Many industries are finding things tough right now. Pharma, tech, insurance, consumer, retail.

Daily, I hear a similar tune.

"The market has shifted."
“Things are tough out there.”
“We don’t seem to have much bargaining power.” 
“Our deals just aren’t as profitable as they used to be.”

Unfortunately, there is no magic wand when it comes to fixing lost leverage. Negotiation power, unlike Harry Potter’s powers, doesn’t just reappear with the swish of a wand.

It often takes time and effort to shift back to a more favourable position.

But the good news is, it can be done. And moreover, it’s likely your power hasn’t disappeared completely, rather just been redistributed, perhaps further than you’d like.

When times are tough, relationship leverage and customer loyalty can be the first to break. The customer you always relied upon now has new needs, which likely include better terms and better pricing.

And because most have built their negotiation position on only one or two sources of power rather than multiple, when the market shifts, their position weakens.

So what can be done?

More than most might think. Yes, there are things outside of your control. That’s unquestionable. But there are plenty within it. And that’s where to focus your attention and energy.

Let’s look at the image below. A tool I created to help my delegates focus on the right levers, and begin to work towards gaining their edge back.

Alternatives

The person willing to walk away tends to get the better deal.

What other options have you got outside of the existing deal you’re working on? I find if you really spend time on this, and bring in key decision makers within your team, you will uncover more alternatives than you initially think.

If after that you still have none, then get busy developing more, as early as you can.

Information

Negotiation is an information game. And sometimes, you might gather a critical insight that changes the game in your favour.

• Maybe your counterpart is under time pressure.

• Maybe they need you more than you think.

• Maybe your competition are underperforming.

Whatever it is, do your best to keep your ears close to the ground, and keep testing your assumptions.

Time

When deadlines approach, so too does pressure. But you want the time pressure to be theirs, not yours.

Revisit your own internal deadlines and reassess whether they are real or self-imposed. Perhaps the department who needs confirmation by the end of the month will survive another month or two.

Equally, work hard to work out how you can use their time pressures to your advantage. Someone always has some form of deadline that matters when negotiating, and once you find it, think about how it can give you an edge as you move towards it.

Dependency

The more they need you, the more leverage you’ll have.

Get clear on what you offer them, importantly that others can’t, and be able to communicate it clearly to the right people.

• Maybe it’s your expertise.

• Or your reputation.

• Perhaps you provide less risk or greater value than your competitors.

Whatever your “thing” is, if they can’t do without it, you’re on to a winner.

Relationships

You may have none of the levers above, but they really like you. And they trust you. And trust and likability go a long way.

But deep relationships take time to build, so make sure you’re constantly committed to developing these relationships.

Perception

The perception of power can matter just as much as actual power.

If the other side believes you have options, believes you are in demand, or believes you are willing to walk away, it changes how they behave.

So think about what signals you’re sending, and whether they reinforce strength or weaken your position.

Do you appear desperate, or do you appear in control and prepared? Sometimes the illusion is more powerful than reality.

These levers rarely work in isolation. But together they give you options and flexibility. And importantly, they give you a way to get your mojo back.

And while there is no magic wand, there are always levers. And those who are proactive in pulling them are far more likely to come out ahead.

To see how much power you have in your next negotiation, take this 5 minute diagnostic which assesses your negotiation power across these 6 critical dimensions.

Go well,
Steve