Start Negotiations With the Right Offer
How high is too high?
Is it a good idea to make an outrageous offer so that you have plenty of room to come down when the buyer makes a counteroffer? If the first offer is too high--outside the realm of what's reasonable to the buyer--then the buyer might not make a counteroffer at all. If the offer was lowered to restart the negotiation, it will signal desperation and let the buyer know that concessions could be won. Carefully judge the plausibility of your opening offer. The opening offer is one at the high end of what the prospect could accept--and one you could defend without stretching your credibility.
Excerpted from Creative Selling: Boost your B2B sales