Story by DK Knight,
Co-Publisher/Executive Editor

If you’re a logger and are not content with your pay these days, chances are good that it’s your fault. Have you actually pressed for higher rates in a businesslike manner, citing specific increases in operating costs and other related stress-inducing challenges, or have you merely whined and complained, perhaps most notably to your wife and dog? Have you lobbied for a specific amount, enough to sustain your business going forward, or have you reluctantly settled for a token increase, accepting the first offer extended? Did you ask for money to offset losses when your trucks are held up at the mill for, say, two hours or more? What about additional costs you may incur in closing out a tract?

When working out a timber purchase deal some wood brokers have been known to promise a landowner that the logger assigned to the harvest will do extra work, but they don’t bother to inform the logger up front. I heard about one logger who was coerced by his broker to remove some trees near a landowner’s residence. As luck would have it, his feller-buncher ran over and ruined the landowner’s septic tank. His costs to bring in a dozer to free the machine and replace the tank amounted to more than $2,000, which he was forced to eat. It was not a flavorful meal, and it left a bad aftertaste in that the upset landowner subsequently cast the logger and wood broker in a negative light.

Those who rely on your services are typically not going to voluntarily offer you more money. They are not wired that way, as it is in their interest to pay no more than they have to, but these days they often will pay more, depending on the prevailing supply-demand situation. For instance, a mid-south businessman who recently decided to shut down his logging operation told me that several brokers offered to hike his cut-skid-load rate by 25% if he would reconsider. He did not. For what it’s worth, I hear that one company, IP, is said to be offering higher than prevailing pay to new logging outfits, at least in some locations. If IP will pay rookies more, it can pay experienced players more, and so can other companies.

Learn To Negotiate Effectively

It’s up to you, and you alone, to make your case. Unfortunately, too many loggers fail to make their cases, or fail to make them very effectively. They are weak when it comes to the skill of negotiation.

A case in point: A longstanding friend who interfaces with loggers and wood brokers on behalf of a consuming company, and who fully understands the positions of both the logger and the consumer, told me recently he was surprised by how timid many loggers are when it comes to hammering out rates. According to him, some are reluctant to even come up with a figure, let alone are prepared to back it up with cost documentation.

Given the falloff in logging capacity and today’s thorny transportation challenges, combined with an improving economy and greater demand for fiber and logs, you are in the best position today you’ve been in for years to gain some long overdue financial traction. Don’t undersell yourself and your organization. Stand up for yourself and use this newfound leverage! In not stepping up you are performing a disservice to yourself, your company, your family, your employees and your fellow loggers. By not acting, you are helping keep rates at an unrealistic level.

You may wince at the thought of negotiation, but it’s a skill that can be acquired, developed and refined with practice. Your demeanor could be the most important asset you bring to any negotiation. Be positive, cool and confident in your position to show that you are sincere and trustworthy. At the same time, do not be adversarial or overly aggressive, timid or under confident. Many times getting what you want, or most of what you want, is “all in the asking.”

A negotiation that ends well is built around a good understanding of the other party’s interests and priorities—what they wish to accomplish. This makes it easier to find common ground.

Be prepared and know what you have to offer. Have a clear sense of what you want to achieve, what your top and bottom range is, but be willing to consider other issues, such as consistency in delivery, volume, quality, etc.

A successful negotiation is one in which neither party comes away dissatisfied. It is one that builds a relationship for the near and long-term.

Look for opportunities to sharpen your negotiation skill through training offered by consultants or through local business groups. It seems to me that this is one area where state or regional logging associations could take the lead. It would be a great service to members and might even help attract new members. Besides, aren’t those same old SFI-oriented classroom sessions getting a little boring and threadbare?

The Power Of Humor

Various forms of humor are said to be effective in a negotiation. Here’s an example found on nairaland.com:

The Prime Minister of Israel sits down with the prime minister of Palestine at the beginning of negotiations in an effort to resolve the ongoing conflict. The Prime Minister of Israel requests that he be allowed to begin with a story. The Palestinian Prime Minister agrees.

“Years before the Israelites came to the Promised Land and settled here, Moses led them for 40 years through the desert. The Israelites began complaining that they were thirsty and, lo and behold, a miracle occurred and a stream appeared before them. They drank their fill and then decided to bathe in the refreshing water that God had provided. Moses himself joined in.

“When Moses came out of the water, he found that all his clothing was missing. Moses asked those around him, ‘Who took my clothes?’ The people replied, ‘It was the Palestinians…’”

The official from Palestine interrupted, saying, “Wait a minute! There were no Palestinians during the time of Moses!”

“All right,” replied the Israeli Prime Minister. “Now that we’ve got that settled, lets begin our negotiations.”