How Informational Power Shapes Negotiation Success
In negotiations, information isn’t just helpful—it’s power.
5 min read
RED BEAR
:
May 28, 2025 9:00:00 AM
Ask any seasoned negotiator, and they’ll tell you: the most surprising moments don’t come from tough terms or aggressive tactics—they come from misreading the situation.
It happens all the time. Professionals who’ve led dozens (or hundreds) of negotiations suddenly find themselves off balance, reacting instead of leading.
We call this the misjudgment of situational power—when a negotiator fails to accurately read the cues, constraints, and context that define the moment.
And the consequences? Missed opportunities, unnecessary concessions, and deals that fall short of what was possible.
Here are the most common ways even seasoned professionals misjudge situational power—and how to avoid them.
It’s easy to assume the person with the biggest title or budget holds the most power. But situational power lives in the moment, not the org chart.
Sales professionals often defer to senior procurement officers, assuming authority equals influence. Procurement professionals may back down from global suppliers, believing scale equals leverage. But situational power shifts based on alternatives, timing, urgency, and internal dynamics.
Smart negotiators ask, “What’s happening right now that gives me leverage?”—not “Who’s higher on the ladder?”
Here’s a hypothetical example:
A mid-level procurement manager was negotiating with a well-known software vendor. The sales rep emphasized that the deal had already been approved “at the VP level” and framed all terms as fixed.
The procurement lead nearly backed down—until she learned that the vendor’s quarter-end was approaching and they hadn’t yet hit their numbers. By recognizing the pressure point, she asked for—and secured—an extended service term at no additional cost.
Lesson: Job titles might sound impressive, but deadlines, targets, and urgency define real power in the moment.
Aggressive deadlines. Emotional outbursts. Sudden pricing demands. These behaviors often feel like dominance—but more often, they’re stress signals.
We train professionals not to react impulsively. Instead, they pause and ask clarifying questions:
The goal is to diagnose pressure, not respond to it. While it’s important to be confident and assertive at the negotiation table, you must always do so within the “range of tolerance” of the other party and avoid pushing the boundary so far that it threatens the relationship.
Let’s look at a fictional example:
During contract renewal talks, a buyer declared, “If you can’t match this price, we’re going with your competitor.” The seller hesitated, assuming the deal was lost.
But his RED BEAR training kicked in—he calmly asked, “What about our performance or service would you be giving up with that switch?” The buyer softened, admitting the competitor had issues with implementation. The threat was pressure, not reality.
Lesson: Overly aggressive language doesn’t always signal real leverage—it often masks deeper concerns.
Situational power reveals itself in subtle shifts—delayed responses, vague directives, or signs of misalignment between stakeholders.
For example, we train procurement teams to listen for disconnects: if engineering and finance aren’t aligned on vendor expectations, it creates internal ambiguity. That’s a situational advantage—if you recognize it.
Similarly, when the other party suddenly pushes for a “quick decision,” that’s not a cue to speed up. It’s a flag to slow down and gather more context.
In a hypothetical situation:
A seller noticed a sudden increase in meeting requests from the buyer's team and inconsistent feedback from different departments. Instead of assuming the deal was off track, he saw an opportunity.
By asking questions, he uncovered that the buyer’s operations lead was pushing for faster onboarding due to an internal compliance audit. This insight let the seller reframe his offer around implementation support, and he closed the deal without a price concession.
Lesson: Misalignment and urgency are often hidden power cues, not distractions.
Preparation is essential. But negotiation success isn’t about how much you know—it’s about how well you observe and adapt.
Sales and procurement professionals often come in loaded with benchmarks, contracts, and pricing history. But in the room (or on the call), things shift. That’s why we teach professionals to speak less, ask more, and interpret the answers carefully.
Expert negotiators listen for tension, timing, tone—and pivot accordingly.
Here’s how this could play out in a hypothetical example:
A procurement analyst walked into a supplier negotiation armed with a 30-page benchmark report and assumed that was enough.
But when the supplier casually mentioned a recent capacity constraint in their facility, the analyst didn’t follow up.
A colleague later asked open questions and learned that the supplier was actually at risk of losing a major contract. That insight changed their leverage and led to better payment terms.
Lesson: Data provides context, but insight provides control. Observation and curiosity unlock situational power.
Many negotiators try to eliminate tension the moment it arises. But we know that productive tension is a sign of progress, not danger.
When both sides care deeply about the outcome, tension rises. It’s normal. In fact, it often precedes a breakthrough. The mistake? Confusing that discomfort with dysfunction, and conceding just to ease the feeling.
Instead, use our negotiation behavioral strategies: make conditional proposals, ask open questions, and reframe the issue collaboratively. That’s how tension becomes a creative force, not a roadblock.
Take this theoretical example:
In the final stages of a complex deal, the conversation got tense. The buyer challenged the scope, the seller pushed back, and silence followed. A less experienced negotiator might’ve rushed to make a concession to ease the discomfort.
Instead, the seller let the silence sit, then said, “Let’s talk through what’s behind the scope concerns.” That question opened the door to creative problem-solving and preserved the original pricing.
Lesson: Tension signals progress, not failure. It’s what you do with the tension that matters.
You know your own timeline, budget, and goals—but do you know theirs?
Too often, negotiators focus inward, missing the situational cues on the other side. Maybe their fiscal year is ending. Maybe a recent leadership change is driving new KPIs. Maybe their urgency isn’t personal—it’s systemic.
You can use smart questioning and active listening to surface these dynamics. Because when you understand why the other party is behaving the way they are, you can position your case more advantageously.
Let’s bring this concept to life with a fictional example:
A procurement lead negotiating a multi-site service contract assumed the vendor was in control—until a casual comment revealed the seller’s team was overbooked.
The buyer shifted focus and asked: “What would help you streamline delivery across locations?” That opened the door to discussing a phased rollout, which the vendor preferred. The buyer gained concessions in return.
Lesson: Internal pressure isn’t always visible, but when you find it, you find leverage.
Many negotiators focus entirely on the external party—supplier pressure, buyer urgency, client expectations—and ignore the internal dynamics shaping their own leverage.
For example, a sales rep might think their flexibility is limited because “finance won’t approve that,” but never actually checks. Or a procurement lead assumes engineering won’t accept an alternative spec, without having a strategic conversation to explore trade-offs.
Situational power is also internal. Your alignment, clarity, and preparation give you power—or take it away.
Here’s a hypothetical example:
A sales team went into a deal thinking they needed to stick to rigid pricing due to internal margin targets. But by aligning with finance and showing how a longer-term deal structure protected profitability, they unlocked the ability to offer more flexible terms—and won the client.
Lesson: Don't just analyze the other party’s constraints. Clarify your own. Unused internal power is wasted power.
Here’s a quick recap of what we learned about the most common situational power mistakes:
Misreading the moment isn’t a sign of inexperience—it’s a result of distraction, assumption, or habit. RED BEAR’s methodology equips negotiators to see clearly, think critically, and act decisively—even when stakes are high.
Situational power doesn’t need to be overwhelming. It needs to be understood. And when it is, professionals consistently create more value—for themselves, their organizations, and their counterparts.
Want to sharpen your ability to read and respond to the moment?
Contact RED BEAR to learn how our negotiation training can help your team see power more clearly—and use it more effectively.
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