Power in negotiation is often misunderstood.
While negotiation professionals know it's there, they often don’t understand the full range and strength of their power.
In a high-stakes negotiation, it’s easy to default to more traditional symbols of formal authority—job titles, deal size, or corporate hierarchy.
But there’s another type of power that’s equally (if not more) important to understand: the power of the situation, or what we call situational power.
The ability to assess and apply situational power in real time separates high-performers from those who leave value on the table.
Let’s explore where this type of power comes from—and how to recognize it in your own negotiations.
WHAT IS SITUATIONAL POWER?
The power of the situation is the power that a negotiator realizes from all the factors (positive or negative) present during the negotiation.
This source of power particularly calls for keen observation and critical thinking to process all the factors at play and use them to your advantage.
We help negotiators understand that power is not static. It fluctuates based on timing, alternatives, urgency, stakeholder alignment, and information control.
This is why two people in similar roles can experience very different negotiation outcomes—because one understands how to read the situation, and the other does not.
THE SOCIAL PSYCHOLOGY BEHIND SITUATIONAL POWER
The phrase “power of the situation” is rooted in social psychology, where it describes how behavior is shaped more by context than individual traits.
Famous studies—like the Stanford Prison Experiment—have shown that people’s actions can shift dramatically based on the roles, norms, and expectations embedded in a specific environment.
For negotiators, this means the situation often dictates behavior more than title or intent. Recognizing that power comes from context—not just personality or authority—is key to influencing outcomes.
WHERE SITUATIONAL POWER COMES FROM—AND HOW TO RECOGNIZE IT
The power of the situation doesn’t come from a job title or organizational chart.
It comes from the moment you’re in, and your ability to recognize the factors that shape and influence right now.
Over the years, we’ve identified tangible and intangible levers that impact negotiations. Here are a few of the most commonly overlooked:
- Time Pressure: The side under more time stress is usually at a disadvantage. But that disadvantage is only real if the other side recognizes it—and leverages it with discipline.
- Credible Alternatives: Walking in with a solid “plan B” needs to be part of your plan A. It’s important to know what actions you could take if you can’t reach an agreement. It’s even better if you can get this information about the other person. You can leverage your “plan B” power by learning about the other party’s options.
- Information: The person that asks better questions and protects critical data typically controls the flow of the negotiation. Your situational power increases when you know more about their constraints than they know about yours.
- Internal Alignment: Power rises when your internal stakeholders are unified. When you speak with one voice, the other person can’t exploit internal divisions.
We’ve seen this play out time and time again.
For example, we were training a procurement team for a leading tech manufacturer. One of the procurement managers on the team faced a supplier who claimed that price was non-negotiable.
But that procurement professional didn’t accept this at face value.
Instead, they prepared a detailed cost model that mapped the supplier’s likely overhead and margin assumptions.
When they revealed this information mid-negotiation, the supplier quickly shifted and asked, “What price do you need?”
The manager’s understanding of the situation—not authority—shifted the outcome.
Recognizing situational power begins with preparation, but it’s sustained through real-time awareness.
Great negotiators observe not just what’s said—but when, why, and under what pressure.
SITUATIONAL POWER FOR PROCUREMENT LEADERS AND TEAMS
Procurement professionals often find themselves negotiating with suppliers who appear to hold more leverage, especially those with dominant market positions, unique technical capabilities, or long-standing relationships with internal stakeholders.
But appearance isn’t reality.
Situational power, when understood and applied effectively, allows procurement to hold firm, even when formal authority feels outmatched.
In our experience training procurement teams, the most common mistake is focusing too narrowly on price.
While cost control is a critical objective, it's just one part of the broader negotiation. High-performing procurement leaders use the power of the situation to influence the negotiation environment beyond the number on the contract.
Here’s how they do it:
- They understand supplier pressure: Just because a supplier isn’t openly stressed doesn’t mean they’re in control. Quota targets, expiring capacity, or internal politics can place intense demands on them. Procurement professionals who dig for this information—and time their asks accordingly—shift the power dynamic in their favor.
- They show their math: As seen in the earlier tech manufacturing case, procurement professionals who prepare well—using cost models, benchmarks, or competitive intel—can challenge supplier assumptions in a way that changes the conversation. When you can speak to their cost structure as well as your own needs, you earn respect and influence.
- They align internally: Procurement loses leverage when finance, operations, or engineering sends mixed signals to the supplier. But when internal stakeholders are on the same page—backed by a shared walkaway position and negotiation objectives—suppliers sense unity and take the conversation more seriously.
- They reframe urgency: When suppliers push with statements like “we need a decision by end of week,” procurement professionals with strong situational awareness don’t rush. Instead, they reframe with calm confidence: “If timing is critical, let's talk about what flexibility looks like on your side, too.” This subtle shift resets the tempo and reclaims control.
Here’s the reality: power can be built.
