Secret 4 - Who shall make the first offer?

Black BELT negotiators are short-cutting argumentations Simply by making clear proposals. It makes sense, right!

But we justify our proposal, we say what we don't want, not what we want. And above all, we don't know the First Offer rule.

Our studies show that you will be twice as likely to get your proposal approved if you make an anchored offer.

So how do make a perfect offer? When shall I make it and what are the exceptions to manage?


PASs your Order

PASs your order:

  • Positives. Use positive verbs; don't say what you don't want.
  • Anchored. Make challenging demands, but ones that you can justify.
  • Specific. Factual, precise, concise and focused on the objective.

Why

Why Positive?

According to Marshal Rosenberg, requests are more effective when we use positive action verbs (3). Indeed, saying what we don't want, doesn't give information about what we want, a negative request ("don't do this", "don't say that") can even be interpreted in different ways by your interlocutor.

Why Anchored?

Thanks to the anchoring bias, we now know the importance of the 1st request, as well as the impact between the demand (anchoring) and the reference point. The art consists in making high demands but not excessive demands (4).

Why Specific?

Several studies show that people with a specific request obtain very significantly better results than others (1). Besides, make specific requests, the anchoring effect will be more effective, and you increase your chances of getting an agreement (2). Be concise, requests that are too long are complicated for the recipient of the request to manage, as well as requests with digressions or related sentences, and when we try to justify or explain our comments.

How

Example.

"I'll offer you a one-year contract for 250k, which will give you access to our entire portfolio of services."

Summary

  1. You can prepare your first demand in the Framing part of your Preparation Checklist.
  2. Make PAS demand.
  3. Ask for an answer.

References

  1. Halvorson, H. G. and Ph.D. (2011) 'Nine Things Successful People Do Differently', Harvard Business Review Press.
  2. D. Loschelder, D., Friese, M., & Trötschel, R. (2017). How and why precise anchors distinctly affect anchor recipients and senders. Journal of Experimental Social Psychology, 70, 164-176. https://doi.org/10.1016/J.JESP.2016.11.001
  3. Rosenberg, M. B. (n.d.). Nonviolent communication : a language of life.
  4. Oesch, J. M., & Galinsky, A. D. (2003). First Offers in Negotiations: Determinants and Effects. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.399722

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