Know what the other choices are

Don’t develop just one alternative deal in a negotiation. List all the alternatives available to you should the negotiation fail to close on the terms you want. Don’t edit your list. Make it as long as possible. Life is always about exercising options. What are your options if you walk away from this deal? You have nothing to lose and everything to gain by listing your choices. Don’t inhibit yourself. Instead, list all your options, even if you don’t think they are very valuable or practical. You have plenty of time to edit them down later. If you’re buying a new car, your alternatives may include going to another lot, choosing another model, choosing another make, or delaying the purchase.

If you’re interviewing for a job, your alternatives may involve accepting a lower wage, accepting another job, continuing your search, going to another city, changing professions, or going into business for yourself. The point is that you have many alternatives. Keep your options open. Don’t limit yourself. Whatever the alternatives are in your situation, list them clearly and completely. If you find that you can’t list any alternatives, you aren’t ready to start negotiating. One result of being well prepared is the ability to create this list of alternatives before a negotiation begins.

Before you enter the negotiation, you should also try constructing a similar list of alternatives for the other party. The more you know about the choices available to the other side, the more strength you have in the negotiation. Consider these exercises as a part of your preparation.