Your BATNA is the Best Alternative to a Negotiated Agreement.
If the client will not allow you to pass on your increased cost to him, what is the best alternative? Is it to terminate the contract or is it to eat the cost increase yourself? If you are asking for a promotion or a raise, do you have another job lined up? You must determine your BATNA before you sit down to negotiate with someone. You have more control and power when you have a satisfactory BATNA. Many times your BATNA is a better action than making a concession that can hurt your reputation or the profit of your company. In a previous Ray’s Rule I said that you should never enter into a contract with which you would be angry to fulfill. Instead, choose you BATNA. You will happier and more productive when you do.