Understanding Negotiating Power
Success and failure in negotiating is driven by the power dynamic. Who holds more power? How much power? What and when the power is deployed? Negotiating power can come from any sources and takes in many different forms. In general negotiating power can be in the form of tangible resources which called HARD POWER and intangible resources which called SOFT POWER. HARD POWER Hard power is measurable, and this power can come from Dependency : This is where one parties dependent to the other. You're at disadvantage when you're exclusively dependent to your opponent. Example, your opponent maybe provide more than 50% of your revenue or you may only have single supplier Market conditions : Predicted future business could be used to build a circumstances that may work for you or against you. Example, your customer could make high demands based on their performance, market share or limited availability of subtitute products. Knowledge : What you know and what they know