Why “Range Proposal” May Be Your Best Negotiation Choice
Whether you are negotiating a business deal, there are many ways to approach it. However, recent research suggests that offering an “wider range” may be the best strategy for lowering prices.
The offer to expand the range includes from the beginning to the desired target price to a reasonable maximum. A study led by Professors Daniel Ames and Malia Mason of Columbia Business School compared the five different negotiation strategies shown above to see which one gives the best deal while still being reasonably effective. Their findings showed that the extended-range offering strategy produces better overall offers without being perceived as more negatively than other styles. In their example of an extended range proposal, if your goal is $ 100 to provide a service, you would make an offer in the $ 100 to $ 120 range.
With this style of negotiation, you are more likely to achieve your goal and also avoid losing interest on the other side. The other party may think that $ 110 is a reasonable price to give you a boost, or at least they will feel like they are getting the best possible deal by agreeing to the desired target price. Negotiation is a tricky skill for many people, but when you know the right strategies , you’ll have a great start.
When it comes to a seed, sometimes the best bargaining move is to offer two | Columbia Business School via Business Insider