Colin needs a car and negotiates with Tom to buy his car. Tom offers Colin to sell his car to Colin for $10,000. Colin searches Craigslist and finds a similar car to which he attributes a value of $7500. Colins BATNA will cost $7500 – if Tom doesn`t offer a price below $US 7500, Colin will consider his best alternative to a negotiated deal. Colin is willing to pay up to US$7500 for the car, but he would ideally only want to pay $US 5,000. The corresponding information is presented below: “Don`t put all the eggs in one basket” is an old proverb that has proven itself over time. 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”. In this case, there is a potential agreement area – $6,000 to $7500.
Somewhere in this area, the two sides should be able to agree. Here`s a process that was developed by Harvard Law School to develop the best alternative to a negotiated agreement: to balance these different alternatives to see which “is the best,” community members need to consider a large number of factors. BATNs are essential for negotiations, as you can`t make a smart decision about accepting a negotiated deal unless you know what your alternatives are. If a used car is offered to you for 7500 $US, but there is an even better one at another dealership for US$6500 – the US$6500 car is your BATNA. Another term for the same thing is your “Walk Away Point”. If the seller doesn`t drop its price below $6500, you`re going to buy WEG and the other car. Negotiations are more than the definition of a number of alternatives. Understanding the nuances of negotiation tactics can help improve professional relationships by resolving difficult disputes. Understanding negotiations can also help you assess personal strengths and weaknesses in the face of conflict and learn how to manage your negotiating tendencies. Finally, studying some people`s usual and potentially manipulative negotiation tactics can help negotiators neutralize their effects. .