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Negotiation Power in Action

Negotiation Power in Action
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Siužetinės Linijos Aprašymas

A storyboard depicting different types of negotiating power used during a negotiation.

Siužetinės Linijos Tekstas

  • Fabricorp opens by using their negotiator's personal power to augment their constructive and obstructive power. She wants to narrowly frame the negotiation as a compromise over raw numbers.
  • NORMATIVE
  • PERSONAL
  • OBSTRUCTIVE
  • CONSTRUCTIVE
  • As the contract is up for renewal, we're proposing a modest, 8% increase in the rate. We can sign the paperwork now, leaving everything else exactly the same. Your day-to-day operations won't change at all.
  • NextWidget knows that they could be pressured into an unfavorable deal if they try to haggle about price. They switch the focus of the negotiation, relying on normative power.
  • Mega Manufacturing's rates are significantly lower than that though. We simply can't justify a large departure from the industry average.
  • Our margins are thin enough to begin with. You know we're good customers, maybe there is a something we can work out.
  • NORMATIVE
  • NORMATIVE
  • WALKING
  • However, Fabricorp responds with their own normative argument.
  • CONSTRUCTIVE
  • Remember that shipment debacle last April? Fixing those sorts of problems is what you're buying with a very modest rate increase.
  • We both know only Fabricorp can give you the reliability and customer care that you enjoy right now.
  • I understand your situation, but we have the same pressures on our side. The increase isn't arbitrary, it reflects higher costs, some of which we have to pass along.
  • NextWidget demonstrates both their normative and walking power when mentioning Fabricorp's competitor. This effectively neutralizes most of Fabricorp's obstructive power, while acknowledging some remains.
  • Frankly, I don't like the idea of the paperwork that would involve, but they might be our best option.
  • Hear me out. I think I have a plan that can protect us both against rising costs, and an opportunity to increase profits in the long term.
  • PERSONAL
  • CONSTRUCTIVE
  • In response, Fabricorp once again narrows the discussion to a single issue, but this time centered around constructive power.
  • That's true. I have another idea though...
  • NextWidget prepares to present a package deal that benefits both sides. This uses a different sort of personal power, a capability for creative collaboration, to augment constructive power.
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