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re: So, about that tariff: Just got hit with $11K adder notice

Posted on 3/7/18 at 6:49 pm to
Posted by MrLarson
Member since Oct 2014
34984 posts
Posted on 3/7/18 at 6:49 pm to
What was the conclusion from the 2 hr phone conf?

You still pissed or did they make a case for the 11k hit you're going to take?
Posted by Ag Zwin
Member since Mar 2016
20025 posts
Posted on 3/7/18 at 7:19 pm to
quote:

What was the conclusion from the 2 hr phone conf?

You still pissed or did they make a case for the 11k hit you're going to take?



Ha! Neither. Was a completely different supplier and different issue. Zero overlap.

Introducing a new thing to the industry. 800k machine we were renting to our biggest customer. We were actually re-renting as we tent s from the distributor. Big ticket item with no track record here, so this was an “intro” deal.

We ended up renting for 3.5 months. Distributor insisted we owed 4 months, instead of prorated. In the heat and confusion of getting this thing in before season started, I missed their point that they would not prorate. I have rented a decent amount of machines, and have never not accommodated prorating months on projects with uncertain lengths.

My mistake. I missed that they included it (though they have never rented before, and were making up their contract on the fly). My point to them: The machine has no incremental wear on it and the only reason they are holding my feet to the fire is baecause they can. They agreed this was the case.

Again, my mistake, but I have MANY times adapted to the “real world” in the name of both what’s fair and what keeps trust in the relationship. You get legalistic with me, and that trust is gone.

There many other things in the call, but this is what frustrated me. Paying them another $15K is annoying. Questioning my integrity because I push back is insulting. The truly infuriating part is the idiocy of a “I’m gonna get what I can” mentality when this is the leading edge of what could be a huge opportunity. If my customer knew this was going, they would never consider this machine again.

Our customers trust us to do what’s right. This one sends us machines to rebuild that may generate bills of $100K, and never asks for a scope of supply or estimate up front. They just know we treat them well and send back a solid machine at a fair price. For me to insist they pay another half month would be very bad.

Again, my mistake. I just never thought someone would expect 10 days’ rental to precipitate another full month’s rent.

If it were not for the fact that this machine is a game changer, I might not be as ready to write the check. I would still have a hard time letting someone have ammo to say I walked on a deal, though, even if I knew I was being screwed. Reputation matters.
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