Q:

What are some negotiation strategies?

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Quick Answer

According to the Stanford University Graduate School of Business, successful negotiation strategies include the creation of detailed plans that visualize several outcomes and possible responses, taking cultural considerations into account, and never agreeing to the first offer. Forbes magazine also suggests that making the first offer is a smart negotiation strategy, as is listing and ranking priorities, and knowing targets and which circumstances constitute a need to leave negotiations.

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Full Answer

Both Stanford and Forbes caution parties against accepting first offers, even if the offers are acceptable. The common wisdom in this area states that people are expecting a true negotiation that results in a good deal. Both sides want to feel success, and negotiation builds investment. The more invested a party is in a process, the more satisfied that party should be with the end result. Accepting a first offer may make the other party feel like the opening price was too low. This may lead to poorer relations in the future and less-than-glowing recommendations.

Forbes says that making the first offer is advantageous because of the anchoring principle. An anchor number, or first offer, is the one that the parties have to work around. People who offer first are more likely to get a figure closer to their desired price than the other party's desired price.

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