 80,000 pounds. He’s blowing drivelines left and right, but boy, he got a hell of a deal. The best negotiation is a win-win outcome where both sides do well, but you do best. You lose when you forget what you’re there for, and you pay for it for a long, long time.”