So after selling to professional negotiators at Fortune 500 companies for 4 years, I’ve learned one main takeaway about negotiations. I used to work at a company that sold subscription services to Procurement departments at Fortune 500 companies, and if you know anything about Procurement, you know that their job is to save money and negotiate deals. Needless to say, this was an amazing learning experience for both sales and negotiations.
So, let’s get to the question at hand:
What is the best negotiation tactic?
The best negotiation tactic is something called BATNA, which is an abbreviation for Best Alternative to a Negotiated Agreement.
All this simply means is…Having options
It’s simple, but it’s true. Whether this is in a business situation, or in a life situation, having a strong BATNA, or having strong options puts you at an advantage when it comes to negotiating.
To put it bluntly, this is simply because you are not as desperate for the deal.
Putting yourself in a position where you do have many options, is actually the best thing you can do when it comes to a negotiating. This can mean filling up your pipeline so you’re not desperate for the deal.
Or it can mean finding MANY deals, so if this one falls through, you are still in a good spot.
Having options, or having a strong BATNA gives you more leverage when going into negotiations.
You can even look at this from the perspective of dating, this might sound crass, but by having lots of options, you are coming to the table from a stronger position and a better position.
And in that sense, how can you work to have more options?
By actually improving yourself and your own situation.
So, at the end of the day, whether it’s in sales, business, or life, if you want to want to improve your negotiation skills, the most effective thing to do is improve your BATNA.
AKA work to improve the quality and quantity of options you have available!
Would love to hear what you guys think, comment below!