You may feel that the first person to throw an offer is at a disadvantage in the negotiation. But is that really the case?
Don’t be afraid of being agressive in your first offer. People who make first offers get better terms that are closer to their target price. It is based on the principle of anchoring. Whatever the first figure is on the table, all parties involved will start to work around it. So, be the first.
The higher the price, the more the buyer focuses on the pros / positives. The lower the price, the more he will focus on the cons / downsides.
ACTIVITY
Can you think of an example where a lower price makes you focus on the negatives?
Can you think of an example where a higher price makes you focus on the positives?
How high should your first offer be?