Whether you're negotiating some kind of business deal, there are a lot of ways you can approach it. A recent study suggests, however, that the best strategy for negotiating down might be to offer a "bolstering range offer."
A bolstering range offer involves starting at your desired target price and going up to a reasonable maximum. The study, led by professors Daniel Ames and Malia Mason at Columbia Business School, compared five different negotiating strategies—shown above—to see which one gave the best deal while still being reasonably effective. What their findings suggested was that the bolstering range offer strategy got better overall deals, yet they weren't seen any more negatively than other styles. In their example of a bolstering range offer, if your target is $100 for providing a service, you would make an offering range from $100 to $120.
With this type of negotiation style you are more likely to get your target and also avoid losing the interest of the other party. The other party might think that $110 is a reasonable price point, giving you a boost, or they'll at least feel like they're getting the best deal possible agreeing to your desired target price point. Negotiation is a tough skill to develop for a lot of people, but when you know the right strategies, you'll be off to a great start.
When It Comes to an Opening Number, Sometimes the Best Bargaining Move is to Offer Two | Columbia Business School via Business Insider
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