Discussion Forum | Board Infinity

What is Anchor price and Walkaway price?

In a negotiation, the initial price quoted is known as the anchor price. This sets the base price upon which negotiation proceeds and has an effect on the future perceptions of price. A buyer generally sets a lower anchor price, while a seller would set it higher. Both parties come to the table keeping in mind the last price (final offer) at which the deal remains viable. This is the walkaway price.