1) Alternatives
The best alternative to a negotiated agreement (often referred to as BATNA), is what truly gives or takes power from you when negotiating. If your BATNA is good, you are not dependent on the other party. And if you have no alternative at all, you simply have to find a solution at the table. With an attractive alternative offer you can put pressure on your counterpart. The alternative can also be used as a reference point for you to back up your demands.
However, don’t focus excessively on the alternatives. According to an article on the website of the INSEAD business school, unattractive alternatives may even lead to your asking for less than if there were no alternative at all. To avoid that happening, focus on an alternative only in the event that it is a sufficiently strong one.
2) Information
Having information about the other side’s preferences and the maximum price they are willing to pay will put you in a very strong position when negotiating. Any insight into the worries and constraints of your counterpart will also improve your position.
How to obtain information?
- Do your homework during the planning stage.
- Ask questions about motivation, interests and preferences.
- Try to see things from your opponent's perspective in order to make an educated guess about their goals.
3) Status
Are you a respected negotiator? If so, that is good. Demands of negotiators with high status are more likely to be granted. But acquiring such status takes time. So building a reputation of a competent, trustworthy negotiator should be your long-term goal, if only because people prefer to negotiate with high-status players.
-jk-