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How to React To Ultimatums from Negotiating Partners
The “last word” is a well-loved tactic used in business negotiations. Your negotiating partner gives you an ultimatum and tells you what their last offer is and you can either accept this or admit that the negotiations have failed. In this situation it is important to be able to distinguish between when the client is bluffing and when they are serious. If they are bluffing, you may be able to squeeze more out of them. If they are not, this is, in fact, your last chance to reach an agreement. Here are a few sales training tips for difficult situations like these:
How are they expressing themselves? Are they speaking in terms of absolute figures (1,000 pounds and not a penny more!”) or roughly (“I can’t offer you more than 11 to 12,000")? Are they speaking in strict, uncompromising terms (“You will have to accept that if we are to make any headway!”).
Does their position set any conditions? The “last word” is interpreted by the way they express themselves (in vague/strict terms).
Is the “last word” in-keeping with your negotiating partner’s previous demands and/or offer, or is it far removed from these? If it is the latter, you still have a bit of negotiating leeway.
Have they given you an ultimatum after a long period of negotiating or relatively early on? An ultimatum delivered fairly early on is often tactical in nature and therefore accordingly flexible.
Does your negotiating partner sound credible or does their behaviour appear contrived? Do they use set phrases like “in all seriousness” or “without wanting to exaggerate”?
Does their last offer seem spontaneous in nature or planned? “Last words” which are particularly precise and detailed indicate that they are a tactical maneouvre!
Does the offer correspond to your negotiating partner’s true interests? Can they really afford to allow the negotiations to fail?
Is the “last word” really the only conceivable result for your negotiating partner or are there other acceptable alternatives?
Do they actually have the status or authority to break off negotiations without achieving a result?
Ultimatums initially bring negotiations to a dead end. The following sales training tips will help you to break the impasse:
Accept their “last word” as clear and unmistakable, but not as the end of the matter.
Give your negotiating partner the opportunity to rethink their position and make a new suggestion.
Introduce new dimensions into the discussion (such as concessions in other areas), which allow your negotiating partner to withdraw their ultimatum without losing face.
Make it clear that it can only be advantageous for both sides to continue with the negotiations.
Ask your negotiating partner to at least listen to what you have to say.
Simply pass over the ultimatum if you think it is a bluff and change the subject.
Ask for some time to think about the ultimatum so that you can refer back to your superiors.
If your positions on price are not too far apart, offer your negotiating partner the 50:50 solution: you split the difference and agree on a middle figure.
Adjourn the negotiations so that both sides can have a chance to think about things.
When faced with an ultimatum don’t just give up. Use the techniques described in this article to help you and to learn more negotiation techniques attend one of our sales training courses.
