The_Essential_Manager_s_Handbook

MAKING CONCESSIONS / 407

ENABLING RECIPROCITY

Label the concessions you make as ones that are costly to you and then

reduce your value. This sets up the expectation that you will receive a

concession in return, implying value for value.

USING CONTINGENCY

If you suspect that your concession will not be reciprocated, offer a

concession that is contingent upon the other party providing a concession in

return. For example: “I will be willing to extend the terms of payment to 45

days if you will increase your order by 500 items.”

SETTING BOUNDARIES

Some negotiators put the deal at risk by asking for too much. Set boundaries

for the other party by being clear and precise about what you can concede and

what you absolutely cannot.

SETTING RULES

Sometimes negotiators make final concessions but then withdraw them or

make them contingent on receiving a new concession. Set a clear rule that a

concession cannot be withdrawn, unless it was explicitly offered as a tentative

or conditional concession.

SPOTTING DEAL BREAKERS

Some concessions are deal breakers: without them, your counterpart will

walk away from the negotiation table. Try to distinguish these from value-

enhancing concessions, which are demands that will get a better deal, but if

not provided, would not result in the other party abandoning the negotiations.

Making and interpreting concessions

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