No1 - The Anchor - Negotiation Tactics
Marianne drops a 12.5% anchor and watches recruiters sink. A masterclass in negotiation bias, perception control, and the psychology of Anchoring.
The Weekly Walkaway highlights negotiation in its ‘good’, ‘bad’ and sometimes ‘downright ugly’ forms. Issue No. 112 (16th May 2025)
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Hey Walkawayers, happy Friday.
We are starting a series - a series of stories about tactics for your enjoyment.
Todays: Marianne drops a 12.5% anchor and watches recruiters sink. A masterclass in negotiation bias, perception control and the psychology of anchoring.
So far we have 47 tactics and 94 stories. I’m sure this will grow…
We will be sharing these over the coming months and encourage you to share yours too.. either anonymously or directly. Make comment here or email me confidentially, to share your story of where you have either used or been used by this weeks tactic.
Enjoy
The Anchor
Marianne didn’t like negotiation. Not in the messy, human sense of the word. She liked systems. Structures. Ratios. Deadlines. She liked her numbers clean, her contracts locked and her suppliers submissive.
Which is why she loved procurement.
It was the only department where you could say “12.5% net margin cap across all categories” with a straight face, and someone would nod solemnly and scribble it down like it had descended from a stone tablet.
She was sitting in Meeting Room 4B.. known internally as The Chamber. It had a clock with no battery, a half-dead spider plant in the corner and a long walnut-effect table that had seen more bloodshed than a Game of Thrones wedding.
Across from her, Lloyd.. her loyal deputy and walking Excel file.. was setting up the RFP packs for that afternoon’s supplier gauntlet.
Three recruitment agencies. One new preferred supplier list.. and a document thicker than the GDPR compliance manual.
“Did you bake in the rebate model?” Marianne asked, eyes not leaving her screen.
Lloyd didn’t look up. “Of course. Tiered. Based on quarterly performance, volume and savings targets.”
“And the payment terms?”
“Ninety days. No exceptions.”
“And the margin?”
Lloyd smiled. “Twelve-point-five. Framed as market standard.”
It wasn’t.. but that didn’t matter.. Anchoring isn’t about truth. It’s about psychology.
Marianne and Lloyd had been planning this day for weeks and it hadn’t taken long for Lloyd to understand the role he was to play and the science behind the tactics Marianne was going to employ.
“Anchoring is a powerful process, Lloyd” She had said, “we will be using our 12.5% to frame the negotiation and we are going to use it to influence their perception of value.”
She had gone on to explain that in her experience recruiters are untrained and lazy and like most humans they rely on mental shortcuts when making judgments.
“Ignore their number at all cost, Lloyd, never ever mention it.” She had said. “Don’t get anchored on their number. We will make the first proposal, and we will keep repeating our number”.
It was simple when you understood the game. Anchoring triggers one of those human short cuts, a cognitive bias towards the first number they hear.
The Glossy One
First up: a global agency. All teeth, power-suits and shareholder pressure.
Their MD, all handbag and diamonds, shook hands too confidently and went on to mistake the silence in the room for interest, rather than calculation.
She launched into her deck. “We pride ourselves on value-add.. innovation.. AI.. bespoke talent solutions.. data-led insights... blah blah blah”
Marianne waited, wandering why these companies always send their big ego’s to these meetings.. it’s just too easy for her.. and there it was; slide eight.
She slid the RFP across the table, tapping on clause 3.2.
“We’ll need you to commit to a 12.5% net margin cap. That’s standard across this category now.”
Diamonds blinked. “Erm.. well.. that’s.. erm.. [cough].. lower than we usually go.”
On plan, Lloyd jumped in. “It’s in line with what we’re seeing from your competitors. It’s 12.5%”
(It wasn’t. But if you say it confidently enough and mix it up with a little FOMO - “It is in line” rather than “It’s actually in line” - they start negotiating in their own heads and against their own business model.)
Diamonds backpedalled. “Of course. We’re open to discussing commercial alignment.”
Commercial alignment. Marianne’s favourite euphemism for ‘surrender’ from someone with full authority to sign. Again she wandered.. it’s just too easy.
The Desperate One
Next in: a mid-size firm trying to punch up.
The client lead had hair that just screamed - ‘haircut’! and the look of someone who’d just seen his friends made redundant and had promised the deal to his MD before he’d even entered the building.
He was nervous with a slight sheen to his forehead. Over-prepared and had even printed copies of his slide deck, just in case.. and was twitching from too much caffeine. He swivelled in his chair uncomfortably.
He didn’t even get through his intro before Marianne cut him off.
“12.5% and we also expect annualised savings benchmarks, five percent year-on-year, and rebates if targets aren’t met.”
He froze. “Sorry.. rebates?” he stammered while a drop of perspiration ran a line down his side burn and on down his cheek.
Lloyd smiled. “Yes, 12.5% and rebates. It’s standard. We use a clawback structure if placement ratios dip or time-to-fill increases.”
The poor bastard nodded. “Sure.. That’s.. er.. doable.”
It wasn’t. But by the time he realised it, he’d already agreed. The anchor had been dropped and he was halfway to the seabed.. but at least he wasn’t redundant.
The Boutique One
Last in: a boutique and a founder. All cock sure denim and blazer. Too cool to care. The kind of guy who thought margin erosion was something that happened to other people.
He leaned back in his chair. Smirked at the spreadsheet. Called it “ambitious.”
Marianne didn’t flinch.
“12.5%. We’ve had four suppliers agree in principle to the model already,” she lied.
Denim chuckled. “You won’t get quality service at those margins.”
Lloyd shrugged. “12.5%. We’re not asking for service. We’re asking for results.”
Marianne kept it cool. Inwardly she flinched at his words.. That was too arrogant for her liking and off script.. of course they want service. But, Lloyd was getting into the game.
“You’re bidding for tier two access then. We’ll use you when preferred suppliers can’t deliver. So think of it as a foot in the door.”
Denim paused. He wanted in. They always did. He couldn’t go back to the office a 2nd tier. The win is so seductive.. even when it’s an illusion.
By the end of the hour, he agreed. “Let’s trial it. Six months. Then review.”
Satisfied
Three weeks later, the list was confirmed. All three had agreed, with a bit of movement here or there.. to show willing and to give satisfaction. Costs were down. Payment terms lengthened. Rebates were locked.
Marianne closed the file. No celebration. Just a small, satisfied smile.
She didn’t have to argue. She hadn’t needed to debate. No threats were required.
She just set the number, framed the rules.. and made it sound like the whole world was already playing along. And one by one, they did.
“Lloyd? Time for a drink?”
Fictional Names. Fictionalised Story. Familiar Behaviour..
Used this tactic before? Been used by it? Share your stories here:
OR - if you’d like to share anonymously then please email me at [Giles dot morgan at kahvay dot com]. We will fictionalise the story, use fictional names and highlight the familiar behaviours.
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