Negotiation TacTricks

#7 Take It or Leave It; Ultimatum; Walk-Out

Pretend that there is no alternative, other than cancelling the deal

The negotiator makes a take-it-or-leave-it offer, apparently bringing negotiations to a close.? Real ultimatums are unusual unless the negotiation has begun to close down naturally and you have reached the end of the road. ??

Bluffing about ultimatums is dangerous because, if the bluff is called, the negotiator has to crawl back with a weaker negotiating position.? More often, a negotiator appears to deliver an ultimatum but actually adds the small word, ‘unless….? You should listen very carefully to whatever follows as it could be important new information.

If a Walk-Out occurs without any way back, it is likely that the negotiator had no intention of reaching an agreement, no matter what terms were offered.? This may be because the negotiation was a sham that supported some other objective (such as getting a lower price from an incumbent supplier) or because the situation has significantly changed since the start of negotiations.

The only example that I have seen that resembled an actual Take-It-or-Leave-It happened when a supplier discovered that the technology they were developing for us did not work.? Their negotiating position hardened to an extent that was irrational.? They did not walk out of the negotiations but it seemed they hoped that we would.? ?If you see irrational or obtuse intransigence in a negotiation, even if it is not a complete ultimatum, you should suspect something more than a negotiating tactic

Counters:

1. Explore the meaning of their statement and the reasons behind it.? Listen very carefully to exactly what is said.? Ask for detailed clarification.?
2. Call the bluff.? Accept it.? Wait for them to come back.? Then exploit their weakness
3. If it was a real ultimatum, do not try to claw your way back.? The negotiation is over.? However, although you have reached the end of one road, there may be another.? If so, make it clear that the old deal is dead; this is a new negotiation about a new deal.?
4. In the example above, of the supplier whose development program had failed, the problem was revealed only by moving the discussion from commercial back to technical.? Technical experts were able to talk about the problem more openly than commercial negotiators
5. As with other tactics, if the negotiator’s behaviour has been unprofessional, it is reasonable to escalate this within their organisation, and ask if you can deal with someone else.