Eye on Entrepreneur > Never Say the First Number

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Never!

You’re seated at the table and the other person asks, “How much do you want for that?”

Or “What are you willing to work for?”

Or “What’s it going to cost me?”

Depending on how you answer, it might mean the difference of thousands of dollars, the deal dropping dead, or a smile spread across your happy head.

If you say the number first, you’ll never know if the other party might have offered more or accepted less. No one wants to leave money on the negotiation table. If the other party says the number first, there’s a chance you might have asked for less or offered more.

Never say the first number! Let the other party go first. Manipulate them into going first. Insist that they go first. This is the one time when being first is not the best.

There’s the story of a well-dressed man sitting at the bar at The Borgata in Atlantic City one day when this lovely lady sits on the stool right next to him. They begin a casual conversation and he buys her a drink. Smiles and giggles lead to more personal dialogue, and eventually he asks her: “Will you sleep with me for a million dollars?” She looks him up and down and replies: “For a million dollars, I’d sleep with you.” My buddy next asks: “Will you sleep with me for $50?” The woman’s face transforms into an ugly scowl and she screams: “$50, what do you think I am, some kind of hooker?” My buddy says, “Well, we’ve already established that fact. Now we’re just negotiating!”

You see, it’s hard in any negotiation to go backwards once you’ve said that first number!

All kidding aside, never ever say the first number. For example, when I’m up for consideration to do a corporate motivational speech, the company inquiring knows my fee. It’s posted with the national speakers’ bureaus. But if they ask me to provide extra services, my response might be: “I’m crazy busy, but I’ll check my schedule and see what I can do. What’s in your budget?” They have to say the first number, and I’ve left wiggle room to politely decline the invitation if I so desire because of my busy schedule.

Now it’s your turn. Imagine you’re in a job interview and you want the position. The interviewer asks the ultimate question: “How much will it take?” If you feel compelled to answer and your number is too high, you risk being shown the door at a quick pace. Too low, and you eventually realize your low number left all kinds of money on the table for the more experienced negotiators to enjoy…and the regret will eat at you for your entire tenure.

You can always use my line: “What’s in your budget?” But a more effective approach for this sensitive salary situation is to answer: “I’m much more interested in working here at your company than I am in the size of your initial offer.” I stress, and you should stress, the word “initial.” This line is a great way to compliment the company, create a healthy negotiating climate, not say the first number, and hint that any first number they do say is simply a starting point.

It’s almost a guarantee that most interviewees will automatically answer with a number. Rookie mistake. But since your focus is on the job, company, and your career – and not necessarily the compensation – your response will set you apart from the crowd and raise the interviewer’s eyebrow. -- PC