Question
The concept of 'extreme anchor' in negotiation challenges traditional negotiation practices by shifting the focus from a single, fixed point to a range with an extreme end. This tactic can lead to better outcomes for the negotiator. For instance, in salary negotiations, instead of stating a single desired salary, a negotiator might state a range with an extreme high end. This can result in a higher final offer, as the other party is anchored to the higher number. This approach challenges the traditional practice of starting with a single, fixed point and negotiating down from there.
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Another tactic is to avoid mentioning a number or price—let your counterpart be the first to do so. Alternatively, you can allude to a range, but one with an extreme anchor. This can work really well in salary negotiations. Columbia Business School psychologists found that job applicants who named a range received significantly higher overall salaries than those who offered a single number. If your goal is $60,000, give the range of $60,000-$80,000 and they'll likely come back with $60,000—or higher. Give the number $60,000, however, and they'll likely offer you less than that.
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