4 ms·

"First rule of negotiation: the first guy to give a number loses" It is not possible to stress this enough. People should print this out in 72pt font size and

"First rule of negotiation: the first guy to give a number loses" It is not possible to stress this enough. People should print this out in 72pt font size and hang it over their bed.

dmfdmf 17y ago
Its a good rule but not always true. It depends on what price is being negotiated, e.g. salary, car price, etc. If someone throws out a number that is clearly too high (seller) or obviously too low (buyer) just to get the ball rolling there is no loss in negotiating strength from that, both parties know they are still far apart so nothing has changed. Also, vague numbers like "around $60K" are less committal, express common ground and more likely to be attempts to get the ball rolling. Another important rule is do not negotiate with your self. In other words, if you made an offer don't raise it until the other guy makes a counter offer. This is negotiation 101 but its very easy to get pressured to raise your offer without a counter offer. As for salary negotiations, I read an article once that a company's first solid offer (which is their low starting point) is somewhere around %20 below what the company is actually willing to pay you. So add 25% to the company's first offer and if that number is not near what you think you are worth you need to find someone else to work for or reevaluate the market value of your skills.
deyan 17y ago
As a matter of fact this is incorrect. There is a ton of research to suggest that whoever makes the first step and proposes and initial scenario, comes out with a better outcome. That is because the first number thrown out frames the discussion. Of course, it doesn't have to be a number, it could be a negotiation for something else, but the rule and research apply just as well.
- patio11 17y ago
  There is some research by behavioral economists about price anchoring. Like most research in behavioral economics, it is very useful at predicting the behavior of college students in novel circumstances. Many of the rest of us will have considered our likely market value prior to arriving at the salary negotiation, perhaps via extensive research or receiving competing offers, and thus not be unduly influenced by the first number we hear. ("$20,000? Holy cow! That's more money than I've ever had in my whole life! I'll take it!" -- not what I said in response to what my professor thought I would consider a very tempting offer.)
run4yourlives 17y ago
Negotiation with people like you is easy. Because you are so fixed on that first number, I simply pad my desired number and throw out that right away. Now you feel like you won because you talked me down from my already inflated number, and I feel the same because I knew it was inflated anyway. Reality is I got exactly what I wanted.
- wlievens 17y ago
  Maybe you're right, in which case I still have a lot to learn.

"First rule of negotiation: the first guy to give a number loses" It is not possible to stress this enough. People should print this out in 72pt font size and hang it over their bed.

dmfdmf 17y ago

Its a good rule but not always true. It depends on what price is being negotiated, e.g. salary, car price, etc. If someone throws out a number that is clearly too high (seller) or obviously too low (buyer) just to get the ball rolling there is no loss in negotiating strength from that, both parties know they are still far apart so nothing has changed. Also, vague numbers like "around $60K" are less committal, express common ground and more likely to be attempts to get the ball rolling. Another important rule is do not negotiate with your self. In other words, if you made an offer don't raise it until the other guy makes a counter offer. This is negotiation 101 but its very easy to get pressured to raise your offer without a counter offer. As for salary negotiations, I read an article once that a company's first solid offer (which is their low starting point) is somewhere around %20 below what the company is actually willing to pay you. So add 25% to the company's first offer and if that number is not near what you think you are worth you need to find someone else to work for or reevaluate the market value of your skills.

deyan 17y ago

As a matter of fact this is incorrect. There is a ton of research to suggest that whoever makes the first step and proposes and initial scenario, comes out with a better outcome. That is because the first number thrown out frames the discussion. Of course, it doesn't have to be a number, it could be a negotiation for something else, but the rule and research apply just as well.

patio11 17y ago
There is some research by behavioral economists about price anchoring. Like most research in behavioral economics, it is very useful at predicting the behavior of college students in novel circumstances. Many of the rest of us will have considered our likely market value prior to arriving at the salary negotiation, perhaps via extensive research or receiving competing offers, and thus not be unduly influenced by the first number we hear. ("$20,000? Holy cow! That's more money than I've ever had in my whole life! I'll take it!" -- not what I said in response to what my professor thought I would consider a very tempting offer.)

run4yourlives 17y ago

Negotiation with people like you is easy. Because you are so fixed on that first number, I simply pad my desired number and throw out that right away. Now you feel like you won because you talked me down from my already inflated number, and I feel the same because I knew it was inflated anyway. Reality is I got exactly what I wanted.

wlievens 17y ago
Maybe you're right, in which case I still have a lot to learn.