What do you do if the negotiation takes an unusual turn? You will not always come up on a positive note, so you are very likely to make mistakes too. In such situations, I agree being aware of your alternatives will boost your self confidence during the negotiation. Besides, such information will help you avoid specific conditions that you might regret later on.
- What is your best alternative if the negotiation fails?
- What is the most unfavourable alternative?
It is easy to realize that your best alternative will never be as good as the actual deal. If it was, you would have focused on it instead. However, there are many cases when two parts simply cannot reach to a common point of view. Think about your inferior limit and ensure that your alternative is above it. Plus, you might find it surprising, but even the most unfavourable alternative might be better than nothing sometimes.
People who accept conditions under their inferior limit do it because they are desperate. They usually fail to research their alternatives too. A little research will make you feel safer, while this kind of attitude will reflect in your negotiation.