Effective Counter Negotiation Tactics to Use when Buyers Lead with the First Offer [Video]

One frequently discussed issue by negotiation experts is when you should make the first offer in a negotiation. Conventional wisdom is to never make the first offer in a negotiation. After all, by making the first offer, you risk “showing your cards” too early and leaving money on the table. On the other hand, there are many cases where it is to your advantage to make the first offer. So how do you know?

Why Is the First Offer So Important?

The benefit of making the first offer is that it acts as an anchor. Anchoring in negotiation is a well-documented cognitive bias that describes the human tendency to rely too heavily on the first piece of information offered (the “anchor”) when making decisions.

A classic case of anchoring is the sticker price of a new car. It is common knowledge that the price you pay for a car is less than the price on the window …