Concessions

Give to gain

Negotiations simply don't work if concessions aren't made. Plain-and-simple, negotiations only occur when mutual concessions are given by both parties. But, without strategic use of them, you may end up digging yourself into a hole. Here are a handful of techniques to employ to use concessions to your advantage.

  • Start small and increase. Studies have shown that it's best to begin with stingy concessions and increase the concession size as the negotiation goes on. This gives the effect of making the larger concessions seem even larger. Plus, it avoids giving the other party unrealistic expectations in the beginning.
  • Label every concession. Make sure every concession you make is clear, showing the other party that the concession is serious. You do not want your concessions going unnoticed.
  • Identify the cost/benefit. With every concession, ensure the other party understands how costly it is to you. Also explain how beneficial the concession is to the other party.
  • Expect reciprocation. Ask the other party to return the favor by making a concession themselves. If you're lucky, they'll make a larger concession than you made.
  • Keep track of concessions. Write down every concession that is made, from both sides. Use this to keep tabs on when and how much each was, and keep careful watch to make sure the concessions are not too one sided in the other party's favor.