How Informational Power Shapes Negotiation Success

In negotiations, information isn’t just helpful—it’s power. 

Whether you're managing multimillion-dollar supplier agreements or navigating internal challenges, your ability to gain, protect, and strategically use information can determine the outcome.

Sales and procurement professionals often face scenarios where they believe that the other party holds all the cards. 

But in truth, the negotiator with the clearest picture—of facts, figures, motivations, and hidden constraints—often holds the advantage. This is where informational power comes into play.

In this article, you’ll discover how to sharpen your edge by mastering the art of information management. 

Let’s examine how uncovering the right details—and knowing what to hold back—can lead to better decisions, stronger relationships, and more profitable deals.

Key Takeaways

• Informational power is a critical, strategic advantage in procurement and sales negotiations.
• RED BEAR’s “Manage Information Skillfully” principle emphasizes uncovering insights, using data for leverage, and protecting sensitive information.
• Buyers and sellers must use intentional strategies to ask the right questions, respond ethically, and influence perception through framing and anchoring.
• High-performing negotiation teams proactively shape conversations, reduce risk, and secure more valuable, balanced agreements.

What Is Informational Power?

Informational power is the strategic advantage gained by knowing what matters most in a negotiation—whether that's pricing benchmarks, internal deadlines, stakeholder motivations, or the true costs behind a supplier’s proposal. 

In procurement and sales negotiations, it’s not just about having more information, but about having the right information.

At its core, informational power is built on three abilities: uncovering relevant insights, leveraging them at the right moments, and protecting sensitive knowledge that could weaken your position if prematurely disclosed. It’s about using what you know to influence outcomes without overplaying your hand.

Within the RED BEAR negotiation methodology, we refer to this as managing information skillfully. In essence, expert negotiators ask significantly more questions, talk less, and intentionally plan how and when to reveal information. They recognize that information flows in both directions—and that control of this flow is critical to shaping the negotiation environment.

Informational power (along with every other source of negotiation power) isn’t just tactical—it’s perceptual. The party that appears more informed often commands greater credibility and confidence. That perception alone can shift the balance of power at the table, creating space to shape terms, challenge assumptions, and guide the discussion toward favorable outcomes.

Why Does Informational Power Matter During a Negotiation?

In any negotiation, the party with the clearest understanding of the facts, motivations, and risks tends to dictate the terms. 

Informational power enhances your leverage—not by force, but by insight. It allows you to steer conversations, counter demands, and make confident decisions without being reactive.

From a procurement standpoint, informational power supports smarter trade-offs. For example, knowing a supplier’s cost drivers or financial quarter-end pressures can help a buyer time a request for concessions more effectively. 

Conversely, sellers who understand a client’s internal approval process or budget constraints can shape proposals that anticipate objections and close deals faster.

RED BEAR’s research has shown that high-performing negotiators consistently plan the flow of information as part of their pre-negotiation strategy. Rather than improvising, they identify key questions to ask, decide what data points to use for leverage, and prepare responses to protect sensitive details.

And the evidence backs this up. 

According to a study published by McKinsey & Company, companies that effectively use data-driven B2B sales-growth engines report above-market growth and EBITDA increases in the range of 15 to 25 percent. 

These organizations systematically empower their sales teams to derive impact from insights, improving value-based opportunity prioritization and frontline delivery. 

These teams aren’t just more persuasive—they’re more prepared, which enhances their credibility and reduces the risk of costly concessions.

Perhaps most critically, informational power influences perception. When the other side believes you understand the full picture, they’re more likely to respect your terms, offer valuable concessions, or rethink their assumptions. That perception of control—when built ethically and skillfully—can shift the entire tenor of the negotiation.

Three Ways To Leverage Informational Power

Informational power isn’t just about what you know—it’s about how you use it. 

At RED BEAR, we emphasize three critical tactics that allow negotiators to fully harness this form of power: uncovering, leveraging, and protecting information. 

Each is a deliberate act, not a reactive habit. Mastering these can dramatically shift the dynamics of any negotiation.

1. Uncover: Ask the Right Questions Early and Often

Top negotiators aren’t the best talkers—they’re the best listeners. Our research shows that expert negotiators ask more than twice as many questions as average performers. This isn’t accidental. It’s the result of planned, purposeful inquiry.

Effective questioning helps reveal:

• The other party’s underlying needs, not just surface wants
• Their flexibility on timing, budget, or scope
• Pressures they face internally (like quarterly targets or inventory concerns)

For example, buyers who ask deeper, more thoughtful questions, like “Why is this timeline critical?” or “What alternatives have you considered?” uncover decision-making dynamics that lead to more profitable outcomes.

2. Leverage: Use Strategic Data to Influence Outcomes

Once you uncover valuable insights, the next step is to use them, strategically. 

Leverage isn’t about overwhelming the other party with information; it’s about choosing high-impact data that strengthens your proposal or discredits theirs without triggering defensiveness.

