The Price Is Wrong How to Re Anchor a Negotiation After a Bad Opening Offer

In any negotiation involving a number, the first number spoken aloud becomes a powerful psychological anchor. Whether it's a salary negotiation, a company valuation, or a ransom demand, that initial figure frames the entire conversation. All subsequent offers will be judged in relation to that anchor, no matter how arbitrary or unreasonable it may be.

An unprepared negotiator can be psychologically floored by an extreme opening anchor. If you're expecting to pay £100, 000 and they demand £1 million, your instinct is to feel that a £500, 000 settlement would be a reasonable compromise — a massive w in for them.

Dealing with an extreme anchor is a critical skill. You cannot ignore it, but you also cannot afford to let it dictate the terms of the negotiation. Your task is to skillfully and respectfully re-anchor the conversation around a number that is grounded in your reality, not theirs.

The Danger of a Direct Counter-Offer

When faced with an extreme anchor, the most common mistake is to immediately make a counter-offer.

• Them: "We believe the company is worth £50 million."
• You (Mistake): "That's unreasonable. Our valuation is closer to£20 million."

You have just made a critical error. By engaging with their number, even to refute it, you have implicitly validated it as a legitimate starting point. The negotiation is now anchored around their £50 million figure, and you will spend the rest of the conversation trying to pull it down.

The Re-Anchoring Playbook

The correct response is to ignore their anchor entirely and pivot the conversation away from numbers and back to the underlying basis for the valuation. This is a three-step process.

Step 1: Deflect the Anchor with Empathy and Labels

Do not react to the number. Do not show shock or anger. Your face should remain neutral. Your first move is to use a label to acknowledge their position without validating the number itself.

• Them: "Our demand is ten million dollars."
• You: "It seems like you've set a very ambitious goal."

This simple statement does several things. It buys you time. It shows you are listening. And it subtly frames their number as an "ambitious goal" rather than a concrete starting point. You can also use questions to challenge the basis of their anchor.

• "How did you arrive at that figure?"
• "What are the key factors that led you to that valuation?"

This forces them to justify their anchor, often revealing that it is not based on data, but on emotion or an arbitrary aspiration.

Step 2: Pivot to Non-Monetary Issues

Once you have deflected the anchor, you must pivot the conversation away from the contentious number. You do this by focusing on the non-monetary terms of the deal. This is where you explore the "why" behind their "what."

• "Before we discuss specific numbers, it's important for me to understand what a successful long-term partnership looks like for you."
• "Let's set the valuation aside for a moment and talk about the integration plan for the two teams. How do you see that working?"

By focusing on these other issues, you are implicitly communicating that their anchor is not the most important part of the deal. You are also gathering valuable information and building rapport, which will be crucial when you eventually return to the numbers.

Step 3: Set Your Own Anchor

Only after you have successfully deflected their anchor and pivoted the conversation can you introduce your own. Your anchor should not be presented as a counter-offer, but as a reflection of your own reality, based on your own set of dat a and constraints.

• "Thank you for that context. It's been very helpful. Based on our analysis of the market and our own internal constraints, any solution would have to be in a completely different ballpark. For us, theviable range is closer to X."

You have not made a counter-offer to their number. You have introduced a new, separate anchor that re-frames the entire financial conversation. The negotiation is no longer about how far you will move up from their number; it is about how you can bridge the gap between two different realities.

Key Takeaways for Leaders

• The First Number Spoken is the Most Important: Be aware of the power of anchoring. If you can, always try to be the first to put a number on the table, as it will frame the entire negotiation.
• Never Engage with an Extreme Anchor: If the other side opens with an unreasonable number, do not make a counter-offer. Your silence and a simple label ("It seems like you have a high price in mind") is your most powerful response.
• Pivot, then Re-Anchor: Successfully re-anchoring is a two-step process. First, pivot the conversation to non-monetary terms to defuse the initial anchor. Then, introduce your own anchor as a new, independent starting point.

Mastering the art of re-anchoring is a high-level negotiation skill. It requires emotional discipline, strategic patience, and the courage to steer the conversation back to a place of reason and reality.