3 ways to improve your negotiating power

No matter how great a negotiator you are, without leverage you have little chance of success. Power in negotiation is perceived rather than real, so it is important to understand key factors that influence your probability of getting a good deal.

Consider the following factors when preparing for your next negotiation:

1.Who has the bigger time pressure?

Who dictates deadlines in your negotiations; is it you or your counterpart? Your bargaining power is compromised when you put yourself under time pressure, so find strategies to combat this. For example, take a recess and ask for more time and be certain not to reveal your deadlines to the other party.

2. Who has more options?

Being overly dependent on a supplier or customer puts you in a weak position. You'll feel obliged to take a sub-optimal offer because you have no alternatives and if your counterpart knows this, they'll exploit the situation. If you genuinely don't have alternatives, at least create the impression that you do.

3. Who is most happy with the status quo?

Generally speaking, the party most happy with the current situation has more leverage. The party needing to change certain terms of trade may feel under more pressure to get to a deal and will offer concessions more readily. This is particularly relevant for example, when entering into a re-negotiations.

The next time you negotiate, consider these 3 factors to give you more leverage and ultimately greater power.

James Thomas

james@serenpartnership.co.uk