The Cost of Showing Your Hand

By Tessa Marie

Should you provide the first number in a salary negotiation?

What are the Risks? And more importantly, what are the Benefits?

All sauces have the same structure, according to author Margaret Neale (2015) by using this analogy to demonstrate that while not all sauces have the same ingredients, they can be made by simply understanding the framework then using whatever materials are available. In examining the benefits and costs of making the first offer it is crucial to remember that no two negotiations are exactly alike.

There are two main benefits to making the first offer;

  • The power of anchoring

  • Initial offers act as a springboard into the negotiation

There are however, two main costs;