When negotiating, do you make your offer first or allow the other party to go first?
The key is being able to define what’s being negotiated, limiting the other side’s leverage.
However, it is critical to have a walk away point.
If you choose to, making the first offer lets you set the starting point, which strongly influences the final outcome.
For example, if you ask for £70 rather than £60, the final offer often lands closer to £70, even if you are willing to negotiate down.
Why it works:
• People tend to adjust from the first number
• Even experienced negotiators are subconsciously influenced by the first offer
It’s best to go first when:
• You know the market value of your product or service
• You have strong leverage (multiple offers, strong alternatives)
• The other side likely has more information than you and you want to be in control
If they come back with a counter offer, don’t capitulate with: “Okay, we’ll lower the price.”
Consider other negotiable options “We can consider reducing the price if we can adjust the delivery schedule or payment terms.”
Letting the other party go first provides you with valuable information, especially when you’re uncertain about the value of your product or service, have less leverage or experience and you want to learn their priorities.
Why letting the other party go first works;
• You avoid undervaluing yourself
• You gain insight into their budget, flexibility, and urgency
They may open higher than you expected. If you’d gone first, you may have gone in too low.
Skilled negotiators don’t simply choose one, they adopt and adapt to both approaches, but critically always have a prepared walk away point.
Simply put, as a “rule of thumb” if you are well-informed, then go first, if you are uncertain, let them go first.