Negotiating power plays a major role in every type of sales negotiation, whether it’s a labor negotiation, political negotiation, or a buy-sell negotiation. Both the buyer and the seller have power in a negotiation. Power is each side’s perception of its strength or weakness in comparison to the other. This perception of power affects the ability of each party to achieve its own goals. The more negotiating power you have in comparison to that of your buyer, the fewer concessions you’ll have to make.
