The_Essential_Manager_s_Handbook

406 / CONDUCTING NEGOTIATIONS

Making concessions

Conceding in small steps

Each negotiation event is unique, so

there are no absolute rules for how

to make concessions that apply to all

situations. However, it is generally true

that people like to receive good news or

benefits in installments, rather than all

at once. Skilled negotiators, therefore,

tend to make multiple small concessions

in order to increase the level of

satisfaction of their counterparts.

Knowing what to concede

Inexperienced negotiators often

make a first sizeable concession as

an expression of goodwill. However,

this can set the expectation that

there are many concessions to be

provided. Experienced negotiators,

by contrast, tend to untangle the

relationships from the concessions.

Sometimes, in order to set the tone

of reciprocating concessions, these

knowledegable negotiators concede

first by making a concession on a

minor issue.

Wait before you make the first

sizeable concession. During this time,

advocate for your initial offer and convey

the idea that it is not that easy to make

concessions. The second concession

should be smaller in size than the

first and be a longer time in coming.

Making concessions in progressively

declining installments will then lend

more credibility to when you finally say:

“There is no more to give.”

Experienced negotiators know that successful negotiations involve a

certain amount of give and take, and are well versed in the process of

making concessions. They tend to develop offers that leave room for

concessions, as these are the oil that lubricates the making of a deal.

WATCH YOUR TIMING

Think carefully about the

timing of your first sizable

concession. If you make it too

soon after your initial offer, it

will give the other party the

impression that the initial

offer was not a credible one.

Tip

30 %

of bargaining behavior

is influenced by the behavior

of others, not self-interest

US_406-407_Making_concessions.indd 406 30/05/16 3:07 pm