MANAGING UNREASONABLE EXPECTATIONS IN NEGOTIATIONS

“Who should make the first offer? “Are we put at any disadvantage if we do or if we don’t make the first offer?” “How shall we respond if they make a first unreasonable offer?” These are questions we are constantly asked when advising clients in negotiations.

The conventional theory upon which these questions are based, is that by putting out a first offer, you have the advantage of anchoring expectations around that offer, and the further the other side deviates from that “anchor” the more unreasonable they appear. They are therefore limited in their range of deviation by that anchor, or so the theory goes.

In our experience however, this seldom works. Usually the other side becomes defensive and emotional. They skillfully perform the artful “flinch”, followed by a brazen, equally extreme and unrealistic counter-offer.

So our answer to the “First Offer Dilemma” is: “It really doesn’t matter as long as you possess and apply a potent negotiation process, refined technique and practiced skill!”