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Tactic #39 - Take It or Leave It
Summary: Sending the message that if the
counterpart doesn't agree to the offer, the negotiation is finished.
An effective tactic used by negotiators is saying,
“This is our best and final offer. Take It or Leave It.” This
tactic, which is commonly used by labor unions, is designed to
discourage additional negotiation. Making a fixed offer sends the
message that if the counterpart does not agree, there will be no further
discussion. A real test of egos ensues when a counterpart replies,
“We’ll leave it. We are walking out of the negotiations.”
Example
The mechanics at a major airline have gone without
a contract for several years because the mechanics’ union and management
have not been able to agree on salary. Finally the union demands a
salary package and says, “That is our best offer. Take It or Leave It.”
Counter
One effective counter to Take It or Leave It
is Deflecting an Answer with a Great Question. In the example
above, management might ask, “What will happen if we do not get this
dispute resolved?” This tactic is designed to force the union
negotiators to face the consequences of management’s walking out of the
negotiation. A second option might be to use the tactic of Calling
Your Bluff. Management could walk out or tell the union leaders,
“Okay then, you might as well leave now.” The effectiveness of this
tactic depends on which side is least committed to the relationship.
Another possible tactic is Asking an Open-Ended Question to
verify the validity of the union’s threat. For example, the airline
negotiator might ask, “If you strike, what action do you think the
federal government will take?” Finally, management could simply ignore
the union’s Take It or Leave It tactic and continue negotiating.
This is probably the best approach when the goal is to build a win-win
relationship based on trust.
This tactic is one of 101 strategies and tactics
featured in The Only Negotiating Guide You'll Ever Need, by Peter
Stark and Jane Flaherty.
To view this month's issue of The Master
Negotiator, the premiere on-line newsletter for negotiators,
follow this link:
The Master Negotiator, Volume 2, Number 3 Questioning Skills, Part I
To view previous Negotiating Tactics of the Week,
follow this link:
Negotiating Tactics of the Week
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