Good morning and welcome to The Closer, the newsletter all about deals. Today’s edition is short and sharp — one tactic, backed by research, to help you negotiate smarter. No headlines, no noise — just a Nugget you can deploy by lunchtime.
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EXTREME
ANCHORING
BACKFIRE
Closer Tactic #54 • Deal Psychology
Most people think more extreme anchors are always better.
Sometimes they kill the deal entirely.
The Nugget
While aggressive anchors usually work, extremely unrealistic ones can backfire by triggering walkaway responses.
When Yahoo tried to acquire Facebook in 2006, they opened with a $1 billion offer. Mark Zuckerberg reportedly laughed and said the company wasn't for sale at any price. Yahoo's anchor was so far below Facebook's internal valuation ($8+ billion) that it ended negotiations before they started.
Research shows anchors need to be aggressive but within the "zone of possible agreement."
How to Deploy
• Research their likely reservation point before anchoring
• Test extreme positions with phrases like I'm thinking in the range of...
• Watch for immediate rejection signals and adjust quickly
Avoid anchors so extreme they signal you don't understand the market or aren't serious.
Takeaway
The best anchor is the most extreme one they won't immediately reject.
Reply with a time an extreme offer backfired on you—
we might feature you (and send a mug).
