Never give away concessions when negotiating…

Never give away concessions…

Concessions are for trading, not giving away; so never give anything away without getting something in return. If you do, you are not negotiating at all, you are giving in.

There is also another excellent reason for not giving away concessions. A concession given away too easily does not make the person who won it feel good, because they got it far too easily.  You must therefore always ask for something in return. It could be as simple as ’If I do that for you, will you sign an order today?’

As part of your preparation for negotiation, you must know all of the variables you can negotiate on if you have to and these will of course vary depending upon what you are selling. They could include:

  • Getting all of the project rather than the part of the project
  • Delivery times or delivery methods
  • Changing the size of the order
  • Changing the specification
  • Offering a different model
  • Getting advance payments or deferring payments
  • Standard colours rather than custom colours
  • Ownership of the tooling
  • Limited or extended guarantees
  • Installation charges
  • Training requirements
  • Lower or variable servicing costs

The items you list are your variables, bargaining chips and possible concessions; so the more you have – the better. Allocate them some real financial value during your preparation for negotiation and you are far less likely to have to reduce your price when you bargain with these.

Bruce King

More on negotiating strategies:

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