In the realm of negotiation, deciding who makes the first move can significantly impact the outcome. Should you put your proposal on the table first, or wait for the other party to reveal their hand? Both approaches have their advantages and pitfalls.

Here, we explore three strategies to navigate this crucial decision:

• Making the first proposal,
• Encouraging the other party to go first, and
• A hybrid approach that leverages the benefits of both tactics.

We’ll also discuss personal traits that can enhance the effectiveness of these strategies.

Negotiation Technique 1: Putting Your Proposal First

Making the first proposal in a negotiation can set the tone and anchor the discussion. This strategy allows you to frame the conversation around your terms and establish a starting point that can work in your favour.

Go First Advantages:

• Anchoring Effect: By putting your proposal first, you set an anchor that the other party must respond to. This initial figure can heavily influence the negotiation's trajectory.
• Control the Narrative: You can shape the negotiation's direction, focusing on the aspects most beneficial to you.
• Demonstrates Confidence: Presenting your proposal first can convey confidence and preparedness, potentially giving you an edge.

Go First Pitfalls:

• Risk of Over- or Under-Valuing: If your proposal is too ambitious or too modest, it could either scare off the other party or leave value on the table.
• Limited Information: Without knowing the other party’s stance, your proposal might miss key points or opportunities for mutual gain.

Maximising This Approach:

• Thorough Preparation: Research thoroughly to make an informed initial proposal. Understand the market value, the other party’s needs, and possible concessions.
• Flexible Anchoring: While anchoring the negotiation, be prepared to adjust based on the other party’s responses. Flexibility can prevent a stalemate.
• Clear Justification: Back your proposal with clear, logical reasons to strengthen its legitimacy and persuasiveness.

Negotiation Technique 2: Let the Other Party Propose First

Encouraging the other party to make the first proposal allows you to gather information and tailor your response accordingly. This strategy can be particularly effective if you’re unsure of the other party’s position or priorities.

Go Last Advantages:

• Information Advantage: Hearing their proposal first provides insights into their priorities, constraints, and flexibility.
• Room for Manoeuvre: You can better gauge the negotiation landscape and adjust your strategy to maximise outcomes.
  Reduced Risk:
  You avoid the risk of making a premature or ill-informed proposal.

Go Last Pitfalls:

• Loss of Control: Allowing the other party to go first can give them control over the negotiation's initial direction.
• Anchoring Effect: You might find yourself negotiating within a range set by their anchor, which could be less favourable.

Maximising This Approach:

• Ask Open-Ended Questions: Encourage the other party to share their proposal by asking questions that reveal their priorities and constraints.
• Strategic Silence: Use silence strategically. Sometimes, the other party will fill the silence with valuable information, including their initial proposal.
• Prepare Counter-Proposals: Be ready with multiple counter-proposals that can be adjusted based on the initial offer, ensuring you can respond effectively.

Negotiation Technique 3: A Hybrid Approach

A hybrid approach involves being prepared to make the first proposal but also being adaptable enough to encourage the other party to go first when beneficial. This strategy allows you to leverage the advantages of both approaches while mitigating their respective risks.

Hybrid Advantages:

• Balanced Control and Information: You can set the tone when needed but also gather information when it’s more strategic.
• Adaptability: This approach showcases flexibility and readiness to adjust tactics based on the negotiation dynamics.
• Enhanced Perception: Demonstrating adaptability can build rapport and trust, as it shows you’re considering the other party’s perspective.

Hybrid Pitfalls:

• Complexity: Balancing between the two approaches can be complex and requires careful judgment and timing.
• Potential Indecisiveness: Overanalysing when to switch between strategies can lead to hesitation and lost opportunities.

Maximising The Hybrid Approach:

• Stay Alert: Continuously assess the negotiation flow to decide the best moments to put forward your proposal or to wait.
• Be Ready to Pivot: Prepare to pivot your strategy smoothly based on the other party’s behaviour and responses.
• Strong Communication Skills: Clear, concise, and persuasive communication is crucial to navigate between setting anchors and gathering information effectively.

Personal Traits to Enhance These Strategies

1. Confidence:

Essential for making the first proposal and conveying readiness. Confidence helps in setting strong anchors and adapting strategies smoothly.

2. Active Listening:

Critical for waiting for the other party’s proposal. Active listening ensures you catch all relevant information and use it to your advantage.

3. Flexibility:

Key for the hybrid approach. Being adaptable and open to changing tactics based on the situation enhances your negotiation agility.

4. Patience:

Vital for both waiting for the other party to go first and for the hybrid approach. Patience ensures you don’t rush into proposals and make well-timed moves.

5. Preparation:

Across all strategies, thorough preparation is indispensable. Knowing your facts, understanding the other party’s potential position, and having a clear goal are the foundation of successful negotiations.

Deciding who goes first in a negotiation is a strategic choice that can shape the entire process.

Whether you choose to put your proposal first, wait for the other party, or use a hybrid approach, understanding the advantages and pitfalls of each strategy is crucial. By aligning these strategies with your personal traits and preparing thoroughly, you can enhance your negotiation skills and achieve better outcomes.

REMEMBER: The key to successful negotiation lies not just in the techniques themselves but in how skilfully you apply them in practice. By building your expertise On negotiation courses and then regularly practicing at The Negotiation Club you will become a more effective and confident negotiator.

Because regular practice allows you to experience the emotional challenges involved, such as managing anxiety, building rapport, and maintaining composure under pressure. Through consistent practice and feedback from peers, you can refine your negotiation techniques and develop the emotional resilience needed for high-stakes negotiations.

Flexibility and adaptability, combined with emotional intelligence, are your greatest assets in navigating the dynamic landscape of negotiations.

Knowledge is of no value if you can not put it into action!

... Try them at our FREE Negotiation Taster!