The opening offer that you present to your counterpart will serve as an anchor for the whole negotiation process. It has a powerful framing effect and will serve as the benchmark for subsequent monetary and non-financial arrangements. The starting point yields estimates, which are biased towards the initial values. The opening offer is like an invitation to dance. It is a subtle art that relies heavily on persuasion. However, to persuade at the moment you need to ask for something is a moment too late. 

         In order to avoid the anchor from pulling you down, it is critical to carefully consider how to open. Similar as with first impressions, there will never be a second chance to make a good first offer. The ideal opening offer should be as close as possible to the other party`s barely acceptable terms. Making a ridiculous offer may lead to the boomerang or the chilling effect. The boomerang effect is when your negotiation partner considers your offer as too high and throws back an equally outrageous offer at you just for the sake of reciprocity. It is difficult to structure a constructive dynamic after such an unfortunate beginning. The parties risk entering into an ego struggle, which will divert attention from the merits of the discussion. The boomerang effect places the task part of the negotiation in jeopardy. 

         In turn, the chilling effect adversely affects the relationship. As the name itself suggests, the chilling effect happens when our counterpart loses interest in the negotiation at the outset. Their perception is that we are not negotiating in good faith. Nobody likes to feel manipulated or taken for a fool. Your role in a negotiation is to put your counterparts` ego at ease. This will lower their defenses and make them more open to future cooperation.

         If you want to increase the chances of your offer being accepted, design the stage well before the offer itself appears on the table. Water the soil before you plant the seeds. Set high standards by references to prestigious companies you have done deals with and big players with whom you would like to be associated, choose top notch business locations for your meeting, use high quality marketing materials, make sure you and your team looks and acts to the highest professional standards. You might even go as far as mentioning a number from a past transaction, make it seem like a slip of the tongue, don’t dwell on it. Your counterpart will subconsciously register all these attributes of success and will treat you accordingly. Remember that you set the value for yourself first. If you want to play big, anchor like a winner.