Pricing psychology & negotiation · strategy atlas
BATNA leverage
what it means
Your BATNA — best alternative to a negotiated agreement — is what you'll do if this specific deal falls through. The stronger your genuine alternative, the more leverage and calm confidence you carry into any negotiation.
a real example
A supplier who has multiple genuine buyers interested negotiates very differently — and gets better terms — than one who desperately needs this one deal to close, even if neither side says so explicitly.
when to use it
Before any significant negotiation — deliberately building or identifying your actual alternative beforehand changes both your leverage and your ability to walk away calmly if terms are poor.
when it backfires
Bluffing about a BATNA you don't actually have is risky — a sophisticated counterpart can often sense desperation regardless of what's said, and being caught bluffing destroys trust for the rest of the negotiation.