Power in a business negotiation is the ability of one party to control the resources and benefits of another. Clearly, bargaining power will help determine the outcome of any business negotiation. Power is an exchange—people give something to get something they want. Any negotiator has more bargaining power than he or she thinks. You want to make sure to tip the bargaining power balance in your favor.
Here are the top seven tips that you can use to build your bargaining power:
- Set the stage for getting to yes. Your goal is to make the other party comfortable and content. To help things along provide food (and make sure it is good) and discuss mutual personal interests (sports, films, travel).
- Take copious notes of what is being said and what has been agreed to. These notes will provide a record and therefore legitimize the discussion.
- Dress appropriately. If you are going into a high-level discussion, you should dress accordingly. Similarly, if you want to show that you are not wealthy, don’t break out the designer suit.
- Have support. It’s best to have at least one other person on your side during the negotiation who can answer questions and observe what is going on with the other party.
- Bring back-up material. Anything that supports your position, such as rules and regulations, price lists, data, standards, can be a source of legitimacy and thus, of bargaining power.
- Say less, not more. It is best to keep quiet and listen to the other party than to give away too much or raise the other party’s expectations.
- Be ready to walk away. When you are ready to walk away from negotiation you will also be able to discover the other party’s real bottom line.
Have you used any of these suggestions to increase your bargaining power during a negotiation? If so, what worked particularly well and why? What tips would you add to this list?
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