Best Alternative to a Negotiated Agreement (BATNA) is a term used when the negotiation does not work out and an agreement is not made. In that case, negotiation parties find out their alternatives to get what they actually want. Knowing your BATNA helps you to understand and figure out your practical alternatives rather than being too optimistic. This helps your negotiations more successful if the other party is more in power and didn’t agree to any agreement. It is important to understand the cost you would bear if the negotiations failed and no agreement is made.
You are a heavy bike salesman and you are closing your month-end with only 1 sale left to win a Thailand trip but the savvy customer is not agreeing with your price. The BATNA is not favorable at this stage and you will try to do more negotiations to win the deal.
