It’s noon at a railway station. Ten autos are lined up outside. The first driver asks for ₹300, you say ₹150, and he settles at ₹180. You barely had to try.
Now it’s 1 a.m., raining, and there’s exactly one auto. He asks for ₹500. You argue for a minute, then get in.
You’re the same person in both stories, just as good or bad at bargaining. The only thing that changed was what you could do if you walked away.
What’s going on
Negotiators call this your BATNA: your Best Alternative To a Negotiated Agreement. Roger Fisher and William Ury coined the term in their 1981 book Getting to Yes.
Your BATNA is what happens if this deal falls through. At noon, it’s the next auto in line. At 1 a.m., it’s a long walk in the rain.
Whoever has the better alternative can afford to say no. And the side that can say no usually gets the better deal.
Think of a door behind you
Negotiating without a BATNA is like arguing in a room with no exit. Every threat to leave is a bluff, and both sides can tell.
A good alternative is a door behind your chair. You may never use it. But knowing it’s there changes how you sit, how you speak and what you’ll accept.
Where you’ll spot it
- Salary talks. A candidate with a second offer negotiates very differently from one with none.
- Buying a car. A quote from the dealer across town is worth more than any bargaining trick.
- Business deals. Companies get three vendor quotes even when they’ve already picked a favourite.
- Startup fundraising. Founders try to have several investors interested at once, so no single one can set the terms.
How to use it
Before the negotiation:
- Write down your BATNA. Be honest. “Something better will come along” doesn’t count.
- Improve it. Apply for the other job, get the other quote, find the second supplier. This is where most negotiations are really won.
- Set your walk-away point. Decide the worst deal you’ll accept, and stick to it when the moment feels tense.
- Estimate theirs. What happens to them if you walk away? Often they need the deal more than they’re showing.
During it: don’t reveal a weak alternative, and don’t bluff about a strong one you don’t have. Good negotiators can usually tell.
You don’t win a negotiation at the table. You win it before you sit down.
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