๐Ÿ’ฐNegotiation & PricingIntermediateยท 4 min read

BATNA: know your alternative before you sit down

Your Best Alternative To a Negotiated Agreement is the floor under every yes.

Combine fundamentals with timing and read.

The framework. BATNA โ€” coined by Fisher & Ury in Getting to Yes โ€” is what you'll do if THIS deal doesn't happen. It's the only honest measure of how much you should accept.

Why it matters. Without a clear BATNA, "any deal is better than no deal" becomes the default โ€” and that's how reps sign garbage that creates churn, refunds, and reputation damage.

Calculate yours.

  1. List alternatives. What other deals are in your pipeline? What does walking away cost in revenue, in time, in opportunity?
  2. Score the best one. Not "all of them" โ€” the best one. That's your BATNA.
  3. The current deal must clear it. If the offer on the table is worse than your BATNA, walking is the rational move, not the brave one.

Estimate THEIR BATNA too. What happens to them if they don't buy from you? Status quo? A worse vendor? Build it themselves? The weaker their BATNA, the stronger your position.

Strengthen yours visibly. Mention pipeline. "We've got two onboardings starting Monday." Not braggy โ€” factual. They feel that you have options.

The discipline. Recalculate your BATNA every Monday. Stale BATNA = stale leverage.

Mini drill

List your top 5 open deals and assign a $ value ร— probability to each. Your BATNA on any single negotiation = the next-best deal you'd lock if this one died. Use it as the floor.

Flashcards
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Sources & further reading
  1. BookRoger Fisher & William Uryโ€” Getting to Yes โ€” BATNA chapter (1981)
    https://www.pon.harvard.edu/daily/batna/
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