January 8, 2024

HOW DO YOU RESPOND TO A "TAKE IT OR LEAVE IT" DEMAND?

What do you do when the other party gives you a firm but polite “take-it-or-leave-it”? There are options available. My advice is to test it hard—their position may not be as firm as it looks.

The best approach to testing a “take-it-or-leave-it” is to change the nature of the deal. Broaden the project or reduce its size; change the quantities (more – less); modify the quality levels; more or fewer services; extended or shorter delivery periods.

If you are working on a package deal think about modifying the product mix to include new items or spare parts or training. Mix items that are not “take-it-or-leave-it” with those that are. Then negotiate the agreement.

In addition, you might want to try any of the following negotiating countermeasures to test the firmness of the other person’s “take-it-or-leave- it” position:

1. Agree that it appears you are at a negotiating impasse, and walk out. (Don’t forget to plan your walking back in strategy.)
2. Protest to higher management. (Be aware that there may be repercussions.)
3. Ask the other person put their “take-it-or-leave-it” in writing—you want to discuss it with others.
4. Talk on as though you never heard the “take-it-or-leave-it” demand.
5. Determine whether or not there are some parts of the deal you can do without (i.e. things you can do for yourself, or get from others) that will reduce the scope of the deal subjected to the “take-it-or-leave-it” demand.

The key to testing “take-it-or-leave-it” is to find a face-saving way by which the other party can retreat from this awkward position. If you can, the problem has a chance to evaporate. Most times you’ve got nothing to lose by testing the “take-it-or-leave-it.” It’s worth a hard try.