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High-Low

 

Disciplines > Negotiation > Negotiation tactics > High-Low

Description | Example | Discussion | See also

 

Description

Make your initial demand excessively high (or low, as appropriate).

In doing this be careful that you do not completely put off the other person by going too far outside their zone of acceptability. Also do not let the fear of doing this dissuade you from being bold in your position.

Example

A car dealer phones around personal adverts of individual selling cars, making very low offers. If they are not immediately rejected, they follow up to see how low a price they can get.

A child who wants a parent to fund a night out starts by asking for about three times as much as they really want.

A journalist starts by asking a rich interviewee whether they spend more than a million dollars a year.

Discussion

When a price (or other requirement) is stated, this provides a signal to the other person of you likely agreement zone. They thus may adjust their own zone to fit in to where they suspect the final agreement may be reached.

An initial position also acts as and anchor, against which all other discussions and movements are evaluated.

See also

Agreement zones, Anchoring and Adjustment Heuristic

 

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