Should you put your offer on the table first?

This is a question that has been debated, and continue to be, ever since negotiation was established as a field. (Not unlikely before then also…)The main argument for providing your offer first is the anchoring effect - see recent post - and that you thereby are taking charge and leading the negotiation process. The potential downside is that your counterpart may have accepted a deal that would have been far better than the one you just put on the table. Waiting to present your offer will give you the opportunity to see if your counterpart is willing to accept conditions better than the ones you were planning to propose, but also presents the risk of being “trapped” by an anchor and subsequently responding to the situation rather than leading it.

Both sides in this debate tend to be all in on one side or the other. I would argue this is a far too simplistic approach. Factors such as:

- Time spent on preparations

- Your knowledge about the topic to be negotiated

- The nationality of your counterpart

- Your desire to reach an agreement

These are all examples of topics that needs to be evaluated before deciding to go with one or the other. To put it in some context, if you really want a deal no matter what, let your counterpart go first and take the discussion from there. If you on the other hand have done your research and have plenty of supporting data, why not go first to ensure you set the expectations for the negotiation? And should you happen to get caught by an unwanted anchor, don’t worry. There are ways to get out on top of the situation.