A counteroffer is the buyer's response to your proposed price or terms — usually a lower number, a different payment structure, or extra scope. It is a normal part of any negotiation, not a rejection. How you handle it decides the deal's economics. A counteroffer is also information: it tells you what the buyer thinks the deal is worth and how much leverage you hold. The buyer is anchoring against your number.
In plain English
The buyer almost never takes the first price. Their counteroffer is an invitation to keep talking. Your job is to respond with a measured move — a small concession tied to a discount that buys something back — rather than meeting in the middle instantly or walking out.
Why it matters to you
The first counteroffer is rarely the real floor; it is the buyer testing you. Respond calmly, keep your walk-away price in mind, and never give a second concession before the first one is acknowledged. Reps who read counteroffers as data instead of pressure close better deals and keep margins healthy.