5 ms·

This comes down to negotiation theory. Is it better to make the first offer, or wait for the other person to make the first offer? I used to think "The first

This comes down to negotiation theory. Is it better to make the first offer, or wait for the other person to make the first offer? I used to think "The first person to mention a number loses", but after taking a negotiations class and applying some of the concepts, I learned the power of anchoring the negotiation by mentioning the first number. After the first number is mentioned, you are now negotiating around that range. This has proven to be very effective for me.

fugue88 18y ago
I've read that way the number is stated also affects the range. For example, 100 has a large negotiating range than 90, and 90 larger than 92. I haven't had a change to use this yet, though....
- snowbird122 18y ago
  I haven't thought about that, but it definitely makes sense. Do you have a source on that?
  - notaddicted 18y ago
    I remember reading that as well. Here is what Google turned up: http://www3.interscience.wiley.com/journal/119410422/abstract?CRETRY=1&SRETRY=0 http://www3.interscience.wiley.com/journal/119410422/abstrac... EDIT: information wants to be free etc. http://drop.io/precision_of_the_anchor_etc http://drop.io/precision_of_the_anchor_etc
timr 18y ago
You can't "anchor" a corporation. It doesn't have feelings or emotions -- it has a big table of pay ranges for people with X years of experience and/or education. Your strategy works if you name a "negotiable" number that is higher than what you really want to make, but near the employer's upper bound for the position. Guess right, and you'll be negotiated down to a number that is mutually acceptable. Guess too low, and you'll be under-paid. Guess too high, and you'll be bounced without further negotiation. No matter what you do, the onus is on you to guess correctly the numbers on the employer's sheet. That's why saying the first number is bad when you're negotiating with a more knowledgeable opponent. If you've had a lot of success with the "anchoring" method, it's likely because you're not coming close to the upper bound of the pay range that your employers had pre-determined for their positions.
- tptacek 18y ago
  Caution: you're not negotiating with a corporation, you're negotiating with an HR person, whose job performance is tied in part to how well he/she negotiates.
  - timr 18y ago
    That's true, but HR people don't generally have the authority to negotiate outside of narrow parameters. They're recruiting for particular jobs, with particular salary ranges.
    - tptacek 18y ago
      You're probably right. Just so you know though, one of the Big Lessons I've had selling to big companies is to figure out: (1) The times you are asking your counterpart to spend "her own money" (from her budget, outside her range, etc) (2) The times you're asking your counterpart to spend play money. It's always helpful to remember when you're hesitant to ask someone at a big company to pay you for your product or service that they aren't paying you out of their own pocket.
      - deleted 18y ago
        [deleted]
- chollida1 18y ago
  > Guess too high, and you'll be bounced without further negotiation. This hasn't been my experience. My experience has been if they want you then they'll find a way to make it work. If you don't fit in one grid then they'll just bump you up to the next grid.
  - chris11 18y ago
    That's reassuring.I was left with the impression from one of my job interviews that they were looking for someone in a set price range, and would have bounced anyone who asked for more. Of course this job was basically a minimum waged, low skill job I had in high school. Maybe its different for high skilled jobs.

fugue88 18y ago

I've read that way the number is stated also affects the range. For example, 100 has a large negotiating range than 90, and 90 larger than 92. I haven't had a change to use this yet, though....

snowbird122 18y ago
I haven't thought about that, but it definitely makes sense. Do you have a source on that?
- notaddicted 18y ago
  I remember reading that as well. Here is what Google turned up: http://www3.interscience.wiley.com/journal/119410422/abstract?CRETRY=1&SRETRY=0 http://www3.interscience.wiley.com/journal/119410422/abstrac... EDIT: information wants to be free etc. http://drop.io/precision_of_the_anchor_etc http://drop.io/precision_of_the_anchor_etc

timr 18y ago

You can't "anchor" a corporation. It doesn't have feelings or emotions -- it has a big table of pay ranges for people with X years of experience and/or education. Your strategy works if you name a "negotiable" number that is higher than what you really want to make, but near the employer's upper bound for the position. Guess right, and you'll be negotiated down to a number that is mutually acceptable. Guess too low, and you'll be under-paid. Guess too high, and you'll be bounced without further negotiation. No matter what you do, the onus is on you to guess correctly the numbers on the employer's sheet. That's why saying the first number is bad when you're negotiating with a more knowledgeable opponent. If you've had a lot of success with the "anchoring" method, it's likely because you're not coming close to the upper bound of the pay range that your employers had pre-determined for their positions.

tptacek 18y ago
Caution: you're not negotiating with a corporation, you're negotiating with an HR person, whose job performance is tied in part to how well he/she negotiates.
- timr 18y ago
  That's true, but HR people don't generally have the authority to negotiate outside of narrow parameters. They're recruiting for particular jobs, with particular salary ranges.
  - tptacek 18y ago
    You're probably right. Just so you know though, one of the Big Lessons I've had selling to big companies is to figure out: (1) The times you are asking your counterpart to spend "her own money" (from her budget, outside her range, etc) (2) The times you're asking your counterpart to spend play money. It's always helpful to remember when you're hesitant to ask someone at a big company to pay you for your product or service that they aren't paying you out of their own pocket.
    - deleted 18y ago
      [deleted]
chollida1 18y ago
> Guess too high, and you'll be bounced without further negotiation. This hasn't been my experience. My experience has been if they want you then they'll find a way to make it work. If you don't fit in one grid then they'll just bump you up to the next grid.
- chris11 18y ago
  That's reassuring.I was left with the impression from one of my job interviews that they were looking for someone in a set price range, and would have bounced anyone who asked for more. Of course this job was basically a minimum waged, low skill job I had in high school. Maybe its different for high skilled jobs.