Anchoring & Framing: Setting the Stage for Success
The first number spoken often defines the negotiation. Learn how to set the anchor and frame the conversation.
The human mind is susceptible to cognitive biases, and two of the most powerful in negotiation are anchoring and framing.
Anchoring
The anchoring effect is the tendency to rely heavily on the first piece of information offered (the "anchor") when making decisions. In a salary negotiation, the first number put on the table—whether by the candidate or the employer—becomes a powerful anchor that influences the entire rest of the discussion.
Rule of Thumb
If you've done your research and are confident, try to make the first offer. Be ambitious but credible. Your anchor should be at the high end of the reasonable range, pulling the final number closer to your goal.
Countering an Anchor
If they anchor first with an extreme number (e.g., a very low salary offer), you must immediately and respectfully counter. Don't just make a counteroffer; explicitly state that their number is outside the range you were expecting based on market data and the value you bring. This dislodges their anchor and allows you to set a new one.
Framing
Framing is about how you present information. The same facts can be perceived differently based on how they are framed.
Loss vs. Gain
People are more motivated to avoid a loss than to achieve an equivalent gain. Instead of saying, "This software will save you $10,000," you could frame it as, "Without this, you're losing over $800 a month in efficiency."
Context is Key
Frame your proposal in the context of their needs and priorities. It's not about what your product does; it's about what it does for them. "Given your goal to reduce security risks, our SOC2 compliance is a critical feature."
Mastering the Art
By mastering anchoring and framing, you can guide the conversation and shape your counterpart's perception of what is fair and reasonable.
The key is preparation. Before any negotiation:
- Research market standards and comparable situations
- Determine your ideal anchor point
- Prepare multiple ways to frame your position
- Anticipate their anchors and prepare counter-frames
The Power of First Impressions
Remember: the first number or frame you present doesn't just set a starting point—it fundamentally shapes how the entire negotiation unfolds. Use this power wisely.
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