Anchoring

Set the first number — it disproportionately influences the entire range of the negotiation.

GeneralmoderateFraming

Anchoring is one of the most-replicated effects in behavioural economics: the first number named in a negotiation pulls the eventual outcome toward it, even when both sides know the anchor is arbitrary. Whoever anchors first sets the playing field. The discipline is twofold: anchor first when you have information advantage and a defensible aggressive number, and re-anchor immediately if the counterpart anchors first with something extreme.

Example

You

"Just to set expectations — for a build at this spec and timeline, we''re typically at $2.8M to $3.2M. Where the project lands depends on the maintenance package and payment structure."

Counterpart

"$2.8M is high."

You

"Compared to what?"

When to use

Anchor first when you''re the seller with credible value, when you have superior information about the price range, and on every deal where you''re willing to defend an aggressive opening.

When NOT to use

Don''t anchor when you have very poor information about market rates — the counterpart''s anchor is then more useful as a signal. Don''t anchor with a number you can''t defend; weak anchors collapse under one calibrated question.

How to counter this

Re-anchor immediately, ignoring the original: "We''re actually expecting something in the $1.6M to $1.9M range — let''s start there."

Related dimensions

Anchoring Frame Control Value Articulation

Practice drill

For your next pricing conversation, plan three anchors: one aggressive, one realistic, one fallback. Use the aggressive one if you're first to name a number.

Practise this technique

When to use, when NOT to use, how to counter, and a practice drill — free forever.

Already have an account?

Ackerman Bargaining Authority