Two negotiators walk into the same high-stakes meeting.
The first clings to a single advantage—maybe they’ve done their research and believe that informational power alone will seal the deal.
But as the discussion heats up, their confidence wavers. They miss signals, let the other party set the pace, and walk away with less than they could have achieved.
The second negotiator? They know exactly what negotiation power is.
They’ve mapped their strengths, understand the other party’s preferences, and leverage every tool at their disposal—personal credibility, organizational backing, deep preparation, and more. They remain calm, adapt in real time, and drive the discussion toward a better outcome.
The difference isn’t luck; it’s understanding and using the full range and strength of your negotiation power, something we believe in very strongly.
This mindset, rooted in clarity, preparation, and awareness, is the foundation of informed confidence at the negotiation table.
KEY TAKEAWAYS
- Know the full range and strength of your negotiation power—situational, informational, personal, knowledge of the other party, organizational, and planning—and use them strategically.
- Power is as much about perception and mindset as it is about your actual position at the table.
- Behave with clarity and conviction: make clear demands, trade value, ask open questions, and stay in the zone of tolerance to manage tension and unlock creative solutions.
- Avoid common pitfalls like overestimating the other side, failing to prepare, and ignoring your personal power.
- Preparation and awareness, not bravado, are what set successful negotiators apart.
WHAT IS NEGOTIATION POWER?
We define negotiation power as your ability to favorably influence the outcome by analyzing, assessing, and managing all the factors that affect power.
It’s not about dominating the other party or relying on bravado. Instead, it’s about understanding the dimensions of your power—and the perceptions surrounding it—so you step into every discussion with control, composure, and clarity.
The issue isn’t how much power you possess, but how your power compares to the other party’s—and how well you understand that balance.
The reality is people who think they have less power behave less powerfully… because they don’t know the full range and strength of their power.
Negotiation power is as much about mindset as it is about position. If you believe the other party has all the leverage, you’re more likely to under-ask, over-concede, and miss opportunities to create value. The real game-changer is knowing your power and behaving with conviction and clarity.
Many negotiators underestimate their power because they focus too heavily on internal pressures or assumptions about what the customer wants.
To truly understand your power in negotiation, you need both perception and preparation. And, ultimately, you likely have more leverage than you realize.
THE RELATIONSHIP BETWEEN NEGOTIATION POWER AND TENSION
Negotiation power and tension are inseparable.
Every time two parties sit down at the negotiation table, there’s a natural push and pull—each side wants to gain, but both also need to find common ground.
This tension isn’t just inevitable; it’s essential. And the best negotiators don’t shy away from it. They use it to drive the negotiation process forward and unlock creative outcomes.
There are three dimensions at play in every negotiation: competitive, collaborative, and creative.
- The competitive dimension is about advancing your own interests and pressing for the best possible deal.
- The collaborative dimension is about building trust, understanding the other party’s preferences, and creating long-term value together.
- When these two forces are balanced, they create healthy tension—the kind that sparks creative solutions and breakthroughs that wouldn’t happen otherwise, a.k.a. the creative dimension.
But here’s the real differentiator: power in a negotiation isn’t just about having the upper hand or dominating the discussion. It’s about building genuine relationships and trust. In the collaborative dimension, trust acts as a force multiplier.
When both sides feel respected and valued, they’re more willing to share information, consider creative options, and work toward a negotiated agreement that benefits everyone for the long haul.
The bottom line? Embrace the inherent tension in a negotiation. Use your negotiation power not just to win, but to build relationships that deliver repeated success and open the door to better deals—now and in the future.
THE SIX SOURCES OF NEGOTIATION POWER
Power is layered and multidimensional, especially in negotiations.
Understanding the full spectrum of power available to you, and leveraging them strategically, can dramatically shift outcomes.
Here are six types of negotiation power you can leverage at the negotiation table:
- Situational Power: This type of power is all about understanding (and making the most of) the specific negotiation situation. Things like time pressure, the presence of alternatives, or mandates from higher-ups can all tilt the dynamic.
- Knowledge of the Customer: Understanding the other party’s motivations, needs, and decision-making style allows you to tailor your approach and create mutual value.
- Information Power: Insights from research, reports, or stakeholder intelligence give you leverage and confidence.
- Organizational Power: Your position in the hierarchy and the resources or authority you represent often matter more than you think.
