When balancing these different alternatives to see which “better” is, community members need to consider a large number of factors. At the same time, you determine your BATNA, you should also take into account the alternatives available to the other party. Sometimes they are overly optimistic about their options. The more you can learn about their options, the better willing you are to trade. They will be able to develop a more realistic view of reasonable outcomes and offers. “Don`t put all the eggs in one basket” is a proven old saying. For a trader, this wise old proverb illustrates that if you only trade with another trading team, you will end up having a lazy market. In fact, in the end, you can`t have an agreement at all. They must have a strong alternative, which is on track to have the power to say “no”.
A good BATNA increases your bargaining power. If you know you have a good alternative, you don`t need to admit much, because you don`t care if you get a deal. You can also press harder on the other side. If your options are slim or non-existent, the other person may place increasing demands, and you`ll likely decide to accept them – because you don`t have a better option, no matter how unattractive they will be on the table. It is therefore important to improve your BATNA whenever possible. If you have a strong one, it`s worth revealing it to your opponent. However, if you have a weak one, it`s better to keep this detail hidden. What is BATNA? The definition or ability to identify a negotiator`s best alternative to a negotiated agreement is one of the many pieces of information negotiators are looking for in developing dealmaking and trading strategies. If your current negotiation is at an impasse, what is your best option from the outside? Failure to have feasible alternatives when entering into a negotiation is simply not good practice. An attractive, feasible alternative option allows you to confidently reach a mutually beneficial agreement. It also allows you to leave with a satisfactory alternative.
The ability to negotiate or the negotiation strategy? It`s a bit of both – identifying a negotiator`s BATNA is a necessary ability to develop the best strategies that can be used at the negotiating table..