Offering Unrealistic Options in a Negotiation

If you plan to gain leverage in a negotiation by threatening for example to move to a competitor, be aware that the vendor has most probably has been hearing this for years from customers, and it has no real impact on negotiations if it is not backed in practice within the organization.

When you threaten something that both sides know is not realistic, you convey the message that you have run out of points of leverage. Think carefully about where you can apply pressure when negotiating, making sure any tactic you use is both part of your BATNA and is also a realistic option. Both sides of the negotiation table know that at the end of the negotiation process, a new agreement will be signed. Both sides know that adjustments can be made. Your counterparts representatives want to sign an agreement, but more, they want to show their managers that they have increased the agreement in size and expenditure above the previously signed one. You can leverage this knowledge and other information you have to make the terms better and increase the discounts you receive.