According to traditional economic theory, the optimal reservation price results from balancing two opposing effects. The best deal is the one that gives you the most value while also making your counterpart happy.
One is that it keeps the negotiation in motion and creates accountability for the counterpart to respond. If the red Taurus is still tugging just a little bit harder at your heartstrings, the blue Taurus is your BATNA—and it sounds like a pretty good one.
Negotiations are fluid and sometimes unpredictable.
But remember, this is a shield, not a sword. You can easily assemble one of these in Word or Excel. Yet, at this point, I need to introduce an important wrinkle: You will need to improvise and adapt, but your planning doc is your guiding light The planning doc is like your script for the negotiation.
Beyond that, it gets tricky. Procedural information — open discussions about the negotiation process that helps to manage that process.
But what if we added other issues to the table. Don't be afraid to take the time to think before responding. The revenue split is important to all involved, but more important to you because it's your primary - or only - source of cash flow The exclusivity is important to me because exclusives makes the purchase of PS4 consoles more attractive, and more consoles in the market mean more software sales The timing of the exclusivity is more important to me for the same reason The advertising is more valuable to you because you don't have the advertising economies of scale that I do On and on, until you and I iterate to an agreement that offers the best balance of our needs.
Once you have some rapport, ask about the issues. What is the relative value of one title vs. In gamer terms, integrative negotiations are analogous to character creation in an RPG.
The planning doc is like your script for the negotiation. Future posts will discuss new problems and strategies, but these four will always remain at the core. First, a higher reservation price is desirable for the seller since it deters bidders from falsely claiming that they have only a small valuation.
Look at the negotiation from your counterpart's point of view. If you threaten to walk, and your counterpart calls your bluff, you better walk. To avoid that kind of deal, you need to know what you really want. But you can't have it all.
Tip 2: Know your Reservation Price (RP) – In plain English, know how much the alterative costs you. For e.g. a Van Heusen shirt in seconds store may cost Rs, while retail may be Rs For e.g. a Van Heusen shirt in seconds store may cost Rs, while retail may be Rs Bill Ury call this your BATNA, your best alternative to a negotiated agreement.
Economists call this your reservation value. In the examples we used so far, the idea of reservation value has been so. BATNA is a term coined by Roger Fisher and William Ury in their bestseller, Getting to Yes: Negotiating Without Giving In. It stands for "Best ALTERNATIVE TO a negotiated agreement." Said another way, it is the best you can do if the other person refuses to negotiate with you--if they tell you to "go jump in a lake!".
Assess your BATNA and set a reservation price. The BATNA in this case is shared—going to court. The BATNA in this case is shared—going to court.
You have a lot of information about the legal case. Beyond the reservation price, you prefer no agreement. Reservation Price is equal to your BATNA +/- other issues that make you want to do the deal e.g., opportunity costs, switching costs, ego, miscellaneous preferences Define your reservation price before negotiating Learn your opponents’ reservation price, if possible.
Tip#2: Know your BATNA. In business, a BATNA is the Best Alternative to a Negotiated Agreement. In business, a BATNA is the Best Alternative to a Negotiated .Batna reservation price