Today’s show is all about Negotiation skills in business, specifically Making the first offer. Have you ever wondered if you should make the first offer? What happens if the other side makes a crazy first offer? How should you respond? This show will help you handle all of that and more. Season 2 Show 6 Episode 128
Everyone thinks they are good at negotiation. The truth is, if you have a system, negotiate often, set your strategy in advance and do your research, you will be successful.
Negotiation is both art and science. During the next week, we are going to be highlighting several different negotiation skills and negotiation strategy. My goal in doing these shows is to help you with negotiation in business but also to help you with working out common issues in everyday life.
Today we are addressing first offer strategy.
There are only three things that can happen with a first offer in any negotiation.
- Let the other side make the first offer
- Make an extreme first offer
- First, Best, Final
In this show on negotiation skills in business communication, we explore each of those three strategies.
Let the Other Side Make the First Offer
This is ideal. It helps set a frame for the extreme end of the negotiation. You’ll often see anxious people make a first offer. Occasionally, experienced negotiators will throw out an extreme number to get things started. This is not necessarily a bad thing. If you can, getting the other side to make the first offer will help you gain leverage.
Make an Extreme First Offer
If you have to make an offer, make it extreme. The goal is to shock the other side and set a frame that is so one-sided any concession in the future is perceived as major. This also has a psychological impact. It conditions your counterpart to look for a highly slanted approach in your negotiation techniques.
First, Best, Final
This is included in making offers as a strategy in negotiation, but it is not really an offer. You simply tell them to take it or leave it. You may want to negotiate other points but you’re not going to bargain on the price.
When it comes to negotiation skills in business, first offer strategy is critical. Be sure to review these negotiation tips and tricks before your next negotiation session.