The Negotiation Book: Your Definitive Guide To Successful Negotiating

7.6. EMPOWERMENT WHICH PROTECTS YOU

Many organisations actively promote such business values as creativity, entrepreneurship and even empowerment. This serves to encourage open thinking within an unconstrained culture. Yet when negotiating with suppliers and customers they recognise that there have to be limits within which individuals are empowered to operate, otherwise the business will lose total control of its operation. The same businesses that promote these values also operate a disempowered structure to protect their own business operation. They use a price list which serves to disempower the salesperson, as does the accompanying printed discount structure. It is defended on the basis of providing transparent pricing for all and that volumes can be accommodated in the accompanying discount structure but no more. The salesperson under these circumstances is disempowered to the point where they are little more than an order taker. If the customer demands better terms they have to speak to the boss. The boss, a supervisor, is also disempowered. They have a boss and if you can get to them, because they are usually 'out of town', you may just be able to attract a better deal.

Tactically, empowerment allows you to use a third party, citing your lack of authority to move further, which serves to take the pressure away from you. If not used carefully though, it can backfire. Many companies employ an escalation process involving many layers of empowerment, ensuring those they negotiate ...