Ackerman System
A bargaining strategy
The Ackerman System is a bargaining strategy that involves making a series of offers and counteroffers to reach a mutually beneficial agreement. The system involves establishing a target price, making an initial offer, and then raising the price in a series of increments until a deal is reached.
- Establish a target price
- Make an initial offer
- Raise the price in a series of increments
- Establish a Target PriceDetermine the target price for the goods or services being negotiated.Pro tipUse market research and data to determine a fair and reasonable target price.WarningBe careful not to set the target price too high or too low, as this can affect the negotiation.
- Make an Initial OfferMake an initial offer at 65% of the target price.Pro tipUse the initial offer to set the tone for the negotiation and create a sense of momentum.WarningBe careful not to make the initial offer too low, as this can create a negative reaction.
- Raise the PriceRaise the price in a series of increments, using tactical empathy to build trust and create a sense of collaboration.Pro tipUse the increments to create a sense of progress and momentum in the negotiation.WarningBe careful not to raise the price too quickly, as this can create a negative reaction.
High-Stakes Negotiation
In a high-stakes negotiation, using the Ackerman System can help to reach a mutually beneficial agreement.
OutcomeThe negotiation is successful and both parties reach a mutually beneficial agreement.
Low-Stakes Negotiation
In a low-stakes negotiation, using the Ackerman System may not be necessary, as the potential consequences of the negotiation may not be as significant.
OutcomeThe negotiation is successful, but the use of the Ackerman System may not have been necessary.
Not Establishing a Clear Target Price
Not establishing a clear target price can lead to confusion and a lack of direction in the negotiation.
Making an Initial Offer That is Too Low
Making an initial offer that is too low can create a negative reaction and affect the negotiation.
Raising the Price Too Quickly
Raising the price too quickly can create a negative reaction and affect the negotiation.
The Ackerman System was developed by Chris Voss, a former FBI hostage negotiator, as a way to negotiate high-stakes deals.
Source · BOOK
Chris Voss Teaches the Art of Negotiation