Transcript for:
Understanding Negotiation Strategies and BATNA

one way to be well prepared for negotiation is having a strong batner batner stands for best alternative to a negotiated agreement it is your backup plan if you can't make the deal you want it is your walk away point the benefits of using batner it provides an alternative if negotiations fall through it provides negotiating power it determines your reservation your walk away point and it gives you confidence in negotiations batner should always be considered before a negotiation takes place it is never wise to enter into a negotiation without knowing your batner let's take a closer look at the batner model and how each party can best negotiate on an agreement Zopa stands for zone of possible agreement and is the overlap between the buyer and sellers settlement range the seller's settlement range is a bidable range acceptable to the seller and the buyer's settlement range is a bidable range acceptable to the buyer the buyer and seller's worst case is the reservation point of the respective parties for example if the buyer offers a price that is lower than the seller's worst case scenario then the seller may have to find another buyer unless compromise is possible and if the seller offers a price that is higher than the buyer's worst case then the buyer is better off with an alternative solution unless a compromise can be made let's look at a real life example Jane wants a car she wants to pay 500 pounds but can go as high as 750 pounds for the right car Tony wants to sell a car for 1 000 pounds but is willing to take 650 pounds as the lowest offer if the buyer pays cash this means the Zopa range is between 650 pounds to 750 pounds which is the point where Jane and Tony could agree if they negotiate well being prepared doing your research to determine batner means you are not forced into accepting a bad deal which you could be if you go into a negotiation unprepared not knowing your batner thanks for watching we hope this video has helped for more information please contact us or visit our website don't forget to hit subscribe for more upcoming training videos