FBO Survival Series - Survival Tip #10: Sharpen Your Negotiation Skills
/By John L. Enticknap and Ron R. Jackson, Aviation Business Strategies Group
Editor’s Note: Meet our bloggers, John and Ron, at the AC-U-KWIK booth No. 1004 at the NBAA S&D Conference in New Orleans, Jan. 14-17. Register to win a free registration fee to the next NATA FBO Success Seminar, March 24 and 25 in Las Vegas, a $650 value. Also, join John and Ron on Jan. 17 at the S&D 10:30 a.m. session on: Get Ready for a New FBO Business Model.
Welcome to the next installment of our continuing AC-U-KWIK FBO Connection Series: FBO Survival. This series focuses on the various strategies and tactics needed to survive the daily rigors of running a successful FBO operation.
"My father said, ‘You must never try to make all the money that's in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won't have many deals.'"
- J. Paul Getty
As we start the new year, it’s never too early to get out the old business tool kit and sharpen a few skills that will help you survive in 2014. The art of negotiation is one skill that we can use every day in running a successful FBO operation.
In a broad sense, negotiating skills can be used in a variety of situations, including dealing with employees, customers, investors, vendors and suppliers; virtually all your stakeholders.
The FBO business is a relationship business and for relationships to be successful, your negotiating style is very important. We believe in win-win negotiations where both parties feel a sense of gain. However, if you are set on negotiating a one-sided win, the result is often a short-term solution.
There are many different styles of negotiating and the style we feel works the best is based on compromise, accommodation and collaboration.
In preparing for a negotiation, here are few things to keep in mind:
- What are your goals?
- What are the goals of your negotiating partner? (Note partner, not adversary)
- Do you have common ground with your partner?
- In what type of environment are the negotiations going to be conducted?
- Are you facing a very competitive partner who wants to win at all costs?
- What is going to be your opening position?
- At what point do you walk away? Or do you have that option?
Knowledge is key to any negotiation. If you are negotiating something major, such as a new lease with the airport authority, you must research your partner and know as much as you can. This includes gathering any personal background information as well as history on prior negotiations.
The FBO and aviation services business is generally a very small community. If your style is confrontational and aggressive, as opposed to a businesslike approach where goals are mutually appreciated, you tend to be less successful in the long run.
In an ideal situation, you will find that the other person wants what you are prepared to trade, and that you are prepared to give what the other person wants. Ultimately, both sides should feel comfortable with the final solution if the agreement is to be considered win-win.
If you can answer yes to the following questions, then your negotiations have been fruitful:
- Have most or all of your goals been met?
- Has your partner met their critical goals also?
- Is your relationship with your negotiating partner good?
- Are the outcomes of the discussions better than other alternatives?
The most sensible outcome is to have ongoing relationships with your negotiating partner. This is particularly important when dealing with a disgruntled customer. As we all know, the aviation business is a small community and if you’re in it for any period of time, you will meet the same people again and again, sometimes in different capacities. Therefore, it is in your best interest to have a reputation as a fair negotiator.
During our upcoming NATA FBO Success Seminar to be held March 24 and 25 in Las Vegas, we will be discussing the major elements of negotiating an airport lease as well as a fuel sales agreement. Please join us for this event. Past attendees say it’s like taking a short course on how to run a more successful FBO.
Tell us what you think—we appreciate your comments and thoughts.
Send us an email to Ron@thejacksongroup.biz or jenticknap@bellsouth.net. Also, learn more about negotiating airport leases, fuel supply agreements and exceptional customer service at our next NATA sponsored FBO Success Seminar to be held March 24 and 25, 2014, in Las Vegas. Click here to register.
About the bloggers:
John Enticknap
John Enticknap founded Aviation Business Strategies Group in 2006 following a distinguished career in aviation fueling and FBO management, including President of Mercury Air Centers network of 21 FBO locations. He is an ATP and CFI rated pilot with more than 7,800 flight hours and is the author of “10 Steps to Building a Profitable FBO”. John developed NATA’s acclaimed FBO Success Seminar Series and writes an industry blog for AcUKwikAlert.com titled: The FBO Connection.
Ron Jackson
Ron Jackson is Co-Founder of Aviation Business Strategies Group and President of The Jackson Group, a PR agency specializing in FBO marketing and CSR training. He has held management positions with Cessna Aircraft and Bozell Advertising and is the author of “Mission Marketing: Creating Brand Value” and co-author of “Don’t Forget the Cheese!” the ultimate FBO Customer Service Experience. Ron co-developed NATA’s acclaimed FBO Success Seminar Series and writes an industry blog for AcUKwikAlert.com titled: The FBO Connection.