Leverage Your Power Using Power Tags

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leverage your power using power tags

Win More Negotiations

We’ve learned a lot about power in negotiations in our AREN and PREN courses, but how do we use power to get better results for our clients and ourselves?

If you tell the other side you have more power, you create an environment of conflict and defensiveness; this doesn’t lead to collaborative deal-making.

Skilled negotiators do something different. They assess their power and the other parties’ power, and then the skilled negotiator adds power tags into their conversation. A power tag is a subtle mention of a situation that lets the other side know you have a power advantage; this keeps the collaboration intact.

Let’s look at some examples:

“if everyone is moving forward together,
then success takes care of itself”

– Henry Ford

Example 1:
“My buyer really likes the home and is making an offer, but it’s likely different from the price you and your seller were expecting. We think you would prefer to see an offer rather than not at all. My buyer is also considering the house over on Sixth Street if they can’t come to an agreement with your seller.”

This is a collaborative way to assert your buyer’s BATNA: to buy the other property.

Example 2.
“I would really like to help you and your family find the perfect home. I like to focus my attention on only a few buyers at a time so that I can do a great job for them. I am currently working with three other buyers, but I do have room for one more client on my roster. Would you like to work with me?”

This is an example of using scarcity and BATNA to make working with you look very attractive.

Example 3.
“Ms. Seller, I really do understand that you want as much for your property as possible, and I also want that for you. Right now, there are few buyers for higher-priced homes like yours, which puts downward pressure on pricing. While the market might change for the better, it could take some time. We must sell into the existing market conditions if we want to sell now. I recommend a price reduction of $xx.”

This is an example of using market power to help a seller decide pricing.

Example 4.
“Mr. Seller, what is your plan if you are unable to sell your home?”

This is an invitation for a seller to consider their BATNA.

You must take three essential steps to use Power Tags effectively: plan for your negotiations, do an accurate power assessment, and use your negotiation skills to craft the perfect words.