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Some
international rental companies doing business with
American manufacturing companies have found the
relationship frustrating — not because they didn’t
want to do business with each other or because of any
intended complication or difficulty, but, well, just
frustrating … Not much of an answer. So we wanted to
find out just what the problem was and how it could be
solved. The question: How can overseas companies be
assured of good service from U.S. suppliers?
What
we discovered to remedy the frustration just might be a
prescription of good old-fashioned communication and a
mutual understanding of the needs of both the customer
and the supplier.
Here
are some solutions to the key problems that have been
reported to Rental Management:
Problem:
Overseas rental companies report that they are quoted
one price when they are in the United States, but they
are charged another price when they place the order for
the equipment from their offices back home in their own
countries.
Solution:
Manufacturers note that these rental companies should
understand the extra processes involved when shipping
overseas. These additional processes cost money. When an
international customer gets a quote, say, at a trade
show, the quote may not include the freight, insurance
and bank fees. All of this will affect the final price
of the equipment, notes Steve Allmand, executive vice
president of Allmand Bros. in Holdrege, Neb., which is
rapidly developing its international business and not
long ago established a European base of operations in
Amsterdam.
“The
difference in price is really a token amount,” says
Allmand, who heads the company’s international
operations. “We incur additional expenses that are
unique to the international customer. This includes
knocking down finished products, which then have to be
palletized and containerized for export.”
Joseph
Jabbour, president of Rand Equipment of Mocksville,
N.C., and a former associate member director-at-large of
the American Rental Association, suggests that
international customers attending trade shows ask for
the specific country representative assigned to handle
orders from that country. “This will help ensure
trouble-free orders,” says Jabbour. “We’re here to
help everyone.”
Problem:
International customers are frustrated by listed
toll-free 800 numbers that do not work outside the
United States.
Solution:
Although international orders account for a very small
percentage of their business, American manufacturers
still want to be accessible to their international
customers. Solutions include e-mail and the World Wide
Web.
“We
hope our Web site will help in this regard,” says
Allmand, who adds that his company soon will have a
second-language Web site available to help with this
problem.
International
customers can e-mail manufacturers, many of which report
they would be more than happy to call those overseas
customers who are interested in their products. “We
will e-mail, snail mail, fax or call direct — we will
do whatever it takes to serve an interested party,”
says Allmand.
Of
course, if you are serious about doing international
business, that is the only practical way you can
operate. Messages simply have to go back and forth, one
way or another.
Problem:
International customers would prefer not receiving
partial orders, which can be costly.
Solution:
When placing orders, international rental companies
could avoid a lot of misunderstanding and frustration by
specifying on their orders their preference to have
their orders shipped in full.
“Intentions have to be clearly stated on both ends,”
advises Jabbour.
“If
we can’t fill an order when the container needs to go
to meet a deadline, we will pay the freight on whatever
else needs to be shipped,” says Allmand.
Problem:
Sometimes not having all of the necessary documentation
can slow things down.
Solution:
Both parties should make certain that all of the
necessary documentation is in order. This includes pro
forma invoices specifying such details as freight costs
and other fees in addition to equipment prices, bank
information including letters of credit, forwarder’s
address, shipping dates, perhaps routing and whatever
else may be needed to clarify the terms of the deal for
everyone involved. Make sure all the i’s are dotted.
Problem:
International customers become frustrated when they need
to speak with someone at the manufacturer’s front
office and are bounced from person to person and
department to department.
Solution:
When placing an order, or when speaking with the
appropriate representative at a trade show,
representatives of international rental companies should
get the name of a contact they can depend on to help
them through the entire process of ordering and
receiving equipment.
Much
frustration and lost time can be eliminated just by
using good sense and communicating clearly. If both the
supplier and the international customer assume nothing
of the other and clearly state what each expects of the
other, there is an excellent chance that international
commerce will be a rewarding experience for both
parties.
And
it should be. Overseas companies spend a lot of money to
get to the A.R.A. show, and — because of the maturity
of the North American rental industry — they often
find items there that they can’t find at home. This is
important business for both the supplier and the buyer.
This checklist should help pull the snags out of the
relationship. |
