Winning Deals When You Have Less Power

Ever faced a deal where you had zero leverage?

With investors, big clients, major suppliers; do they really hold all the cards?

Negotiating from a weak position is a reality for many business leaders & entrepreneurs, but power in negotiations isn’t about size. It is about strategy.

Harvard Business School research shows that negotiators who focus on strategy (preparation and framing) can outperform those with more leverage.

Here are 3 strategies to flip the power dynamic—even when you seem outmatched.

1. The Anchor Effect: Control the First Number

A famous study by Amos Tversky and Daniel Kahneman on anchoring bias found that the first number mentioned in a negotiation heavily influences the final outcome...regardless of actual value.

Real World Example:

When TESLA Tesla was still a struggling startup, Elon Musk anchored the company’s valuation at $1 billion when negotiating funding rounds, even before revenue justified it. Investors subconsciously adjusted expectations upward, giving Tesla stronger leverage.

But anchoring isn’t just about setting a high number. It is about sustaining the illusion. Musk reinforced the valuation by:

? Projecting confidence in Tesla’s long-term vision despite weak financials

? Using media to shape investor perception through bold future projections

? Locking in key stakeholders who validated the valuation publicly

Key Takeaway: Your first number shapes perception therefore position your value strategically.

How to Use This:

Even if you have less power, be the first to set a reference point. Whether it’s price, terms, or expectations, anchoring shifts the negotiation in your favor.

2. The MESO Strategy: Offer Multiple Equivalent Options

A study by Medvec & Galinsky of Northwestern University found that negotiators who present three different deal options (instead of just one) increase their chances of closing a deal by up to 78%. That is called Multiple Equivalent Simultaneous Offers (MESO)

Real World Example:

Netflix offers subscription plans that reflect this strategy. Basic, Standard & Premium, catering for viewers need and budget tolerance. Nestle offers Nescafe, Nescafe Gold & Starbucks by Nespresso.

By addressing preferences, financial consideration, budget constraints, level of authority etc, you make it easier to strike a deal.

But MESO isn’t just about offering choices. It is about structuring them so that every option benefits you.

Another great example is WhatsApp 's $19 billion sale to Meta /Facebook. With just 55 employees, WhatsApp lacked the size and power to dictate terms. Instead, they:

? Positioned different acquisition scenarios (equity-heavy vs. cash-heavy)

? Implied that Google and other buyers were also interested

? Crafted a deal where WhatsApp’s independence was guaranteed

Key Takeaway: Options create the illusion of control—even when you’re driving the deal.

How to Use This:

If you’re at a disadvantage (or want your customer's money), never present just one proposal. Give multiple, well-structured options that make it easier for the other party to say yes.

3. The Illusion of Alternatives: Create Scarcity

At first glance, this might seem like the opposite of MESO.

It’s not.

MESO is designed to make saying yes easier. Scarcity is designed to force a decision when the options are there but the person hesitates.

Prof. Robert Cialdini , a leading expert on influence and persuasion, explains in his book Influence: The Psychology of Persuasion that "opportunities seem more valuable to us when they are less available."

Real World Example:

Despite the fact that I have worked in the aviation industry & understand how it works, every time I see "3 seats left" on a flight I am booking online, I feel the pressure to make a decision.

This same principle works in business negotiations. Some use it to get a partner to commit to marriage.

Scarcity also played a key role in Netflix’s early licensing deals with major studios. When negotiating with Hollywood giants, Netflix had little power; so they created the illusion that other content distributors were already on board. This forced studios to act quickly before competitors could secure better terms.

Key Takeaway: People hesitate when they feel they have time. But urgency forces decisions.

How to Use This:

1. Step 1: Use MESO to present multiple deal structures.

2. Step 2: If they stall, introduce scarcity; imply other offers are on the table or set a time limit.

Final Takeaways For Business Leaders

1. Anchor Early; Set the first reference point to frame the negotiation.

2. Use MESO First; Offer multiple deal structures to make saying yes easier.

3. Apply Scarcity If Needed; If they hesitate, create urgency by implying alternatives.

Leverage isn’t given. It’s created.

Whether in boardrooms or billion-dollar acquisitions, in international politics or in the farmers' market, the highest-stakes negotiations often come down to one thing. Leverage.

Negotiation isn’t always fair—sometimes, power is just an illusion.

Have you ever flipped the script in a deal where you had no leverage? Is there a point I missed? What would you do if you were Mr. Zelenskyy?

Let's learn from each other.