Who makes the first offer? It is the question that paralyses negotiators more than any other, from recruitment to the sale of a business. The dominant belief, “whoever speaks first loses”, is wrong in most cases. This article settles the matter: the situations in which you should put the first number on the table, those in which you are better off waiting, and how to turn that choice into a measurable pricing advantage.
The real rule: whoever anchors sets the direction
The research in decision psychology is unambiguous: the first number spoken acts as an anchor point around which the entire discussion revolves. This sits at the heart of the anchoring technique. An ambitious yet well-argued opening offer mechanically pulls the outcome towards the person who tabled it. Holding back out of caution often means letting the other side plant their marker, so that you then negotiate on ground that is not your own.
But an anchor is only worth something if it is informed. Putting the first number on the table without knowing the market range risks undervaluing yourself or pricing yourself out. Hence the real rule, in two stages.
Making the first offer: when it is the right call
Take the initiative when you have command of the information: you know the going prices, the true value of the item, the credible alternatives. In that case, anchoring high (or low, depending on your side) captures the advantage of moving first.
- A readable market: the salary for a standard role, a property with clear comparables, a well-defined service.
- You are the expert in the transaction, facing a less informed counterpart.
- Time is against you and you want to frame the discussion zone quickly.
The anchor must remain defensible. A figure grounded in objective criteria, a market benchmark, an index, a precedent, withstands haggling. An arbitrary figure collapses at the first objection.
Waiting: when ignorance is a trap
Let the other side speak first when you do not know the range. An opaque sector, a rare talent, a one-of-a-kind asset: here, the opponent's first offer informs you. If it exceeds your expectations, you have just avoided a costly undervaluation.
Waiting rests on one non-negotiable condition: having a solid fallback option (BATNA). Without an alternative, you are stuck with the opponent's anchor and cannot refuse it. With a clear BATNA, you listen, you take in the first number, and then you reframe.
The story: the number I never said
A company director I was coaching had to sell off a side activity. By reflex, he wanted to announce £180,000 so as “not to sell himself short”. The market for this kind of asset was opaque: no reliable comparables. I held him back.
In the meeting, the buyer opened: “We'd be somewhere around 220, does that work for you?” My client had almost anchored £40,000 below the opponent's first figure. He held the strategic silence, three seconds that feel like an eternity. The buyer, uncomfortable, added: “Let's say 230 if we sign this month.”
My client then reflected it back, using the mirroring technique: “You'd be at 230 for a quick signature?” Then, instead of saying yes, he answered with a calibrated question: “That's an interesting starting point. How did you arrive at that figure?” The buyer laid out his reasoning, and revealed that what he really valued was the client portfolio, not the equipment. The seller re-anchored on that value: signed at £248,000. By naming his number too soon, he would have capped out at 180.
The protocol in three decisions
Boil the dilemma down to a simple, actionable sequence:
- Decision 1, Information. Do you know the market range? Yes you can anchor. No let it come to you.
- Decision 2, Anchor. If you open, put forward an ambitious figure backed by objective criteria, never a round number “out of thin air”.
- Decision 3, Reaction. If the other side opens, do not counter-offer within the second. Silence, reformulation, calibrated question. You turn their anchor into usable information.
The real issue is not “speak or stay silent”, but anchor with information or gather information before anchoring. To practise on a real case, try the simulator; to choose the technique suited to your situation, browse the library.
FAQ
Who makes the first offer in a salary negotiation?
If you have done your homework (salary scales, comparable offers, the range for the role), anchor: put forward the realistic top of the range, backed by objective criteria. If the company has an opaque pay framework, let it make the first proposal, then reformulate and ask a calibrated question before positioning yourself.
What should I do if the other side makes a very low first offer?
Do not counter it straight away, or you legitimise their anchor. Mark a silence, then ask what it is based on. Then re-anchor on your own objective criteria and, if needed, remind them of your fallback option to restore the balance.