This could include:

• Competitive pricing benchmarks
• Supplier cost breakdowns
• Internal usage trends or spend forecasts
  
  

For example, we worked with a sourcing executive armed with cost models who was able to challenge a supplier’s price point—and immediately secured a 20% reduction. 

The key? Preparation and precision in using informational leverage.

3. Protect: Know What to Hold Back (and When)

Not all information is meant to be shared. In fact, oversharing can be just as damaging as having too little data. 

We warn negotiators against disclosing internal deadlines, walkaway points, or budget constraints too early in a negotiation.

For example, we worked with a leading technology company whose technical team shared their technology roadmap too freely with a supplier during an early-stage discussion. 

The supplier used that information to strengthen their position—while the company gained no real advantage in return.

To keep the right cards close to your vest, negotiators must prepare in advance. Consider:

• What sensitive data will you never reveal?
• Which tough questions should you deflect—ethically and skillfully?
• How will you frame your answers to maintain credibility without weakening your stance?
  
  

Informational discipline is as critical as informational insight.

Keep in mind that protecting information doesn’t mean deception. It means timing disclosures with intent, ensuring transparency serves strategic—not reactive—purposes.

​Informational Power in Action: Procurement and Sales Perspectives

Informational power is not a one-size-fits-all advantage—it looks different depending on your role in the negotiation. 

Whether you're sitting in procurement or across the table in sales, how you collect, interpret, and apply information can be the difference between a routine transaction and a strategic win.

Procurement: Using Information to Control the Frame

Procurement professionals often operate in a world where suppliers come armed with polished presentations, confident projections, and assertive sales reps. The best buyers don’t just respond—they reframe the discussion.

That means:

• Asking pointed questions to uncover cost drivers, not just list prices
• Identifying and addressing supplier motivations (e.g., revenue recognition, market entry)
• Validating claims through independent benchmarking and modeling

For example, we’ve found that buyers who asked clarifying questions and challenged assumptions were able to shift conversations from generic discount requests to deeper value discussions—revealing opportunities for “elegant negotiables” that benefited both sides.

Sales: Balancing Transparency with Strategic Discretion

Sales professionals, by contrast, often feel pressure to respond quickly, share generously, and remove friction to close the deal. But too much openness, especially early on, can erode their negotiating position.

For example, sellers who prematurely reveal pricing flexibility or product limitations may themselves cornered, while those who ask about the buyer’s procurement cycle, key influencers, or alternative options could better shape the deal on their terms.

The best sales negotiators:

• Ask the right questions to get beyond surface objections
• Time their concessions strategically
• Manage the perception of value by anchoring discussions early

No matter which side you're on, the power of information lies not in possession, but in intentionality. 

Being deliberate about what you ask, when you ask, how you listen, and what you choose to share is what separates high-performers from average negotiators.

Best Practices for Using Information to Your Advantage In Any Negotiation 

To negotiate from a position of strength, it’s not enough to have information—you must know how to use it with precision, timing, and ethical clarity.

Prepare, Prepare, Prepare 

Start by building a checklist before every negotiation. Preparation is your first (and best) tool. Use this list to clarify:

• What information you need from the other party (and how you’ll get it)
• What information you can share to build trust and frame the deal
• What information you must protect—including internal constraints, deadlines, or strategic priorities

The best negotiators build systems that support consistency. These tools ensure that each negotiation is an intentional act, not a reactive conversation.

Learn To Ask (And Answer) Good Questions

It’s also important to ask smart, thoughtful questions that reveal more than yes/no answers ever could. 

Think things like:

“How did you arrive at that figure?”

“What are the internal hurdles to approval on your side?"

“What would make this agreement more valuable to your stakeholders?”

Using more emotionally intelligent questions often separates average negotiators from elite performers.

Asking questions is one thing, answering them is quite another. 

You’ll inevitably face uncomfortable or revealing questions. The goal isn’t to dodge, but to respond intentionally. Instead of saying, “We’re flexible on pricing,” consider:

“We’re committed to building value into the deal—what does that look like from your side?”

Or

“Our pricing reflects multiple levers, not just cost—what parts of this package are most important to you?”

These responses shift focus back onto shared value, without conceding ground prematurely.

Equip Your Team with Strategic Information Skills

In negotiation, what you know—and how you use it—can be the ultimate differentiator. 

Informational power allows professionals to shape conversations, uncover deeper value, and navigate complexity with greater confidence. 

But this power doesn’t come from luck or instinct. It comes from preparation, discipline, and a clear strategy for uncovering, protecting, and leveraging insights.

For procurement leaders and sales professionals alike, the ability to manage information with skill is no longer optional—it’s essential. It influences how your team is perceived, how agreements are structured, and whether those agreements meet both tactical and strategic goals.

At RED BEAR, we equip teams to do more than just negotiate—we train them to lead with insight. Our methodologies help clients apply these information principles systematically across supplier relationships, internal alignment efforts, and global dealmaking environments.

Our training programs equip teams with the tools and behaviors to manage information like a source of strength—from real-time questioning techniques to long-cycle planning. 

Contact RED BEAR to run a Negotiation Planning Workshop and build this skill into your team’s daily rhythm.