Some big farmers think they have the size and power to force the best deals from suppliers and business contacts.
And some small farmers think they’ll never get anything but a rotten deal from agriculture service providers.
Both of those groups are wrong, says farm management consultant Brent VanKoughnet.
“Good businesses are picking who they like to deal with,” VanKoughnet, who also farms near Carman, Man., told the CropConnect conference Feb. 19.
“Size does not make up for the pain-in-the-ass factor.”
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VanKoughnet said large farmers have been shocked to find that some of the best farm service companies won’t do business with them if they have had a difficult relationship in the past.
Those companies have decided to focus on serving their best customers and don’t have time to deal with difficult customers.
“Lots of big customers who thought that they had the leverage … to say ‘come to us because we’re big and important,’ it ain’t happening,” said VanKoughnet.
He said farmers sometimes think that different business rules apply to them and they act accordingly. Having lots of acres has also made some farmers think they can squeeze suppliers.
However, VanKoughnet said some companies just won’t deal with fractious customers, regardless of size.
The flip side of this situation is the small farmer who thinks he will never get a decent price or deal from top suppliers because of the limited dollar value of the business he represents. VanKoughnet said small farmers can get good deals from the best suppliers — if they’re easy to work with.
He took that approach himself with his local fertilizer dealer, and it worked.
“I wanted to be the simplest customer they have because I (have only) 700 acres and do a bunch of wacky stuff and I need that (service) close by,” said VanKoughnet.
“It turns out that by being one of the easiest guys for them to deal with, I get 3,000 acre service, I get 3,000 acre price and it’s a good deal for both.”
VanKoughnet told farmers to try to be up front and clear with suppliers and service providers about what they expect but to also try to be an attractive customer. Business relationships are more interdependent today than in the past, so being co-operative rather than combative is often key to getting good deals.
