You Can Do Better If You Know Your BATNA
Being a good negotiator is not about closing as many deals as possible, it’s about closing the best deal and saying no when your BATNA allows you to do better. Not every negotiation concludes with an
You’re sitting across the table, a deal on the line. Maybe it’s a new supplier contract for your 12-person team, or a client pushing for a discount that feels too deep. The numbers on the printed proposal blur. You know you need a deal, but is this the deal?
Not every negotiation ends with a handshake. Sometimes, you walk away because you know you can do better. This decision hinges on your alternatives—what you gain if you don't sign the current agreement.
It’s crucial to distinguish between *options* and *alternatives*. Options are the levers you pull at the table: payment terms, discounts, guarantees. They're the cards you play to shape a deal. Alternatives, though, are the results you achieve without any negotiation at all. They exist outside the current discussion.
Roger Fisher and William Ury, in their 1981 bestseller Getting to Yes: Negotiating Without Giving In, laid out the core idea:
"The reason you negotiate is to produce something better than the results you can obtain without negotiating. What are those results? What is that alternative? What is your BATNA -- your Best Alternative To a Negotiated Agreement? That is the standard against which any proposed agreement should be measured."
Your BATNA isn't just a concept; it’s your leverage. After you’ve pushed for every concession, and both sides have put their final offers on the table, you measure the proposed deal against your best alternative.
If the deal beats your BATNA, you take it. If it doesn't, you either push for more, or you walk away and pursue that alternative. But remember: your alternatives must be real, and you must factor in the cost of pursuing them.
Identifying Your BATNA
It’s simple: what’s your backup plan? What would you do to meet your needs if this negotiation fails? The more realistic alternatives you have, the stronger your BATNA. And a stronger BATNA means more power at the table.
When you map out your BATNA, don't forget the other side has one too. Understanding their alternatives helps you prepare. It shows you how strong—or weak—your position truly is.
This insight lets you see the negotiation more clearly. You develop a realistic view of potential outcomes and what offers are reasonable. With a strong alternative to a bad proposal, your BATNA becomes your leverage. It lets you push for a better deal or confidently walk away. Knowing and strengthening your BATNA improves every negotiation you enter.