How to Persuasively Present Offers in a Negotiation

1. Do Not Overwhelm. Research out of Swathmore College shows that people get overwhelmed by too many choices; when put in that position, more often than not their default is to make no decision and opt for their status quo. Accordingly, limit the number of options you present to a counterpart at any one time.

2. Present Simultaneous Offers. Present three different options that you would be happy with. Offering multiple equivalent simultaneous offers (MESOs) provides your counterpart with the “control” of making a choice. Furthermore, their reaction to each of the options can shed light on their real underlying interests and priorities.

3. Use a Contrast Effect. Research set forth in the Journal of Marketing Research confirmed that people tend to compare and contrast as means of establishing value and fairness. For example, a dress marketed with a retail price of $500 is not perceived as being as attractive as another one having a retail price of $700 with a $200 sales discount (and the same net price of $500).

Similarly, counterparts will compare offers that you make to those that you made earlier in the negotiation. Start with a more extreme offer than you are willing to agree to, concede, and adjust your offer toward your target. Your follow-on offer will seem more reasonable to your counterpart in contrast to your original offer.

4. Leverage Social Proof. People are influenced by the behaviors of others. In fact, we often look to others to cue us on how to assess and behave in a given situation. This is why night clubs engineer a long waiting line outside of the premises, even though there is plenty of room for additional patrons inside – we are more excited to patronize a club that is so popular that others are willing to wait online for entry…and we then wait, as well.

Whenever possible, communicate to your counterpart that your offer (product, services, pricing, quality) is popular among their peers. For example, volunteer a list of client references, share your client list, and/or highlight the terms under which you entered those relationships, if appropriate. The idea is to make your counterpart feel that it is normal, if not preferable among their peers, to enter into your proposed agreement.