I should note that leverage isn’t the same thing as power.
Donald Trump has tons of power, but if he’s stranded in a
desert and the owner of the only store for miles has the
water he wants, the vendor has the leverage.
One way to understand leverage is as a fluid that sloshes
between the parties. As a negotiator you should always be
aware of which side, at any given moment, feels they have
the most to lose if negotiations collapse. The party who feels
they have more to lose and are the most afraid of that loss
has less leverage, and vice versa. To get leverage, you have
to persuade your counterpart that they have something real
to lose if the deal falls through.
At a taxonomic level, there are three kinds: Positive,
Negative, and Normative.
POSITIVE LEVERAGE
Positive leverage is quite simply your ability as a negotiator
to provide—or withhold—things that your counterpart
wants. Whenever the other side says, “I want . . .” as in, “I
want to buy your car,” you have positive leverage.
When they say that, you have power: you can make their
desire come true; you can withhold it and thereby inflict
pain; or you can use their desire to get a better deal with
another party.
Here’s an example:
Three months after you’ve put your business on the
market, a potential buyer finally tells you, “Yes, I’d like to
buy it.” You’re thrilled, but a few days later your joy turns
to disappointment when he delivers an offer so low it’s