How to negotiate without leverage

Here are my top 7 tips on how to do it:

1. Don’t reveal that you are weak

Some aren’t comfortable with this but remember power is mostly perceived. It’s not an actual physical thing you can measure.

So even if you have a weak BATNA (Best Alternative to a Negotiated Agreement) position, you don’t have to advertise it.

The key is to ensure everyone internally is aligned and to manage communications with suppliers effectively.

2. If your position is very weak, consider relinquishing your power

I’ve done this one on several occasions and it’s surprisingly effective.

You’ll be surprised how much can be gained from just asking somebody to help you.

Instead of trying to leverage power that doesn’t exist (which tends to lead to reciprocation and mirroring), make it clear form the start you do not want to enter an aggressive negotiation.

The best suppliers will understand that if they diminish the relationship when they hold all the cards, the room for the partnership to grow has been stifled.

Work on building trust through openness. It’s surprisingly liberating and cuts out a lot of wasted time and energy.

3. Leverage their weakness

Sometimes we can be so focused on our own weakness, so self-conscious, we forget how the other party might be feeling.

It’s possible for reasons you don’t yet know or understand, that the other party may have a weak BATNA.

Perhaps yours is the sale they desperately need to hit target? Perhaps you offer them a route into a market sector that will uniquely position them for future growth?

When both parties have a weak BATNA, it means the Zone of Potential Agreement is large.

Don’t assume your weakness = their power. The one who fares better is the one who makes the other side’s weakness more salient in the negotiation.

4. Think bigger than the specific negotiation

It may well be that this specific negotiation, perhaps it’s an inflationary price rise where you’ve got nowhere to turn, is one you cannot ‘win’. But see the relationship and the negotiation as a long-term one and it will change your perception.

Perhaps you’re able to take this loss on the basis that it will buy you the time to plan for the next one, to build a contingency and increase your actual power over the long-term relationship.

5. Build Coalitions

I remember a particularly successful coalition when I was Spirits buyer for the co-op. I entered into quite a ground breaking (at the time) coalition with Spa for some of our core volume own label products - Vodka and Whisky.

A couple of compromises were needed of course, but we doubled our volume and ultimately our negotiation power through the coalition.

We also used an e-auction facility at the time (remember them?) to drive a 30% reduction in price. The savings were massive.

6. There’s actually great power in your Weakness

Remember that one of the fundamental principles of power is that the source of it comes from someone having some kind of a hold on you.

It’s the old adage of “push me too hard and you’ll just destroy me, thus you’ll be powerless”.

Again it comes back to the fact that in the Procurement world no decent supplier would want the partnership to feel completely diminished as it offers no room for growth and all future trust would be destroyed.

7. Identify your Distinct Value

It’s often the case that you do actually offer something the other party really wants, the key is to distinguish what that is.

Often a lot can be revealed through discussion, being open but also asking the right questions.

It may well be, for example, that you have a good reputation or a strong brand they are looking to partner with.

I remember when negotiating with Clarks for in store operation services, our volume requirements were relatively small and there were very few good supplier options.

However, the Clarks brand name and the reputation that entailed was of very high value to our preferred supplier.

So, next time you feel you’ve got no leverage, consider any or all of the above. It may well change the game and change the outcome entirely.

And remember, Power is almost entirely perceived. You can’t actual measure or substantiate it.