Firms should 'never' make the first offer during business negotiations
A better deal can be made by waiting for the other side to make the first offer
Firms should never make the first offer during business negotiations as it could have a negative impact on the deal, it has been claimed.
Negotiators may wish to take the initiative when negotiating a contract and make the first move but one expert claims this may be unwise.
Neil W illiamson, writing for ezinearticles.com, expressed his belief that those who wait for the other side to make the first offer can benefit from a better deal.
He said: "From there, you can negotiate a better deal. However, if you name a price, you may be cutting yourself short. You might say one price and the other person was willing to go much lower. Letting them talk first will pay big dividends."
Mr Williamson also advised businesses to pause after making a counteroffer and let their adversary respond.
Negotiators may feel the need to withdraw their counteroffer if it is followed by a period of silence but this can be avoided if the other side responds first.