To Start Negotiations, Someone Must Make the First Offer. Should It Be You?

Make the first offer when you are well prepared and have reliable information. You will have an advantage because it becomes a strong psychological anchor point.

If you are not well prepared, then get prepared. While it is not to your advantage to make the first offer when the other side has more information than you do, this doesn’t mean you give up.

 “Rather, this is your opportunity to level the playing field by gathering more information about the item, the industry, or your opponent’s alternatives to the negotiation. The well-prepared negotiator will feel confident about making the first offer and anchoring the negotiation in his favor. “ (Adam Galinsky)

Verify your counterpart is ready to reach an agreement by asking closed-end or a yes/no question.

A positive response says you are free to make an offer.

• Are you comfortable with what we’ve discussed?

• Do you have any other questions?

• Do you have any issues or concerns about timing/terms/cancellation clause?

Negotiation Tip

Research shows negotiators who make the first offer come out ahead. Make the first offer when you are well prepared.  If you lack access to vital information this does not mean you should not negotiate – you should. Simply apply a healthy dose of skepticism when your counterpart makes the first offer by asking “what is that price based on?