Opening and Anchoring
How You Start Shapes Everything
The opening of a negotiation sets the tone, establishes expectations, and often determines the range in which the final agreement will land.
First impressions and first numbers have outsized influence. Understanding this gives you a significant advantage.
The Anchoring Effect
How It Works
The first number stated in a negotiation tends to anchor the entire discussion. Subsequent offers and counteroffers adjust from that anchor, often insufficiently.
If a seller opens at $100,000, counteroffers might be $85,000, $90,000, $95,000 — all anchored to the original number.
If the same seller had opened at $120,000, counteroffers might be $100,000, $105,000, $110,000.
Same underlying value. Different anchor. Different outcome.
Why It's So Powerful
Anchoring is a cognitive bias. Even when people know an anchor is arbitrary, it still influences their judgment.
Studies show that random numbers (like the last digits of a phone number) can anchor unrelated estimates. In negotiation, where numbers seem relevant, anchoring is even more powerful.
The Implication
If you can set the anchor, you shape the negotiation's frame. If they anchor first, you need to counteract it.
Should You Make the First Offer?
Arguments for Going First
You set the anchor. The most powerful reason. Your number becomes the reference point.
You show confidence. Making an offer signals you've done your homework and know what you want.
You shape the discussion. Your opening offer defines what's being discussed.
Arguments for Letting Them Go First
You might be surprised. Sometimes they offer more than you planned to ask for.
You gather information. Their opening reveals their expectations and possibly their BATNA.
You don't anchor too low. If you undervalue what you're offering, going first locks that in.
The General Rule
Go first when you're well-prepared and confident in the market value. Your research tells you the right range, and you can anchor advantageously.
Let them go first when you're less certain. If you don't know what's reasonable, their opening provides information.
In salary negotiations where you've researched the market, going first (or redirecting to your range) often helps. In novel situations with high uncertainty, gathering information first may be wiser.
Making Effective First Offers
Aim High (But Credibly)
Your first offer should be ambitious but defensible.
Too high: Insults the other side, signals you're not serious, or makes you look naive.
Too low: Leaves money on the table, can't be raised.
Just right: At the high end of what's reasonable, supported by rationale.
Research suggests making the first offer slightly more aggressive than your target, leaving room to concede while still achieving your goal.
Be Specific
Specific numbers seem more researched and anchor more effectively than round numbers.
"$83,500" sounds more informed than "$85,000."
Provide Rationale
Anchor strength increases when the number is justified.
"Based on market data for similar roles in this region, $95,000 is consistent with my experience level."
"Comparable homes in this neighborhood have sold for $450,000-$480,000 in the past three months."
Open with Confidence
How you deliver the opening matters. Hesitation or apology weakens the anchor.
Deliver your number confidently, as if it's obviously reasonable (because you've prepared to make it so).
Counteracting Their Anchors
Don't React Emotionally
When they anchor high (or low), stay calm. Don't let surprise or outrage show.
Don't Negotiate Against Their Anchor
If they say $60,000 and you counter with $65,000, you've accepted their frame. Now you're negotiating between $60,000 and $65,000.
Re-anchor
Make your own anchor. If they say $60,000 and you believe the role is worth $85,000, don't say $65,000. Say $85,000.
"Based on my research and experience, I'm targeting $85,000."
Now the discussion is between $60,000 and $85,000, not $60,000 and $65,000.
Challenge Their Anchor
Ask them to justify their number.
"How did you arrive at that figure?" "What data are you using?"
This forces them to defend an anchor and potentially reveal weaknesses.
Dismiss Extreme Anchors
If their anchor is unreasonable, name it.
"That's quite far from market rates. Let's focus on what the data shows."
Setting the Tone
Opening Questions
Before numbers, ask questions that set a collaborative tone:
"Before we discuss specifics, help me understand what's most important to you in this negotiation."
"What would make this a successful outcome from your perspective?"
Framing
Frame the negotiation as joint problem-solving:
"I'm confident we can find something that works for both of us."
"Let's figure out how to make this work."
Rapport Building
A few minutes of non-negotiation conversation can build rapport and set a positive tone.
But don't overdo it or seem manipulative. Genuine connection is better than tactical friendliness.
Opening in Different Contexts
Salary Negotiation
If asked for your requirements early: "I'm looking for something in the $X to $Y range, but I'm most interested in finding the right fit. What range did you have budgeted?"
Buying
"I've researched similar items, and $X seems fair. What's your best price?"
Selling
"Based on recent comparables and condition, I'm listing at $X."
Business Deals
"We typically see deals like this in the $X to $Y range. Where does that fit with your expectations?"
AI Prompt: Opening Strategy
Help me plan my opening for this negotiation.
The negotiation: [Describe]
What I want: [Your goal]
My research shows: [Market data, comparables]
Their likely position: [What they might want]
Help me:
1. Decide whether to make the first offer
2. Determine an appropriate opening offer (ambitious but credible)
3. Prepare rationale for my opening
4. Anticipate their opening if they go first
5. Plan how to re-anchor if their opening is unfavorable
6. Script my opening statement
What's Next
You've opened. Now comes the back-and-forth of offers and counteroffers.
Next chapter: Making and receiving offers — the mechanics of proposals, counteroffers, and concessions.