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1. Be the first to offer: This allows you to set the initial price range and puts the burden of proof on the other party to negotiate it.
2. Understand the psychology of negotiation: People tend to focus on the first indicator of value given, so setting the initial price can be advantageous.
3. Maintain professional relationships: The goal of negotiation is not just to get what you want, but also to maintain and build relationships in the process.
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Exchanging offers usually consists of an initial proposal and then a bit of haggling back and forth until you reach a price in a mutually agreeable zone. The question of who should offer first is decided in some cases, like in buying a home with a list price, but undefined in others. When given the opportunity, strongly consider being the first to offer. Though contrary to some negotiation advice, Shell sees many benefits in this approach. These include being the first to nail down a range for price. Research shows that humans tend to focus on the first indicator of value that is given. If the opposing party were to name a price far below your target, it would be an uphill battle to get them in the range you desire. On the contrary, the burden of proof lies on them to negate the range you suggest if you are the first to offer.
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Ever wonder what makes a great negotiator? Read this book summary to learn about the latest social science and psychology research on negotiation. Get...
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