Negotiating Tips , Business Negotiation , Negotiation Tactics September 02, 2011

Take it or leave it?

Many times during a business negotiation we are tempted to say to the other party “take it or leave it. ” Generally, this happens when we are frustrated or have been going around the same issue for a long time...

Many times during a business negotiation we are tempted to say to the other party “take it or leave it.” Generally, this happens when we are frustrated or have been going around the same issue for a long time. The truth is that “take it or leave it” is a good tactic in several situations. Sometimes you do need to issue an ultimatum.

According to Dr. Chester Karrass there are at least five situations where it makes sense to use the take it or leave it tactic:

1. When you don’t want to encourage further tinkering with a deal

2. When if you drop the price in this negotiation it will affect your pricing overall

3. When the other party can’t afford to leave it.

4. When all customers are accustomed to paying the price

5. When you can’t afford a loss.

The problem with using the “take it or leave it” tactic is that it can create hostility, as the other party feels backed up against a wall. To minimize the potential for bad feelings, make sure to not use the actual phrase “take it or leave it,” which is pretty charged. Find a way to say this without using those words. Also, watch your timing. It is best to use this tactic later in the negotiation than earlier.

How often do you issue this ultimatum to the other party? Do you find it works?

Karrass wishes our readers in the United States a very pleasant and relaxing Labor Day weekend. We will be back here on Wednesday, September 7th with more insights and tips on business negotiations.
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