By Brian Everett, ABC, Chief Executive Officer, TMSA
Negotiation is nothing more than a conversation through which two or more parties are seeking to formulate and settle upon a mutually beneficial agreement - whether this agreement is a multi-million dollar freight contract or simply at which restaurant to meet for dinner at the next TMSA Logistics Marketing & Sales Leadership Conference. Our personal and professional lives are riddled with negotiations - across a boardroom table, the kitchen table, and everywhere in-between.
Of course, there are many strategies you can implement to improve your chances of emerging victorious in a negotiation. Most critical among these is asking the right questions—those that will give you answers that facilitate a win for all parties involved. With this in mind, here are five “must ask” questions in any negotiation to best ensure a desirable outcome:
1. "Would you explain the reasons for your position?" If you can’t clearly understand the other party’s reasoning through conversations, then directly ask them to articulate their rationale for what they are offering or seeking. Once you know their thought process and justifications, rather than just the outcome they desire, you can more effectively adjust your strategy and response to coincide with their position.
2. "Is there any reason you can’t?" It's an excellent question to ask when you know the other party is avoiding or rejecting your offer for no legitimate reason. Oftentimes some folks make shallow excuses for why they choose not to do something or shoot down an idea with short-sighted objections. Most often when the question is asked this way, the other party has a hard time coming up with legitimate reasons that effectually negate your argument or offer.
3. "Why do you think this is a equitable, reasonable term or condition?" A fair and reasonable term or condition - such as a freight rate, proposal or provision, can be defined as what’s justifiable under competitive market conditions. "Equitable" implies a proper balance of conflicting or divided interests. Reasonable means not too extreme or excessive. So a fair and reasonable term or condition is one that is balanced between all parties and somewhat moderate. If you're concerned that an offer is not reasonable, conduct some due diligence to research comparables. Then ask the other party in the negotiation this question to encourage them to defend the reasonableness of their requirement. This will help assure you are getting the best deal possible.
4. "Why is that point or provision important?" It critical to understand the significance of a specific point or provision - and this can even result in an adjustment of your own position. The response from the other side will enable you to refine your strategy based on their critical priorities and values. Understanding, acknowledging and validating the significance of the other party’s requests can help you recalibrate your approach and create more of a team atmosphere or affinity that quickly builds a level of trust.
5. "What part of my proposal gives you the most concern?" This last question can apply to a large contract negotiation, a job offer, or handling an issue with a team member. Breaking offer down into individual points will make it easier to take things in small bite-size pieces rather than one large chunk of information that may cause push-back. Negotiating a proposal point-by-point, particularly highlighting specific areas of top concern, enables all parties to come to small agreements that may not otherwise have been reached if you discussed the arrangement as a whole. Dealing directly with the problems for the other side - from most to least important to the other side—shows you care. This can get you past those sticking points and greatly expedite the negotiation entire process.
In any meaningful negotiation, direct communication with these kinds of open-ended questions is critical. People often don’t ask these types of questions because they either fear rejection or want to avoid how they will be perceived. Asking just these five questions will help you to ensure that the agreement you reach is fair and reasonable for all involved.
