Understand Your Assets First For Better Leverage In Negotiations

Understand Your Assets First For Better Leverage In Negotiations

When you have to negotiate something, chances are you’ll look at what you want and what the other party’s asking to get it. Instead, focus on what you have to gain better leverage in the deal.

Picture: harmishhk/Flickr

As business blog Entrepreneur explains, negotiations are all about leverage. And the leverage you have is defined by what you have to offer. For example, if you want to buy a car, but you have no money, you don’t have any leverage at all. If you can pay cash up front, you have leverage to get a better deal. So, before you negotiate anything, start by identifying what you have:

It’s critically important that you have a clear understanding as to where you do and do not have leverage. Assess your position to determine which party has the greater need or want and which provides more value in certain areas. If your opposing party is in need of something that only you possess, you can use leverage to push for better pricing.

This can extend to any area of your life where your will meets someone else’s. Asking for a raise, pursuing a project, or just haggling over stuff at the flea market all boil down to what you can offer. So, rather than letting the other party set the terms, examine what you can offer to change their position.

Master the Concept of Leverage to Get What You Want in Business and Life [Entrepreneur]


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