In all situations, but especially when No Deal is the potential outcome, it is important to understand your Best Alternative To a Negotiated Agreement (BATNA) before negotiation begins.
For example, if you are trying to buy a new product to replace an old one, your BATNA would be to continue using the old product. If your old product no longer functions, your BATNA is to go forward without the use of that product. When you need that product and the old one no longer works, you have a weak or unacceptable BATNA. In that situation, you may have to accept terms that are less than ideal, as No Deal could be the worst possible outcome for you.
The better your BATNA going into a negotiation, the stronger your negotiation stance, since you have an acceptable alternative. In the example above, if your old product is still functioning and you can continue to use it, you can negotiate knowing your worst case scenario is to simply continue to use the old product.
Continue Reading: The Good, the Bad, and the Ugly of Negotiation