There is no question that the best negotiators approach bargaining with a win-win attitude. However, that doesn’t mean you have to settle for less to find an acceptable middle ground. Your goal should still be to get the best deal you possibly can. Whether you are negotiating a salary, a business deal, or a purchase, you can use leverage to improve your chances of getting a more favorable outcome. Here are some tips for strengthening your leverage in order to secure what you want.
1. Find out what the other side wants.
Leverage relates to two factors: 1) how much each party needs the deal compared to the other, and 2) the relative value of each party’s best alternative to that deal. The ability to leverage starts with gathering information. You need to find out what the other side’s true needs are as well as their wants and fears. If you can offer something that you know the other party really needs, you have strengthened your leverage.
2. Have a strong backup plan.
Often referred to as a BATNA, or Best Alternative to a Negotiated Agreement, a strong plan B gives you more leverage. You need to consider your alternatives and have a practical BATNA in place. When you have a solid backup plan, you can walk away from the negotiation if needed. This allows you to push for better terms and it lets the other party know that you are not desperate to make the deal.
3. Make yourself look attractive.
Once you have discovered what is most important to the other party, it’s time to showcase what you can offer in order to satisfy those needs. Come prepared with information and statistics that support your position. This may include market data, industry trends, or examples of successful deals you did in the past. This makes you look more credible and also makes your offer look more enticing.
4. Build rapport with the other party.
It goes without saying that people like to do business with other people they like. That’s why it is so important to build relationships and rapport with the other party. People will be more flexible and accommodating when they like you and trust you.
5. Be prepared to walk away.
You should always be prepared to walk away if the deal is not satisfactory. Walking away is a savvy negotiation tactic, and perhaps one of the most powerful forms of leverage. It shows the other party that you are not willing to settle for less than you want and it can increase your bargaining power and potentially force the other party to make concessions.