Bringing people round to your way of thinking is never easy. Luckily, there is a process called Anchoring. Anchoring allows you to state your

intentions and influence your opponents’ opinions.

A SECRET WEAPON for winning anyNEGOTIATION

6 REASONS YOU SHOULD DROP AN ANCHOR

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1Setting out your intentions early on will lead your opponent to consider your opinion as the starting point of the negotiation.

I’d like to make it clear that I’m not willing not willing to drop below £10,000

2Research suggests that, in the majority of cases, negotiators who make their offer first will come out ahead.

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3By grounding the offer with a well thought-out anchor, it is often possible to manage the high aspirations of others.

You may have expected to pay

less than thatless than that, but as I’ve said, I can’t go below £10,000

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4A proactive approach allows the initiating party to take charge of the process and shape the negotiation.

Bearing in mind what I’ve said about what I’ve said about my limitations, I’m happy to hear your counteroffer

5Moving first gives you a psychological advantage that many individuals find difficult to recover from.

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6High anchors direct our attention selectively toward an item’s positive attributes; low anchors direct our attention to its flaws.

This is easily wworth £10,000. You’ll be let down by poor quality if you pay anything below

7 REASONS ANCHORING WORKS

1. The Client shall reimburse Photographer for any additional costs the Photographer may incur for travel, meals, parking, and other reasonable costs necessary to the performance of these services.

2. The deposit is not refundable if the Client cancels or changes the engagement. Client cancels or changes the engagement. If the Photographer fails to appear at the place and time specified above, the deposit shall be refunded to the Client.

3. Proof photographs shall be delivered to the Client on CD. The client shall provide the Photographer with a written list of the proof images from which final photographs are to be from which final photographs are to be prepared, and specify the number and fo-r mat(s) of the final photograph to be delivered for each proof image. See attached Price Schedule for available final photograph formats and their prices.

Anchoring takes advantage of a cognitive bias where humans tend to rely too heavily on the first piece of information offered when making subsequent decisions.

In the time between the offer being made and the negotiation beginning, the receiving party has time to reflect and become less defensive. ‘How could I afford to accept this offer?’ has featured in their thinking.

Even when people know that a particular anchor should not influence their judgment, psychologicallpsychologically they are often incapable of resisting its influence.

In situations where there are no clear market indicators (new products etc.), there is the most scope for perceived value to be different from actual value.

Anchoring high allows room for concessions that will satisfsatisfy both parties especially as some negotiators want to ‘win’ as well as secure a better deal than was originally available.

Putting your anchor in writing ahead of time lends extra credibility to your position. The psychological assumption that written words somehow hold more substance.

The Law of Iteration, or the broken record ploy, is where a position is repeated so many times that the proposition becomes more credible.

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4 FACTORS THATINFLUENCE ANCHORING

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1Research suggests that sad people are more likely to use anchoring than people with happy or neutral mood.

2Numerous studies have demonstrated that while experience can sometimes reduce the effect of anchoring, even experts are susceptible to anchoring. This has even been demonstrated to affect legal prprofessionals making judicial decisions.

3Personality has also been shown affect anchoring; people that score highly in tests of agreeableness and conscientiousness are more likely to be affected by anchoring, while those high in extrextroversion are less likely to be affected.

4Some studies have found that the influence of anchoring wanes as cognitive ability increases, although this finding is controversial.

3 EASY STEPS TO DROP A PERFECT ANCHOR OF YOUR OWN

Anchoring is the first step of an overall process, so the skilled negotiator will have a plan for what follows.

What do you want to achieve with the anchor? What will you do next?

Consider positioning. Structure the counterparty’s expectations in relation to the anchor to

promote a less aggressive position and establish dialogue.

The nThe next step is a good final offer, which provides the other party with satisfaction whilst staying

as close as possible to your opening position.

The battle has been fought on ground you selected, so the results will be in your favour.

Likely bargaining range

Your Anchor positionTabled first, and then reiterated

Their new positionas they try to pull you up

Their new intended opening position

Best price!

A SECRET WEAPON for winning any NEGOTIATION

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