Fine Arts 101

Sculpture. Photography. Negotiation. Painting. Wait a minute. Negotiation? How does that fit? You may not realize it, but negotiation really is an art form. Being a good negotiator can bring you the power you need to be successful. There is a process to negotiating that goes much deeper than just haggling for a better price on a used car. Becoming more familiar with successful negotiating techniques will not only help to alleviate the sometimes strenuous process, but also help you come away with what you want.

The "Best Alternative to a Negotiated Agreement," or BATNA, was developed by Roger Fisher and Bill Ury, two Harvard negotiation researchers. BATNA can be summed up as: "the course of action that will be taken if the current negotiations fail and an agreement cannot be reached." Before entering negotiations, you should prepare an alternative proposal by establishing your BATNA. Generally, any offer worse than your BATNA should not be accepted. But there are, however, certain factors that may come into play, such as time value of money or relationship value. Here's a great example:

Comp Used.S.A. has offered you $300 for your computer. You know your computer is worth more than that, but something is better than nothing. As you attempt to find someone who'd be willing to pay more, you know you always have the $300 offer as a fall back plan. This is your BATNA.

A co-worker offers you $325 for your computer, but he can't give you the money for two months. Is that a good deal? Two months from now, would you still get $300 from Comp Used.S.A? What happens if you wait for your friend and then he decides he no longer wants it?

Your little sister says she'll give you $200 for it. That's $100 less than Comp Used.S.A, but she is your sister.

Computerville is offering you $400 for it, but that's only if you trade it in for a new super laptop. You don't really need a fancy new computer, but they are offering $100 more. Is an extra $100 now worth more than higher monthly payments, and a laptop that isn't exactly what you want?

By having your BATNA set at $300, you know your best alternative solution.
Even though you really wanted $500 for it, you've set your limits and now have a negotiating position. If getting the $500 you want is unreasonable, you now know that you shouldn't accept an offer lower than $300.

Taking the time to prepare for your negotiations by evaluating the situation and developing alternative proposals, like BATNA, will only help you as a negotiator, and will bring you one step closer to getting exactly what you want. And once you've become a true "artist," maybe you'll even be able to get that Picasso or Rodin you've always wanted.

Learn more about this author, Eric Halsten.
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