State Your Fee First, With a Reason
When price comes up, say your fee clearly and early, with one line of reasoning, rather than asking the buyer what they want to pay.
Many studies and a meta-analysis show that first offers pull the final deal towards them, though an extreme anchor can end the talk. Graded solid, not strong, because the studies test negotiations in general, not fee quotes for services.
Why it works
The first number on the table shapes what both sides see as reasonable. If you let the buyer name it, you will be negotiating up from their number.
How to do it
- Know your fee and your floor before the meeting.
- When asked, say the fee in one sentence with a range and a reason.
- Base it on the value of the role, not on your cost.
- Then go back to a question about their needs.
- Avoid naming a number so high it looks unserious.
What to say
Our fee is 7 to 12% of annual CTC, depending on the role. Which roles are you thinking of?
For an area manager at this level, it's usually 9%, because we screen for crop and dealer knowledge before you see anyone.
Avoid
Asking: what budget do you have in mind? You lose the anchor and usually hear a number below your floor.
Example
When the owner of a Rajkot groundnut processor asked about fees in the first minute, Mehul said: 8 to 10%, depending on the role, and asked which roles were open. The owner did not try to negotiate the range, only which end applied.
Practise it
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