Negotiation Space

Everyday Negotiations In Business and In Life: -- Observations -- Tips -- Insights -- Techniques

Friday, November 16, 2007

Take It Or Leave It!

"Take it or leave it" is a negotiation. And, there are many bargaining situations in which it is appropriate. This tactic has a legitimate place in your negotiating tool kit.

Much of today's business is conducted on a "take-it-or-leave-it" basis, whether we like to call it that or not. When you go into a retail store you see items clearly marked with a price. Some prices, like your electrical or water bill, are fixed by regulations. Many industrial goods and services are sold at the same price to all customers.

"Take it or leave it" is not as ominous as it sounds. It often represents good pricing policy for the seller, and a better way for the buyer to buy.

"Take it or leave it" makes sense under the following conditions:

* When you don't want to encourage future negotiating.

* When the other party is under a lot of pressure to say "yes" to what you propose.

* When a drop in price to one customer will force a drop to all customers.

* When others have already accepted your proposition.

* When you can't afford to risk a loss because you are selling at the lowest possible price.

* When you want to signal the other party that you have gone as far as you are going to go.

If you are going to use "take-it-or-leave-it" in your negotiation, there are ways to minimize hostility. Never use the expression itself because the words alone are enough to anger the other person.

"Take-it-or-leave-it" positions that are backed by legitimacy are less offensive. When a firm position is backed by regulations, published policies, clearly observed price tickets, or customary trade practices, it tends to be accepted more easily. The same is true when your firm position is accompanied by a good explanation and positive proof statements.

People are more willing to accept a "take-it-or-leave-it" later in a negotiation than earlier. Timing is important in reducing hostility.

"Take-it-or-leave-it" is a legitimate tactic in negotiation. A surprising number of people welcome it because it saves them the trouble of bargaining.

If you are going to use it, there are three things you must do. First, give the other party all the time needed to discuss the matter; and second, be sure to tell your boss, or your team, that you are going to use it. The person who forgets this is could be in real deep trouble. Finally, if you use 'take-it-or-leave-it' as a negotiating tactic, remember it could result in a 'dead lock'. You need to plan for this. If you really want, or need, to come to an agreement with the other party, determine which negotiating techniques you will use to re-open negotiations should a 'dead-lock' occur.

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Scrambled Eggs and Negotiating

Disorder -- (i.e. Scrambled Eggs) -- is a negotiating tactic.

When negotiating good, lasting agreements, it is generally wiser to simplify matters than to confuse them. However, "Scrambled eggs" does the opposite. It deliberately mixes things up for tactical reasons. Scrambling can be used to forestall a deadlock, make the other person work harder, force through a last-minute demand, or retreat from a prior concession. Sometimes it is used to determine how well the other person keeps his or her wits under pressure.

Negotiations should be conducted in an orderly fashion. The Scrambler knows that disorder can also work.

The Scrambler takes advantage of the mistakes people make when they are confused. Suddenly apples can't be compared to apples, and cost comparisons become impossible to make.It takes self-confidence to stop a Scrambler. These steps help:

1. Have the courage to say, "I don't understand."

2. Keep saying "I don't understand" until you do.

3. Insist that matters be discussed one at a time.

4. Recognize that you do not have to talk about things as the Scrambler wants you to. Start in your own way and get the Scrambler going down your line of reasoning.

5. Remember scrambling can backfire. The Scrambler can become as confused as you are.

6. Watch for the mistakes you are sure to make.

Your key defense is to never negotiate an issue until you understand it. Practice and courage help unscramble the Scrambler.

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