We’ve talked about some negotiating techniques and how to maximize your chances of getting what you want. But before you start negotiating, you have to prepare. It is useful to learn about your negotiating partner (I don’t say adversary; I don’t think of most negotiations as a zero-sum game). The more you know, the better you can understand what they want and what their position and interests are likely to be. But more importantly, you need to understand what you want. That sounds obvious. Of course, you know what you want. But how much do you want it? What are you willing to give up to get it, and when should you walk away from the deal on the table? For that, you have to know your BATNA.
BATNA stands for Best Alternative To a Negotiated Agreement. If you don’t make this deal, what’s your backup plan? For a simple example, if I’m going out for lunch, I may stop by a new Chinese restaurant to look at their menu. Is there something I want to eat? Do I like their prices? If I do, I buy lunch there. If not, I’ll go to my usual deli. That’s my BATNA. As I’m considering the menu at the Chinese place, I’m comparing the deal on offer there to one at the deli, and I take the one that appeals to me more.