You're facing a supplier negotiation with skewed power dynamics. How do you assert your position effectively?

Shift the scenario by taking control of the negotiation process - set the agenda, ask targeted questions, and dictate the pace of the negotiation. Although the power dynamics may seem unbalanced, your ability to demonstrate value can shift the balance in your favor. Clearly articulate what makes your business a valuable partner. A strong BATNA gives you confidence and leverage. Before entering the negotiation, explore alternative suppliers, consider diversifying your sourcing strategy, or identify options that reduce your dependency. Even in challenging power dynamics, assertiveness does not mean aggression. Focus on collaborative problem-solving, presenting solutions that align interests.

Beyond building rapport, maintaining trust requires consistency in your actions and commitments. Follow through on agreed terms, communicate openly, and demonstrate reliability in your dealings. Understanding the supplier’s motivations, concerns, and constraints allows you to navigate negotiations more effectively. The principle of reciprocity plays a powerful role in negotiations. If you extend goodwill - whether by accommodating minor requests, offering small concessions, or showing flexibility in non-critical areas - you increase the likelihood of receiving the same in return.

Never grant something without tying it to a benefit. Use the if… then… technique, such as: "We can consider a discount if the order volume increases by X%." This maintains balance and prevents unilateral concessions. The timing of a concession can significantly influence its perceived value. Holding back concessions for strategic moments in the negotiation can increase their impact and strengthen your position. Even small concessions can appear more valuable if they are well communicated. Explain the impact and benefits so that the other party perceives your gesture as something significant.