* Context of Negotiation: The phrase "This is our best and final offer" is a strong statement in negotiations.
* Risk Assessment: This tactic can abruptly end negotiations if the other party is not willing to accept the terms.
* Alternative Readiness: Using this tactic effectively requires the buyer to have a viable alternative in case the offer is rejected.
* Strategic Use: It should be employed when the buyer is confident that the offer is competitive and fair, and when there is leverage from alternative suppliers or options.
* Potential Drawbacks: It might strain relationships if perceived as inflexible or final.
* Conclusion: While it can shorten negotiations, it carries significant risk and should be used judiciously with alternative plans in place.
References
* Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William Ury.
* Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond by Deepak Malhotra and Max H. Bazerman.