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

At the same time, you determine your BATNA, you should also consider alternatives on the other side. Sometimes they may be too optimistic about their options. The more you know about your options, the better you`ll be willing to negotiate. They will be able to develop a more realistic view of results and reasonable offers. In the opposite situation, what can you do with a weak BATNA? Can you turn around? Yes, you can do that, and there are two ways to do that. The first option is to strengthen your own BATNA. The second way is to weaken the other team`s BATNA or at least influence the other team`s perception of their BATNA. Under these conditions, you can choose to allude to your own powerful batna. We advise our clients, in our sales negotiation training, not to rub a buyer`s nose in its unfortunate negotiating position so that the buyer is not insulted.

An offended buyer could start working on a medium- and long-term alternative to decide to undertake activities with your business. The following graph shows the best alternative for each party to a negotiated agreement (seller and buyer): “Don`t put all the eggs in one basket” is an old and proven proverb. For a negotiator, this old intelligent saying shows that at the end of the day, you can have a lazy market if you negotiate with another negotiating team. In fact, you can end up with no deal at all. They must have a strong alternative waiting in the wings to have the power to say “no.” 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. Colin is willing to pay up to 7,500 $US for the car, but ideally he would only pay $5,000. The relevant information is illustrated below: In the negotiation theory, the best alternative to a negotiated agreement or BATNA (no deal option) refers to the most advantageous alternative that a party can take in the event of a failure of negotiations and no agreement. WATNA (worst alternative to a negotiated agreement) is quite the opposite of this option.