Negotiating Power

We continue with eight more sources of negotiating power.

9. Rewards

For the power of rewards to work, you have to have something to reward the other side with. Appreciation is sometimes enough to help. Other rewards can be almost anything. "I'll buy lunch if we can settle this issue by noon," might help. Giving away things you didn't need anyhow can work too. I've seen home buyers ask for sentimental personal items in their offer, just to have easy concessions to reward the seller with during negotiations.

10. Punishments

Punishments can include a disapproving glance or more substantial things, like subtle threats of withdrawal when they try to get too much. Threats of punishment work better than actual punishments, unless it is a complex and lengthy negotiation where you need to demonstrate that you really will follow through on your threats.

Threats should be subtle, non-personal, and used in conjunction with rewards. Let's assume you have an asphalt company, and are negotiating for a large parking lot job. The other side hints you should have more insurance coverage. You might say,"I can assure you we have enough, but if you need more we could start the pricing discussion all over to include that cost (threat of punishment). Otherwise we can settle the price for the primary job now, and guarantee it (the reward).

11. Persistence

Isn't this the secret (or not so secret) power for success in most areas of life? Harlon Sanders got over 900 "noes" before one restaurant bought his Kentucky Fried Chicken. Then he made millions. He didn't necessarily work harder than you or I, but he worked harder on one thing.

Persist in asking for the things that are most important to you in a negotiation. Consider children, who think less about the effort of asking ten times than they do about the possibility of a "yes" on the next try. Unlike how children do it though, you should continually change your approach. A new way of asking can often get you that "yes."

12. Persuasion

Learn how to persuade people and you will be a better negotiator. Obvious, perhaps, but putting it into action is often overlooked. Don't overlook the fact that the other negotiator said "That's not ideal" ten times. Notice it and use it by saying,"I think you'll see that this is the ideal solution to that problem."

There are many ways to persuade people. You need to learn at least a few good techniques if you are to be an effective negotiator. This is especially true for those of us that don't have much "natural" talent in persuasion.

13. Attitude

Your attitude can be contagious, so make it a positive one. It also effects your own thought processes. If you enter into a negotiation with the attitude that you'll find a way to get what you want, your mind will work on more than one level to find ways to make that happen.

You also want to understand and influence the attitudes on the other side. If they are not hopeful, ask them to tell you what a good resolution would be, and what it would do for them. The process of describing a good outcome and it's benefits can turn around the attitude of even the gloomiest people. Get excited along with them, and say something like, "Well I think we can make that happen."

14. Knowing Their Needs

If you really understand what the other side needs, and you can give it to them, you have negotiating power. Get this information as early in the process as possible. Build rapport and commitments on minor points first, then let them slowly get what they really need as you get what you need.

15. Investment

Time, effort, money and reputation are some of the things that are invested in a negotiation. Nobody likes to lose what they invest, and using that fact gives you power. For example, if you are buying a car, you might want to spend an hour with the salesman discussing the extras. Only then should you make your low offer. He is much less likely to walk away than if you just made the offer five minutes after you got there.

The other side decides what they want to invest into a negotiation, whether it is time, trouble or money. You decide when to reveal your needs, demands or requests. If you can, wait until they have made some investment.

16. Not Caring

She (or he) who cares least has the most power in a negotiation. I was once selling a piece of land, and the buyer drove a long way to meet with me. One of the first things she said was, "The price seems kind of high. Why are you asking so much?" I honestly answered, "I guess because it's such a beautiful property that I really don't care if I sell it or not." She paid full price.

The appearance of not being too concerned or anxious will help a lot. The most power, however, is in truly not needing to worry about the deal too much. To that end, try to line up other options beforehand. You may even want to mention these options during the negotiations.

Earlier in the book we looked at the negotiating power that comes from using time and information. Add those to the list here and you'll have a powerful negotiation arsenal to say the least.

Continues here... Negotiating Strategies - Time for some specifics...