Just like any challenging task, negotiations too require preparation. It is necessary for you to determine your desires, considerations and limitations. Personal preparation is also necessary. Self-confidence and a positive attitude are the keys to personal preparation.
Without these preparations, you may end up giving more than you achieve from negotiations. Finding out the balance between what is acceptable and getting the best possibilities on your side depends on your determination to negotiate with your strongest bargaining attributes.
Establishing WATNA and BATNA
Often, many negotiators don’t have a clear idea of these alternatives. As a result, they don’t wish to make concessions, as they believe they can get away without negotiating. By Establishing your WATNA (Worst Alternative to a Negotiated Agreement) and BATNA (Best Alternative to a Negotiated Agreement), the parties may be influenced to think of the alternatives to a negotiated agreement.
In an ideal situation, negotiations would not be required. Not having a clear picture of your WATNA and BATNA will result in poor negotiation built on false notions about your expectations and agreement. Also, for focusing on purposeful negotiations, your WATNA is crucial. You should always consider the worst case scenario before negotiating.
The BATNA is even more important than the WATNA. If negotiated agreements are absent, you will be forced to enter negotiations hoping to get just a satisfactory agreement.
Usually, people enter into negotiations only when they feel necessary. They base this on analyzing their WATNA and BATNA. It is important for you to deduce a WAP (Walk Away Price). This WAP is, in general, considerably less than your starting offer.
If the other party comes to know that you wish to have a lot less than your offerings, then your negotiating position will be weak. If the other party has any idea about your WAP, then your WAP just becomes your price.