This approach involves the buyer saying something like, “Unless you agree immediately to a price reduction of 20 percent, we’ll have to look elsewhere for a supplier.” In this setting, the consequence could be serious. The correct response depends upon the outcome of the assessment of the balance of power conducted during the preparation. If the buyer does have a number of options, all of which offer the same kind of benefits as yours, then you may have to concede. If your product offers clear advantages over the competition, then you may be able to resist the challenge.