Business Negotiation June 15, 2016

Take It Or Leave It!

"Take it or leave it" is a negotiation. And, there are many bargaining situations in which it is appropriate...

"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.
Upcoming seminars
Effective Negotiating
Effective Negotiating
Effective Negotiating
Effective Consensus: Negotiating with Co-Workers and Teams
Search for seminars near you
June 04, 2020

Success in negotiation starts with understanding what kind of negotiation you are dealing with. Fundamentally, every negotiation is fundamentally about finding and distributing value...

Read More Group 7
April 06, 2020

Use this article as a guide to help you think in new ways to renegotiate for better contracts and stronger partnerships, whether in business or in life. Never be afraid of sitting down at the table to set new terms...

Read More Group 7
January 12, 2020

Happy Holidays to you and yours! Chances are very good that you had to negotiate with at least a few people to figure out what your holiday plans would be this holiday season, and chances are good that it didn’t all go perfectly smoothly. If you are all still on speaking terms, that’s probably because you utilized some of your best conflict resolution tools...

Read More Group 7