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» Distributive Bargaining
» Distributive Bargaining Strategies

Negotiation Leverage

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 What is Leverage?  Increasing your leverage

What is leverage?

Leverage is situational advantage--the ability to HELP or HARM the other party. No matter how hopeless it seems, every party has SOME leverage. (If not, there's no negotiation, simply demand and obedience.) Unlike formal authority and power, leverage can change often during a negotiation.

• Positive leverage: the carrot-- "Here's what I can give you."
• Negative leverage: the stick--"Here's the trouble I can cause you."
• Consistency leverage: "Here's the principle you stand for--now live up to it."

To get a sense of how leverage is playing out, ask yourself:

At this moment, who has the most to lose if there is NO DEAL ?

Increasing Your Leverage

If you have less acknowledged power in a negotiation situation (fewer resources, less knowledge, lower status, less authority, etc.) you have to work harder to find ways to tilt the negotiation in your favor. But there is always *some* aspect of the situation you can turn to your advantage. Remember, if you didn't have any ability to help or harm the other parties, they wouldn't bother negotiating with you.

1. Develop better alternatives so you have less need for a deal or agreement.
2. Reduce your ego needs, or at least your desire to meet them through the other party.
3. Find out what matters to the other party (personal as well as business) and gain control over it.
4. Keep momentum going, give away small concessions and favors.
5. Make it clear what they could lose.
6. Get commitment to decision-making processes that favor your desired outcome.
7. Use threats as last resort and usually if you can and will back them up.
8. Find allies.
9. Reduce your urgency, increase theirs.
10. Negotiate over issues you can speak passionately about.
11. Check your assumptions about their power and yours.
12. Listen. Keep learning. Stay alert!!!!