Firms should never provide a 'final offer' in sales negotiations
Companies could lower their price when asked for a final offer
Firms should never provide the other side with their 'best and final offer' in sales negotiations, it has been claimed.
Some companies still use an old negotiation skill in which they will begin talks by asking the other side to name their final offer to try and start discussions on the front-foot.
Dr Jim Anderson, a US-based sales negotiator, claimed negotiators are likely to panic when faced with this tactic and lower their price so as not to anger their counterparts.
He wrote on ezinearticles.com: "The problem with this is that despite what the other side said, the offering of this lower price does not result in a deal. Rather it just provides a point for the negotiations to start at.
"Once the other side sees how much you were quickly willing to come down in price, they'll know that there is more lowering that you can be made to do."
Dr Anderson advised firms to counter this strategy by not giving the other side their final offer and instead detailing why their proposition in valuable.