It’s not just something you’re given—it’s something you create through preparation, alignment, and strategic engagement with the moment. Procurement leaders who understand this consistently outperform those who rely on policies or past contracts alone.
SITUATIONAL POWER FOR SALES LEADERS AND TEAMS
For sales professionals, the negotiation table can often feel like a power imbalance. Customers seem to hold all the cards—budgets, timelines, competing quotes, and the ability to say no.
But this perception masks a critical truth: most salespeople underestimate their power.
Situational power allows sellers to move past the surface-level dynamic and tap into deeper, often hidden, sources of influence.
The key?
Learning to recognize the pressures your customer is under—and using the situation itself as a lever to influence outcomes.
Here’s how RED BEAR-trained sales leaders and reps activate situational power in real deals:
- They observe customer constraints—not just their own: Sellers often focus so much on meeting quotas or internal deadlines that they forget their customer may be under similar (or greater) pressure. A customer facing procurement deadlines, internal stakeholder resistance, or operational gaps is just as vulnerable to time and perception as the seller.
- They use information intentionally: Managing information skillfully is a power move. Salespeople who ask the right questions—and hold back key concessions until they gather what they need—gain control of the narrative. For example, deferring price discussions until value is clearly understood keeps the buyer from anchoring too early.
- They bring structure to complexity: Sales professionals who enter negotiations with a clear walkaway point, a planned concession strategy, and a set of conditional proposals are more confident—and more credible. Planning creates control, and control builds perceived power.
- They position creatively under pressure: Sellers who set high targets and frame their product or service advantageously are more likely to expand the “range of reason” for pricing and terms.
The power of the situation isn’t about bravado. It’s about perspective. Sellers who internalize this principle shift from reactive to proactive and consistently negotiate stronger, more profitable agreements.
HOW TO ACTIVATE SITUATIONAL POWER
Understanding the power of the situation is one thing.
Using it effectively—at the right time, in the right way—is where strong negotiators separate from the rest.
Here’s how high-performing negotiators move from awareness to activation:
START WITH STRUCTURED PREPARATION
Before any negotiation, RED BEAR-trained professionals use planning tools like the Negotiation Planner to map out sources of power—including situational ones.
These include:
- What time constraints is the other person?
- What internal dynamics are at play?
- What do we know about their plan B?
- What information should we hold or reveal?
This process ensures negotiators walk in already attuned to where the moment could shift and what levers they might need to pull.
WATCH FOR THE WINDOW—AND TIME YOUR MOVES
Situational power often comes down to timing. That doesn’t mean waiting passively. It means reading the moment with precision.
One RED BEAR participant—part of a sales team negotiating a renewal with a major restaurant chain—realized the customer would incur significant switching costs if they changed vendors.
But rather than lead with that insight, the team waited. They let the buyer anchor around price and pressed just enough to surface hesitation.
Only then did they introduce the operational consequences of switching.
The impact?
They held pricing and protected margin.
The power of the situation is about knowing when the moment is right to reveal, reframe, or reinforce.
USE BEHAVIOR-BASED NEGOTIATION TECHNIQUES THAT SIGNAL STRENGTH
There are tried and true negotiation behaviors that will help you turn situational awareness into action.
That starts with asking the right questions. Doing so can help you draw out hidden constraints or motivations, like “What’s driving the shift in timeline?”. Once the other party answers, it’s always a good idea to verbally confirm your understanding of what they said and position observations as neutral facts, not assumptions.
When you’re making trades or concessions, only do so in exchange for something meaningful to you, like timeline, payment terms, renewal cycles, etc.
It’s also important to offer creative options that test the other party’s flexibility without committing prematurely.
These behaviors allow negotiators to recalibrate the conversation in real time—even when power feels lopsided.
Situational power doesn’t shout. It whispers. But if you’re prepared, observant, and intentional, that whisper is loud enough to shift the entire negotiation.
MASTER YOUR MOMENT
Here’s a quick recap of what we learned about leveraging situational power.
- Map your situation (tools like our negotiation planner can really help here)
- Observe pressure points in real time
- Use RED BEAR behavioral tools to shift dynamics
And remember, power can be created, not just inherited.
Situational power isn’t about bluffing, coercion, or positional advantage. It’s about seeing clearly—then acting strategically.
At RED BEAR, we’ve seen time and again how the negotiators who succeed are those who know how to assess the moment, adjust their strategy, and respond with confidence.
Whether you’re in procurement holding firm against supplier pressure or in sales facing last-minute buyer demands, situational power is an important tool in your arsenal.
This article is just the beginning. In future installments, we’ll explore other forms of negotiation power—such as planning power, relationship power, and personal power—and how each can be activated for better business results.
Want to discover and develop your negotiation power?
Contact RED BEAR today to explore our planning tools, workshop options, and reinforcement solutions. We’ll help you assess your power, sharpen your strategy, and transform how you negotiate.
