Common practice dictates that businesses should limit the number of similar suppliers to increase focused buying power to leverage price reductions. It is a tale as old as time. With the right volume and clout, a business can reach “National Account” status and have a devoted sales representative dedicated to giving them discounts on purchases. The relationship is brilliantly summarized in a sales scene in the underdog classic, Tommy Boy.
Tommy: “Here’s the way I see it, Ted. Guy puts a fancy guarantee on a box because he wants you to feel all warm and toasty inside.”
Customer: “Yeah, makes a man feel good.”
Tommy: “‘Course it does. Why shouldn’t it?”
In our experience, the customer (you) is guaranteed heavily discounted pricing by choosing that supplier. You followed the recipe for success and can now sit back to reap the rewards. But can you? As the movie’s conversation continues:
Customer: “But why do they put a guarantee on the box?”
Tommy: “Because they know all they sold you was a guaranteed piece of sh*t. That is all it is, isn’t it?”
Forklifts and related material handling equipment all fall under this illusion of a “guarantee” when lowest purchase prices are obtained. What tangible savings are tabulated and provided for proof of reduced total cost of operation (TCO)? There is not any because this is only half the equation. With original equipment manufacturers (OEMs) providing national accounts for initial sales, the ongoing and future maintenance is provided by the disjointed dealer network. Quickly, a sound initiative unravels as maintenance and rental rates, frequency, and fees are unchecked and unmonitored. The asset’s life cycle along with future opportunities are lost downstream.
Our stance is simple. If you have a national account, maximize its effectiveness. If not, you can use ours. Ultimately, prework needs to be completed to determine what is needed (aka, set the project baseline), and then implement a quality solution. Once implemented, track, measure, and report the results, leading to continuous improvement and a successful program.
