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ANCHORINGHOW TO USE
TO YOUR ADVANTAGE WHEN NEGOTIATING
Making the first offer in a negotiation acts like an anchor
Both parties will rely on "the anchor" when
making decisions
When you have insufficient information about your buyer's willingness to pay - let them go first
And use these tactics to protect yourself from the worst effects of a buyer's
anchor
Tactic: Ignore the Anchor1
When confronted with an aggressive opening position…
…deflect it and don't respond directly by suggesting you either agree or disagree
For example: “… I think we may be looking at this contract renewal in very different
ways. Let’s try and find some common ground by discussing…..”
Tactic: Counter-Anchor2
You can also counter offer to offset the anchoring effect of the buyer’s first offer
For example: “Ten percent discount? Actually, we just implemented a five percent price increase on all contract renewals based on our increased costs…”
Tactic: Separate Leverage from Information3
When the buyer tells you what they want (information) and why you should accept it (leverage)…
Focus on how to best differentiate your offering from the
competition
For example: Buyer: “XYZ Corp has offered the same thing for 20% less.” You: “I am not sure what it is you are asking for...” or “ What commitment have you made to XYZ Corp?”
Tactic: Clarity4
Respond to a buyer’s attempt to anchor by asking clarifying questions, rather than counter-anchoring
Probe for more information regarding the buyer’s position and the motivations behind it
Develop creative options that you can offer later in the discussions
Don’t dwell on the buyer’s anchor, and change the
subject to regain control of the negotiation
Tactic: Reject the Anchor5
If the buyer’s position is
so extreme
that it’s too far outside your
planned positions…
Be prepared to reject their opening position
as not even a basis to negotiate
Back up your position
with one or two reasons…
…then propose what would be an acceptable
basis to negotiate (Counter-Anchor)
Preparation and research is
essential to determine
when to make the first offer
And remember that you must
first understand your buyer’s
willingness to pay.
Research Report Reveals Well-Designed Training Improves Sales Results
Download Report
COMPLIMENTARY OFFER