MAKING OFFERS AND COUNTEROFFERS / 405Setting your offer
Whether you present your offer first or
second, how high should your offer be?
Former US Secretary of State Dr. Henry
Kissinger believes that a negotiator is
better off starting with a high offer. Most
negotiators, however, tend to negotiate
first with themselves and thus restrain
themselves from making bold offers.
They tend to justify their modest offers
by thinking that their counterparts would
not go for a higher offer. Experts today
suggest that a seller who puts forward a
high offer may risk his or her credibility
and offend the buyer, who may very well
walk away without even providing a
counteroffer. Instead of coming up with
offers that are either too high or too
modest, it is often better to make offers
that are bold and daring. Bold and daring
offers are reasonably high, tend not to be
acceptable, but are still negotiable.CONSIDER THE
LONGER TERM
If you are hoping to form a
long-term relationship with
the other party, do not take
advantage if they make you
a very low first offer. You will
generate goodwill and
nurture the relationship if
you instead respond with a
counteroffer that is higher,
but still reasonable to you.Tip
US_404-405_Making_offers_counteroffers.indd 405 30/05/16 3:07 pm