Consider best alternative if negotiation doesn't reach agreement

This skill may fits your demand either as a supplier or customer.

BATNA, or the best alternative to a negotiated agreement, refers to the course of action that will be taken if the current negotiations are not successful and an agreement cannot be reached. Any basic course on negotiation will introduce the concept of BATNA, which emphasizes the importance of determining what your alternatives and options are if the negotiation doesn’t reach agreement. Having a BATNA means doing your homework before you begin your negotiation. You should be very clear even before you begin you negotiation what your best option is if you don’t reach an acceptable deal with your negotiation partner. It is important to know that the BATNA is not your bottom line. A bottom line acts as a final barrier where negotiation will not proceed further; it signifies the worst possible outcome that a negotiator will accept. However, BATNA is a carefully considered contingency plan. It is like having a plan B if your negotiation doesn’t work out.

Having a clear idea about your best alternate solution will give you a great edge in negotiation because it will keep you from agreeing to something less favorable than what you could do without the negotiation. In fact, one of the most important things you can do to be a successful negotiator is to understand the power of developing a strong BATNA before starting any negotiation. Having a strong BATNA will let you know whether or not to accept a negotiated settlement because you will already know whether it is possible to obtain a better outcome by alternative means. The negotiated agreement should not be accepted if it is not deemed better than the BATNA.

Practical application of the BATNA concept includes planning for adequate time in your negotiation preparation to research potential options for what you would do if your negotiation doesn’t work out. When creating a BATNA, you should first brainstorm a list of all available alternatives that might be considered if the negotiation proves unfruitful. Second, examine the most promising choices on your list and develop them into attainable or practical options. Finally, identify the most promising of the alternatives and keep it in reserve during the negotiation as a fall-back. Furthermore to negotiate with greatest success, you should not only know your own BATNA, but also learn to accurately estimate your partner’s BATNA.