- Personal Power: Confidence, tenacity, and your ability to remain calm and assertive under pressure are critical.
- Planning Power: The most underused source. Even ten minutes of structured planning can dramatically shift the power balance in your favor.
It’s important you understand and know how to use each of these sources of power effectively. An over-reliance on one type of power, like informational or organizational, can lead to a lopsided strategy with a lot still left on the table.
So before you start discussions, ask yourself:
- Have I identified all sources of power I can draw from (situational, information, planning, etc.)?
- What situational advantages do I have?
- What do I know about the other party?
- What information, authority, or preparation am I bringing to the table?
- Have I considered how both I and the other party perceive my power?
The most effective negotiators blend these sources, adapting as the conversation evolves.
HOW TO USE YOUR NEGOTIATION POWER
You know the full range of your power, but how can you use it?
Let’s translate it into specific, high-impact actions at the negotiation table.
MAKE DEMANDS CLEARLY AND ASSERTIVELY
Assertive demands aren’t about being aggressive—they’re about setting clear expectations and boundaries.
For instance, imagine you’re negotiating a contract renewal and the other party tries to sidestep a key issue by glossing over your terms or changing the subject.
Instead of letting the conversation drift or becoming defensive, a negotiator grounded in confidence and preparation can calmly bring the discussion back:
“I want to make sure we address the service-level guarantees before we move forward. Let’s clarify that point now.”
This approach demonstrates you know the value of your position and won’t allow important interests to be ignored. It signals composure, credibility, and control, qualities that build trust and keep the negotiation productive.
Remember, it’s always important to stay in what we call the “zone of tolerance” during these conversations.
It’s that perfect space where assertiveness is respected but not resented. Here, you use personal power and attentive listening to remain calm under pressure, demonstrate respect, and build trust-even in tense moments.
Assertiveness, when paired with professionalism and attentive listening, ensures your priorities are respected and the discussion stays focused on what matters.
MAKE TRADES THAT EXCHANGE VALUE
Negotiation isn’t about one side winning and the other losing—it’s about trading value.
When you leverage informational power and knowledge of the other party’s preferences, you can move beyond just haggling over price.
For instance, if a client is fixated on cost, you might offer flexible payment terms or added services instead of simply lowering your price. This protects your margin while still addressing the other party’s needs, demonstrating that you understand what matters most to them and can creatively meet those needs.
ASK OPEN QUESTIONS TO UNCOVER CONSTRAINTS AND FLEXIBILITY
Open questions are a direct application of personal and informational power.
Instead of accepting the other party’s positions at face value, dig deeper: “Can you tell me more about what’s driving this requirement?” or “What would make this solution work better for you?”
These questions uncover hidden constraints, reveal the other party’s true interests, and often surface new areas for creative solutions. This approach shows attentive listening and positions you as a problem-solver, not just a dealmaker.
COMMON POWER PITFALLS TO AVOID
Many negotiators undermine their own power without realizing it.
Here are the most common traps:
- Overestimating the other side: Walking in assuming the opposing party has all the leverage leads to unnecessary concessions and weakens your confidence.
- Failing to prepare: Lack of research, unclear objectives, and no contingency plans leave you exposed and reactive.
- Ignoring personal power: Underestimating the impact of your own credibility, communication skills, and ability to remain calm under pressure means you miss out on a critical source of influence.
- Talking too much, listening too little: Dominating the conversation instead of practicing attentive listening can cause you to miss key signals and give away your own position.
- Focusing only on price: Obsessing over a single aspect of the deal blinds you to creative solutions and broader value.
At the end of the day, understanding and using your negotiation power wisely allows you to run a more successful negotiation—one where you stay in control, adapt to pressure, and use the behaviors that consistently lead to mutually beneficial outcomes.
LEARN TO EMBRACE AND OWN YOUR POWER AT EVERY NEGOTIATION
Negotiation power isn’t about domination—it’s about preparation and informed confidence.
At RED BEAR, we teach that power is something you use to create better deals: deals that protect your margin, build trust, and are worth doing.
When you know your power, you don’t just react—you drive the negotiation process, create more value, and build relationships that last.
If you’re ready to stop leaving value on the table and start negotiating with conviction, book a RED BEAR negotiation training today.
Learn how to identify, build, and leverage your negotiation power for better deals, stronger partnerships, and lasting business success.
