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.”
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