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What is BATNA and why is it important in a negotiation


BATNA stands for Best Alternative to a Negotiated Agreement.
A BATNA is your power and the more BATNAs you have the more power you have in the negotiation.
When you are buying a car, you have hundreds of BATNAs. There are lots of car dealers out there all wanting to sell you a car. Since there are so many alternatives your bargaining power is high. You can play the car dealers off against each other and you can use time and geography to your advantage.

Time: find out when is the best time to buy; is it end of month when the car dealer needs to meet their budget? Or maybe end of financial year or end of year is better.

Geography: If you are living in a big city why not go out of the city and buy your car from a dealer in a small town; you might get a better deal there than what you would in the city.

What about when you are buying a house; if you buy the house to live in chances are you start to get emotionally attached to it and really want this house. 
Real Estate Agents know that when emotions are involved people tend to pay more just to get the house. They use and emotion tactic by asking their clients who they take through the property how they could see their furniture fit in the house; how they would decorate the living room or the kids’ bedroom. How they could see themselves living in the house. 
They are doing this to make your BATNA become insignificant. While you might have got a couple of other houses in the area which you are looking at, chances are you are now totally hooked to this house and want to buy it even if you are paying more even if it is above your budget. It is important to take the emotions out and negotiate objectively. If you can’t do this then get someone else to negotiate on your behalf. Emotions in a negotiation can mean a weakness and if you show this to the other party they will take advantage of you.

BATNA is an important aspect of any negotiation as it gives you power.

The more alternatives or BATNAs you have the better your position. Always try and negotiate from a position where you have at least one alternative as this puts you in a position of power. Never be desperate, operate from a place where you don't need the other party, even if you do, don't show it.

www.octalonegotiation.com


#negotiationskills #negotiationpower #Negotiationcourse

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