Supposing your time is limited and you don’t feel like negotiating. You approach the first salesman you see and say, “Look … you want to sell this refrigerator, and I want to buy it. I’ll give you $450.00 right now, take it or leave it.”
When you turn on your heel and walk away, will the salesman follow you out to the street? Nope, I don’t think so. Why? Because he has nothing whatsoever invested in a relationship with you or in the overall transaction. Furthermore, he resents your curt approach. The key to making an ultimatum prevail is always the extent to which the other side makes an investment of time and energy.
Keeping this principle in mind, let’s try another way. You casually walk into the Large Appliances Department at two o’clock on a Monday afternoon when floor activity is at a minimum. You say to the salesman, “I’m interested in seeing your entire line of refrigerators!” From two to four have him show you every model on the floor, explaining all the benefits.
Finally you remark, “Before I make up my mind, I’ll have to come back tomorrow with my spouse.”
The salesman has now wasted two hours of his time on you.
On Tuesday, again at two o’clock, you arrive with your spouse. You seek out the same salesman. You repeat the process of examining every model on the floor. Finally, you say to him, “Before we make up our minds, we’d like to come back with a refrigerator engineering specialist: my mother-in-law. She knows a lot about these things. See you tomorrow afternoon!”
The salesman now has four hours invested in you.
On Wednesday, at the appointed hour, you walk into the department with your spouse and mother-in-law. You induce the salesman to repeat his demonstrations till four, at which time you mumble, “Hmmmm … know what? I can’t quite make up my mind!”
The salesman now has six hours of his life invested in you.
On Thursday afternoon, as expected, you walk in alone and say, “Hi there—remember me? I’m interested in buying a refrigerator.”
The salesman will make a wry face and say, “I should hope so!”
You continue, “Look … I only have this $450.00 plus a book of matches, a fountain pen, and eight cents in change. I just love this model. Please … maybe we can make a deal.” Then if he doesn’t respond immediately, you shrug, pivot, and slowly start for the exit.
Will the salesman follow you? Yes. He has an investment in the situation, and he wants some return on the effort he has expended. He’ll probably mutter, “Okay, okay! Enough is enough. It’s a deal.”
Why does he take your “Take it or leave it” offer (though you didn’t use those words)? Because you’ve set up your ultimatum in such a way that its acceptance is virtually guaranteed. You’ve made the ultimatum palatable and have forced the salesman to spend an inordinate amount of time with you. He’s doing a cost-benefit analysis of the situation and inwardly groaning, “I’ve got six hours invested in this meatball! But the devil known is better than the devil unknown. Who knows what else is lurking out there on the street?”