The Uses of Power in Negotiating
YOU ALMOST ALWAYS have more power in a negotiation than you think you have. Even when you feel that the other person has all the power, it may be that you have something that he wants, or you can find something that he wants that will swing the balance of power back in your favor.
There are several ways that you can increase your power in a negotiation, including through preparation, authority, knowledge of the other party, empathy, rewarding/punishing, and investment.
The Power of Preparation
The more thoroughly prepared and knowledgeable you are when you go into a negotiation, the greater power you will have. Do your homework. Robert Ringer, a skilled negotiator, talks about taking an accountant, lawyer, and a business manager to a negotiation with a single real estate owner. This created the perception of overwhelming competence and knowledge of the transaction under discussion.
The Power of Authority
Making it clear that you have the authority to buy or not buy—to make or not make a buying decision—gives you power. Also, when you make it clear that you are knowledgeable in this field, and that you are quite clear and experienced about exactly what the price, terms, and conditions should be, it often intimidates the other person into giving you a better deal.
The Power of Knowledge of the Needs of the Other Party
The more you know about the situation of the other party, the greater strength you have in a negotiation. If you discover that the other person has a pressing need for a product or service that you can offer, or that the other company has serious financial problems and needs capital or credit, you are in a stronger position to negotiate an excellent deal.
The Power of Empathy or Identification
This a power used by top negotiators in almost every area. The more time you take to establish a warm relationship with the other person, the more likely your opponent will be relaxed and open to negotiating with you on better terms.
The Power of Rewarding and Punishing
This is an essential power that you can and should develop in a negotiation. When you have the ability to confer rewards or benefits on someone, or to withhold rewards and benefits, they are far more likely to do business with you. They will want to negotiate with you.
The Power of Investment
This refers to the amount of time and effort that you or the other person has spent in this negotiation. If you have only spent five minutes, then there is little investment on your part. But if you have spent five days, weeks, or months over time working toward an agreement, you have made a substantial investment, and it makes a definite impression on the other party. The greater the investment of the other party, or yourself, the greater power you have in the negotiation.
