Interview Prep · True or False
Is it true that you should assume the company's first offer is their absolute maximum budget?
False. Most initial offers are conservative, leaving room for a standard counter-offer.
Most first offers are conservative and leave room for a standard counter, so assuming it is the ceiling forfeits money that was available.
Treating the opening offer as final, and skipping the counter the employer expected.
This scenario is one of 500 in the Skillful Interview Prep track. Each card states a situation, you decide true or false, and the explanation follows immediately.
- Answer
- False
- Track
- Interview Prep
- Topics
- salary-negotiation, negotiation-strategy
Also asked as
Is the first offer the companys maximum? Does the employer have room above the first offer? How much budget flexibility do companies have?
The scenario in full
You should assume the company's first offer is their absolute maximum budget.
Frequently asked questions
Is it true that you should assume the company's first offer is their absolute maximum budget?
False. Most initial offers are conservative, leaving room for a standard counter-offer.
Is the first offer the companys maximum?
False. Most initial offers are conservative, leaving room for a standard counter-offer. Most first offers are conservative and leave room for a standard counter, so assuming it is the ceiling forfeits money that was available.
Does the employer have room above the first offer?
False. Most initial offers are conservative, leaving room for a standard counter-offer. Most first offers are conservative and leave room for a standard counter, so assuming it is the ceiling forfeits money that was available.
How much budget flexibility do companies have?
False. Most initial offers are conservative, leaving room for a standard counter-offer. Most first offers are conservative and leave room for a standard counter, so assuming it is the ceiling forfeits money that was available.
Where does this interview prep question come from?
It is one of 500 scenarios in the Skillful Interview Prep track. Each card states a realistic situation, you decide true or false, and the explanation follows immediately.
How do I practise more questions like this?
Start the Interview Prep quiz. It runs about two minutes per session, the first 150 questions are free across every category, and your progress saves automatically.