Let’s talk about BATNA in a negotiation – the Best Alternative To A Negotiated Agreement – in other words, “what’s your plan B?”
Our natural instinct is to think about our own BATNA. And frankly, I’m happy that you are at least thinking about your BATNA, because having one gives you alternatives, strengthens your negotiation position and makes it easier to project that ever-so-critical confidence during the negotiation.
As I always say, if you haven’t got a BATNA, start getting one. It may take 6 months, it may take 2 years, but not having a BATNA is a sure-fire way to hand power to your counterpart.
But wait. What about them? What about their BATNA?
Even if you have a weak BATNA, it maybe stronger than theirs, putting the power balance in your favour (at least on this particular power factor).
Consider your counterpart’s options if they were unable to complete the deal.
In the case of a seller, how easy would it be for them to replace the lost revenue, profit (and perhaps even the prestige) from your account?
What could be on the line for the salesperson? Damaged career prospects, a missed bonus, maybe the shame and stigma of being that person who lost your business!
In the case of a buyer, how easy would it be for them to find another supplier who could provide them with at least an equivalent product or service?
How much internal wrangling or political capital would it cost them (putting the noses of key stakeholders firmly out of joint)? How long might a change to a new supplier take, and what about the costs of switching?
You see, even though you think you’re in a position that’s weaker than the local beer at an all-inclusive holiday resort, you may be better off than you think.
That’s why it pays to objectively evaluate the position of the other party during your negotiation preparation.