What I mean is this: When confronted with naming your
terms or price, counter by recalling a similar deal which
establishes your “ballpark,” albeit the best possible ballpark
you wish to be in. Instead of saying, “I’m worth $110,000,”
Jerry might have said, “At top places like X Corp., people in
this job get between $130,000 and $170,000.”
That gets your point across without moving the other
party into a defensive position. And it gets him thinking at
higher levels. Research shows that people who hear extreme
anchors unconsciously adjust their expectations in the
direction of the opening number. Many even go directly to
their price limit. If Jerry had given this range, the firm
probably would have offered $130,000 because it looked so
cheap next to $170,000.
In a recent study,^4 Columbia Business School
psychologists found that job applicants who named a range
received significantly higher overall salaries than those who
offered a number, especially if their range was a “bolstering
range,” in which the low number in the range was what they
actually wanted.
Understand, if you offer a range (and it’s a good idea to
do so) expect them to come in at the low end.
- PIVOT TO NONMONETARY TERMS
People get hung up on “How much?” But don’t deal with
numbers in isolation. That leads to bargaining, a series of
rigid positions defined by emotional views of fairness and
pride. Negotiation is a more intricate and subtle dynamic