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Positive leverage in business negotiations can be seen in various scenarios. For instance, if a company has a unique product or service that is in high demand, they have positive leverage over potential buyers. They can use this leverage to negotiate better terms, such as higher prices or more favorable contract conditions. Another example could be a company with a strong financial position negotiating with a struggling company. The financially stable company has the leverage to dictate terms, knowing the other company is in need of a deal. Lastly, a company with a strong brand reputation has positive leverage when negotiating with suppliers or partners, as association with the brand could be beneficial for them.
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Positive leverage stems from a circumstance in which the other side naturally has more needs than you do. This can be real or perceived, but regardless, if you sense the other side is a little desperate, you have positive leverage on your side. You have what they want and the ability to offer that or withhold it in exchange for a demand of your own.
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Ever wonder what makes a great negotiator? Read this book summary to learn about the latest social science and psychology research on negotiation. Get...
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