I was waiting for something and wound up watching part of an episode of the Apprentice UK and discovered a new fun fact about myself: watching people who claim to be good at negotiating fuck up literally the most basic negotiation tactics fills me with a wild animal rage
Anchoring (in negotiation) is a term for the way that the first number put on the table by a party sets the scale for all the other numbers used. For example, I could start a negotiation by telling you that I sold a painting at a thousand dollars. Your brain will take that number and latch on to it as a benchmark. If I were to then later say that I had a certain painting available for $500, your instinct will be to see that as a great deal. And if I were to then say I have another painting for $2000, your mind is naturally going to come back to the first number I gave you as a price comparison.
What the idiots in this show are doing, constantly, is saying that they're trying to get X amount of money for something, and then that's the first number they put on the table. They're anchoring with the number that is their target point. It's bad strategy. It leaves them nowhere to go but down, which means they're missing the target every time. If they were anchoring at, say, twice what their target price was, they can use that baseline to convince the other party that they're being offered a great deal when they negotiate down to their target price.
Just as another note, because everyone should know a little about how to negotiate: if you're going to give a number, give the explanation for the number first. As soon as a number is given, the other person is going to be focusing on whether that number works for them, and will likely focus less on any explanation given after.
So you don't do: The painting is a thousand dollars, because it takes months to complete. Instead: This painting is the product of months of work, so I would ask a thousand dollars for it. It's a small thing, but you get less sticker shock when you preface the number with the reason for it.





















