Power: You’ve Got More Than You Think

At one of our recent negotiation skills seminars, Dave, a sales representative, shared this concern: “My boss told me I was selling our products too cheaply to one of my clients, but I’m afraid if I raise the price, this client will take her business to a competitor.” What Dave was really saying was, “I am not the one with the power in this relationship, so what can I do?”

Most of us tend to underestimate the number of negotiations we participate in and thus don’t appreciate our expertise as negotiators. We lack confidence in our ability to successfully negotiate positive outcomes because we perceive that we have limited power and that our counterpart has the advantage in the relationship. The fact is, we usually have far more power than we believe we have. The following tips will help you realize your power potential in a negotiation and focus your expertise on achieving a successful outcome.

1.                  Believe You Have Power

To derive a great outcome from a negotiation, you must first have a deeply held belief that you have the ability to do so, regardless of who your counterpart is or the type of negotiation you are involved in. In the example above, whether Dave truly believes he has a lot of power or truly believes he has no power, he is probably right. In other words, you get what you believe you will get. If you enter a negotiation fearing the worst because you believe your counterpart holds all the cards, your fears will probably be realized.  

A great way to find out what power you have in a relationship is to ask yourself the following question: If I were to call my client right now and tell her I am withdrawing my proposal and am no longer willing to do business with her, what impact, if any, would my action have on her business? If the relationship with you has any impact--positive or negative--on your client’s business, you have more power than you think you have.  

Your mind is your most powerful leverage tool. What you silently say to yourself shows on the outside. Fear, apprehension and self-doubt speak volumes to your counterpart--but so do confidence and self-assurance. Develop a positive focus and harness the energy that comes from that. Clearly envision success and develop a plan that will be the pathway to that success. 

2.                  Maximize Your Alternatives

To increase your power potential, maximize your alternatives. The side with the least commitment to the relationship holds the most power. If you are negotiating for a raise and you already have another job offer, you enter the negotiation with confidence because you know you have little to lose. 

The higher your need is in a negotiation, the lower your power potential is. To gain power, think about all the possible alternatives that might help you achieve your outcome. If Dave has only one client buying his company’s products, he will do anything to avoid losing that client, including making a sale that is not profitable. But if he has several clients who are willing to pay full price for his company’s products, his commitment to a relationship that causes his company to lose money will quickly wane.  

As you prepare for a negotiation, challenge yourself to develop a long list of viable alternatives. The negotiator with the most alternatives holds more power and greater ability to achieve a successful outcome. 

3.                  Uncover Your Counterpart’s Implicit Needs 

Every negotiator has two sets of needs: explicit needs, such as price, quality, quantity, warranty and delivery; and implicit needs, such as personal reputation, credibility, the desire to look good in a boss’s eyes, and the need to win. Counterparts will always tell you specifically about their explicit needs, but very seldom will they reveal the implicit needs that drive their decision-making process. This is the important point: In a negotiation, the implicit needs, not the explicit ones, are what drive a counterpart’s decision. This explains why you can offer a buyer the best price and the best product and still lose that buyer to a competitor.  

Use questions to uncover your counterpart’s implicit needs--those that impact her personally in some way--and then meet those needs. Dave, for example, might inquire, “If I continue to offer you the lowest price for our products but those products fail to meet your quality standards, what impact will that have on your business?”  

4.                  Grow the Pie

Before you consider dividing up the pie, first think about simply making a bigger one. Questioning your counterpart gives you a good idea of what’s important from her perspective. Use this knowledge to propose additional alternatives. Rather than focusing on trading off what’s already on the table, put more possible deal points up for consideration. For example, Dave might tell his client that if she can give him more of her business--by increasing the quantity of products she orders or the frequency of her orders--he might be able to maintain the existing price.  

5.                   Use Strategies and Tactics 

To boost your confidence and power potential, make sure you know how to use sales strategies and tactics. Otherwise your counterparts will use them against you. While there are many different tactics (See The Only Negotiating Guide You’ll Ever Need for 101 of them!), one of the best ways to demonstrate your confidence is to simply say, “Is That Your Best Offer?” and wait for your counterpart to respond. A similar option, “I Don’t Think That Will Work for Me,” is also helpful. For Dave, an effective tactic may be using the strategy of “Facts and Statistics” to demonstrate that his company has the most cost-effective products on the market. Or if his buyer has a soft side, he might try the “Mother Teresa” appeal, saying, “For the last six months, I have been selling you our product below cost. I have come here today to let you know that this has become an issue for me and my company, and I need your help in solving this problem.” 

Almost always, you have more power than you think you have. Following the tips listed above will help you harness your power potential and realize great negotiated outcomes. If all of these strategies fail, try using your ultimate power card, aptly called “These Boots are Made for Walking.” Simply walk away from the negotiation!

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