Counteroffer

 

Counteroffer Definition 

A counteroffer is a response to an initial offer, where the receiving party presents a different proposal in return. This is a common tactic used to move negotiations towards a mutually acceptable agreement.

 

 

 

Counteroffer Example

 

A software development firm submits a proposal to a potential client, quoting a 6-month project timeline and a budget of £500,000. The client, aiming to reduce costs, responds with a counteroffer, proposing a budget of £450,000 but agrees to a more flexible timeline of 7 months, allowing the development firm to allocate resources more efficiently. This counteroffer opens the door for further negotiation to find a mutually acceptable agreement.

 

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