Negotiation Power
What is Negotiation Power?
Negotiation power is a party's relative ability to assert itself. It determines how strongly someone can push through their interests in a negotiation – and is rarely fixed, but can be influenced.
Negotiation Power in Detail
Negotiation power describes who can move how much in a negotiation. It is relative (always in relation to the other side) and perception-dependent – often what counts is less the actual than the power the other party believes in. The most important source of power is the BATNA: those who have a strong alternative can credibly walk away and are less dependent on the agreement. Further sources are information (an advantage in knowledge), time (whoever is under less pressure), dependencies (how much does the other side need me?), alternatives and competition, reputation, expertise, and the ability to create value. Important: negotiation power is rarely static – you can actively build it, for example by improving your own BATNA, gathering information, or bundling demand. Your own perception also counts: those who are aware of their strengths appear more confident. At the same time, power should be used fairly and with a view to the relationship – those who exploit their superiority ruthlessly risk long-term damage. Understanding negotiation power helps to assess your own position realistically and strengthen it in a targeted way.
In practice, negotiation power essentially decides the outcome, but is rarely absolute – rather relative and changeable. Its most important source is the BATNA: those who have good alternatives can more easily say no and stand stronger. Further factors are information, time and time pressure, the other side's dependence, resources, reputation, relationships, and competence and appearance at the table. Important: negotiation power is often also a matter of perception – those who appear confident and well prepared seem more powerful. You can actively strengthen your own power, for example through better alternatives, more information, or alliances, and assess the balance of power realistically. At the same time, power should be used with care: those who overdo it risk resistance and the relationship. Knowledge of your own and the other side's power position is the basis of clever negotiation strategy.
How do you strengthen your own Negotiation Power?
Negotiation power determines the relative ability to assert yourself. Its most important source is the BATNA; added to this are information, time, dependencies, and alternatives. It can be built – for example through a better BATNA – and should be used fairly and with a view to the relationship.
Negotiation Power – Examples in Practice
A candidate with an alternative offer negotiates from a stronger position. A buyer strengthens their power through comparison offers. Someone builds an advantage through better information.
Negotiation Power: Key Features at a Glance
- Definition: the relative ability to assert yourself
- Most important source: the BATNA
- Further sources: information, time, dependence
- Property: relative and influenceable
- Use: fairly and with a view to the relationship
Related Terms
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Negotiation Power: Frequently Asked Questions
What is negotiation power?
A party's relative ability to assert itself – how strongly it can push through its interests in a negotiation, always in relation to the other side.
What is the most important source of negotiation power?
The BATNA: those who have a strong alternative to the agreement can credibly walk away and are less dependent on the deal.
Can you build negotiation power?
Yes. It is rarely static – you can strengthen it, for example through a better BATNA, more information, or bundling demand.
Should you fully exploit negotiation power?
With care. Those who ruthlessly exploit a superiority risk long-term damage to the relationship – a fair, relationship-conscious use is usually wiser.