Who has the power in a negotiation?

Blair Enns says that power can be calculated with this formula: P=db/D. 

P stands for power.
db stands for your desirability to the client.
D stands for your desire to win the project. 

Stated plainly, “the party that wants the engagement the most has the least power in the relationship.”

Let’s map this on a scale from 1-10. 

Let’s say your desirability to the client is a 5 out of 10. They want what you do, but they could live without it. Let’s also say that your desire to win the client’s business is an 8. You want this project badly. Maybe you wouldn’t bet the farm on it, but you’d do a lot to make it happen. 

This means, when we divide your desirability to the client by your own desire to win the project, we’re diving 5 by 8, giving us a power score of 0.625 out of 10. Your power score is 6/100. 

How does power play out in a negotiation? Since you’re not incredibly desirable to the client, but you really want their business, they’ll be able to ask for discounts, concessions, more deliverables, faster timelines, and you’ll agree. 

Let’s do two more examples. One that shows the opposite end of the spectrum, and one that is more realistic. 

Taylor Swift’s desirability to her fans is a 10 out of 10. Meanwhile, her desire to win their business might be a 1.2 out of 10. It’s not that she doesn’t want their business, but she certainly doesn’t need it. If any given ticket sale doesn’t go through because it’s too expensive, there are 50 other people waiting in line to buy that ticket. So when we divide her desirability by her own desire, she gets a power score of 83/100. This means she can charge exorbitant prices for her tickets and still sell out every night. 

Here’s one final example that’s probably more relevant for your creative business. Let’s say a client sees your work, loves it, and reaches out to see if you can work on something for them. Your desirability to the client is an 8 out of 10. They’re already sold on you and they want to find a way to make it work. Let’s also say that your schedule has been pretty full. You’ve been working a lot, making decent money, and you have more clients lined up in the future. You could fit this client in, but you don’t need to. This means your desire to win the project is a 3 out of 10. When we divide your desirability by your desire, you get a power score of 26/100. You can’t charge Taylor Swift money, but you can set high rates, not budge on them, and make the client work around your schedule, and they’ll likely still hire you. 

Reading this article, you’ve probably begun to realize how often you encounter this power formula in real life. Your friend wants to hang out more than you do, so they let you choose the restaurant. Your Hinge match has 100 matches, so they respond on their time. Your client’s brand is a household name, so you make a lot of compromises to win their business. 

Thinking with Blair Enns’ power formula makes a lot of things clear. Pick up his book here.