Negotiate smarter with round pricing

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💡 Why Rounded Prices Win More Negotiations
Insights from sciencesays

Imagine you are choosing between two venues for a launch event. One costs $20,000 a day, the other slightly less at $19,445. Although the precise offer is lower, research shows you are more likely to start negotiating with the rounded price.

1️⃣ Start With Rounded Numbers: When you list a rounded price like $22,000 instead of $21,947, people are more willing to negotiate. Rounded prices signal flexibility, which encourages counterparts to make the first move.

2️⃣ Switch to Precision Midway: Once the negotiation begins, use precise offers. Countering with $3,425 instead of $3,400 pushes the other party to move in smaller increments, often landing you a higher final deal.

3️⃣ The Data Behind It: In a series of six experiments and market observations, researchers found people were 77.5% less likely to negotiate when presented with a precise price. Renters using precise offers were seen as less flexible and less approachable. The more digits in the precision, the less likely a negotiation would even start.

4️⃣ Real-Life Example: Rental listings in Medford, near Boston, often show highly precise prices. With competition increasing, this precision may actually discourage renters from making offers, leaving properties on the market longer.

The Takeaway

If you want more people to engage with your offers, use rounded numbers upfront to open the door. Then, once discussions begin, introduce precise prices to secure the best outcome. Rounded numbers invite conversation, while precision helps you close strong.

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