The art of negotiation can be tricky, but there are certain tactics that you can utilize in order to achieve the outcome you desire. Among these is a strategy known as a bolstering range offer. A bolstering range offer involves starting at your desired target price and then going up to a reasonable maximum. Studies suggest that focusing on a range when negotiating is the best strategy for sealing the deal. Let’s take a look at why utilizing a range offer creates the biggest advantage.
When proposed correctly, offering a range can be a great tactic for securing a lucrative deal. Let’s say you have a typical fee for your service of $5000 but after hearing your client’s expectations you find that they are willing to spend up to $10,000. You might present them with a range of $6000 to $9000. Chances are they will settle in the $8000-$9000 range, nearly double what you would have originally asked for. Not only will you be more profitable on your end, but your counterpart will feel like they got a great deal too and both parties will be happy.
When you offer a range, it allows the other party to feel like they are in charge and have some say in what they think you are worth. If you price yourself too low, it might appear as though you aren’t worth it but if you come in too high you might run people off. Thus, it is strategical to come in with a range. In addition, you are likely to maintain positive business relationships when you negotiate with a range offer.
It can be difficult to come up with negotiating strategies that do not appear harsh and offend your counterpart. The range strategy is one that makes you seem more flexible. This goes a long way when it comes to negotiating, and can often end with much better results. By focusing on a range, you are more likely to build a positive relationship with your counterpart while getting a winning result as well.