What Is The Best Alternative To A Negotiated Agreement (Batna)

There are also a few things to keep in mind to reveal your BATNA to your opponent. Although Fisher and Ury do not recommend secrecy in their BATNA conversations, according to McCarthy, „you shouldn`t reveal your BATNA unless it`s better than the other side thinks.” [5] But since you may not know what the other side is thinking, you could reveal more than you should. If your BATNA turns out to be worse than the opponent thinks. Then, the unveiling will weaken your attitude. A bargaining power or a negotiating strategy? It is a bit of both — the identification of a negotiator`s BATNA is a necessary ability to develop the best strategies that can be used at the negotiating table. In the diagram above, if Tom asks for a price in excess of $7,500, Colin will take his business elsewhere. In the example, we are not supplied with Tom`s BATNA. If Tom is expected to sell his car to someone else for $8,000, it is Tom`s BATNA. In such a scenario, no deal is reached, since Tom is only willing to sell for at least $8,000, while Colin is only willing to buy for a maximum of $7,500. With a good BATNA, you increase your bargaining power. If you know you have a good alternative, you don`t need to admit as much, because you`re not so interested when you get a deal. You can also push the other side harder. If your options are slim or non-existent, the other person can ask more and more, and you`ll probably decide to accept them – because you don`t have a better option, no matter how unattractive the person on the table becomes.

It is therefore important to improve your BATNA as much as possible. If you have a strong one, it`s worth revealing it to your opponent. However, if you have a low one, it is better to keep this detail secret. The preparatory phase is when you plan what you are going to do in the absence of agreement. You can also guess your opponent`s BATNA. Colin needs a car and negotiates with Tom to buy his car. Tom offers to sell his car to Colin for $10, 000. Colin searches Craigslist and finds a similar car to which he attributes a value of 7,500 dollars. Colin`s BATNA costs $7,500 — if Tom doesn`t offer a price of less than $7,500, Colin will consider his best alternative to a negotiated contract.