CHECKLIST

Actively Manage a Sales

Negotiation to Your BATNA
Sellers who actively manage sales negotiations to their BATNA—their Best Alternative to a Negotiated
Agreement—and are aware of their own leverage are more likely to achieve successful outcomes, and less
likely to dramatically drop their prices, reduce margins, or agree to terms not in their interest.
1. REMEMBER THE THREE-STEP PROCESS FOR DETERMINING such as, “Is your employee attrition rate above 50%?” Open-
YOUR BATNA. ended questions can help raise and eliminate issues so you
… Identify alternatives. Brainstorm what your alternatives will can move on to more specific questions.
be if the negotiation doesn’t result in an agreement. As a
… Ask “anything else” questions toward the end of your
seller, your alternatives might include pursuing a different
interaction if you feel something is being held back or hidden.
opportunity or developing new work for existing customers.
Ask questions such as, “Is there anything else I should know
… Select the best alternative. After brainstorming, identify about the present licensing agreement?” When they respond,
which alternative best meets your high-priority objectives. in addition to listening to the answer, observe their body
language and other signals (e.g., averting their eyes).
… Improve your BATNA if possible. Research the alternative
and see whether there’s anything you can do to strengthen it. … Don’t be over eager to share information as it can signal
For example, if you walk away from one sale and you think you weakness and lack of confidence.
can close two other opportunities for a certain dollar amount,
… Be prepared to be questioned yourself. Know in advance
is it possible you could close three instead? Or increase the
what information you’re willing to share and what you don’t
average size of the sale?
want to disclose.
2. ESTIMATE THE BUYER’S BATNA.
… Exchange information incrementally, not all at once. In this
Seeing the negotiation from the buyer’s perspective can increase way, you can gauge what the buyer is willing to share, as well
your sense of control and confidence. While it’s unlikely you’ll as build trust.
know their BATNA with certainty, you can make some educated
guesses. 5. MAINTAIN CONTROL.
Remember, you can choose to remain in the negotiation or you
3. KNOW WHEN TO WALK.
can choose to walk away. You can also say no at any point—to
After you assess both your BATNA and that of the buyer, you’ll anything—if it’s not in your interest to say yes. In any case, you’re
know when you should walk. If the value of agreement is greater in control because you can make choices.
than the value of no agreement for both of you, you’ll move
forward. If the value of no agreement is greater for either of you, 6. KNOW YOUR BATNA.
you won’t.
Write it out and keep it handy. Review it before major
conversations to reinforce the fact that you’re actively choosing
4. INCREASE YOUR LEVERAGE.
to continue the negotiation process.
One opportunity to increase your leverage in a negotiation
is through the strategic use of information. Learn the buyer’s Finally, keep the mantra always be willing to walk in mind. It will
weaknesses, vulnerabilities, likes, dislikes, strategies, and help curb your anxiety and get you in the right frame of mind to
aspirations. Such information not only strengthens your leverage, succeed.
but also allows you to better meet the buyers’ needs and
respond to their tactics. 

Tips for gathering and sharing information in a negotiation

include:

… Ask for information directly and politely.

… Ask broad, open-ended questions to begin, such as, “Will

you tell me about ABC?” rather than closed, yes/no questions,

Learn to negotiate with favorable outcomes © RAIN Group