Sunday, August 5, 2012

The Joy of Negotiating - Stage 2

Welcome

 Stage two of the Process, the Art.
(For Stage one, please see Friday's Post)


 The best negotiators tend to be the best listeners.  The person with the most to say usually has the least to offer, and typically attempts to hide this fact with banter and a hollow pitch.   
  The most important thing to remember is that all negotiations follow these stages in this order.

1. Pre-Negotiation.  "Framing and Setting the Stage"

2. Deadlock, Stalemate and Arrested Development

Now, it is fine to overlap these stages, to take a step back and fine tune the framing you did earlier.  There is much, much, more framing that can be done depending on each particular situation,  however, I would just like to give a general outline here.  The fun in negotiating is that everyone eventually develops their own style and approach that tends to mirror the individuals personalities.

One easy way to remember the stages is "FAT".  Framing. Arrested Development. Transaction.  This is a very interesting stage because it is necessary, a negotiation doesn't exist without it.  We must pause and realize this is happening.  Dead silence, a moan, a sigh... the longer the better!  Don't lose your nerve here, patience, patience,patience...Now,  I prefer the term  "Arrested Development" over stalemate and deadlock.  Stalemate and Deadlock sound unpleasant.  It sounds like an argument, a fight, a disagreement that has no solution.  Arrested Development to me, is more of a long, slow, speed bump to be smoothed over.  This is an issue that can and should be resolved like gentlemen!  Let's pull together, stay friends and find a solution together.  We've come this far.  Well, seems like we have an problem here, I wonder what, if anything we can do? 
Let me talk to... I need to discuss this with...  A Third Party...  This is one of many negotiating strategies to use during this stage, and popular for good reason. 

Now, if you have been following our LinkedIN group, I talked a little about my old boss, Ben.  I started to become fascinated with negotiating while watching Ben in action in my teenage years working part time for a small brokerage and trucking company.  He gave me this advice which has stuck with me and is still sound advice.  He said, "Boy"(with a foghorn leghornish flavor) "I say, Boy, there are three things you never, ever do alone, if you want to survive in this business.  You never drink alone, never talk to a banker alone, and never ever go BARG-nin(negotiating) alone."  I never bothered to ask him about the first two, but the last one about "BARG-nin" is gold.  Now this uncomfortable silence, this arrested development, seems impolite in most every social situation.  Not to a negotiator, this is where its your time to shine.  For brokers 100% of your profit lies in your negotiating skills, for most carriers it's 30%-50%.
During the Arrested Development stage, friendship is forged between you and the broker, if you have framed properly, politely and honestly, you are solving this situation with his load.  And this "situation", not having a reputable carrier on his customers load, is detoriating rapidly hour by hour.         

Why is negotiating and haggling such an unpopular concept and dreaded process in this great nation of ours?  The term "haggling" alone brings to mind nefarious individuals in the back room of a used car lot.  Why does it only exist in certain industries?  It has almost disappeared altogether in the retail industry, is rapidly losing popularity on new and used car lots, the last bastion and haven of the skilled negotiator.  "Boy, I say Boy", it is alive and well in our industry! Our profits are defined by it more and more everyday.  How do you train your planners, dispatchers, brokers?

Don't miss Sunday's Post - A true story on when, how and why negotiating, haggling and "barg-nin" started disappearing from our culture, along with...
Stage  - 3.  Acceptance and Settlement.  A Transaction is Born!

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