When to use it
Use it when you are the buyer, for example hiring a freelancer, agreeing a supplier rate or buying equipment.
How to apply it
- Set your target price.
- Open at about 65% of your target.
- Plan three further raises to 85%, 95% and 100% of the target.
- Use empathy and calibrated questions between each raise to let them counter first.
- Make your final offer a precise, non-round figure.
- Add a non-monetary item at the end to signal you have reached your limit.
Tip: This model was designed for buying; do not apply the percentages mechanically when you are the one selling your skills.