Negotiation
Tactic
Always Counter the First Offer
Countering is good for both parties. Counterparts feel regret if you accept their first offer because it signals they could have received more.
Overview
Don’t be greedy — but counter their first offer.
Countering is good for you and the counterpart. Why? Because they will be happier with the deal (Galinsky, Seiden, Kim, & Medvec, 2002).
If you accept their first offer, they feel regretful — as if they received a suboptimal deal. Countering will make them happier with the final deal. Now, should you counter a counteroffer?
Never counter for the sake of countering. Compare this counteroffer to your benchmark data. What deal were you hoping to secure? If this offer is generous — and it matches your intended deal — then accept.
- Galinsky, A. D., Seiden, V. L., Kim, P. H., & Medvec, V. H. (2002). The dissatisfaction of having your first offer accepted: The role of counterfactual thinking in negotiations. Personality and Social Psychology Bulletin, 28(2), 271-283.