Making concessions in negotiations, although grudgingly, is critical if you want a robust and thriving contract relationship. Why is that? What’s the purpose, role, and importance of making a concession? Let's find out, shall we?
According to Merriam-Webster.com the definition of a concession is: “Something done or agreed to usually grudgingly in order to reach an agreement or improve a situation.”
Well, there you have it. The purpose and role of making a concession are to reach an agreement or improve the situation.
I like the addition of “usually grudgingly.” Take it from me, it’s “always grudgingly,” period. The only time it feels easy, is when you know you’ll get a riveting trade-off later. Nobody in business likes to give away something for nothing, except when you are a true Samaritan and do something good for your community. But that’s not the angle right here — we’re talking about making concessions in a negotiation process, so with a business rationale. But as the definition tells you too, “in order to reach an agreement,” you just must learn to make concessions. Be it “grudgingly,” you must.
Savvy negotiators know that they have to give away something every now and then to accomplish favorable settlements. They master the art of conceding strategically. They know their opposing party’s underlying needs, use these to create room to maneuver, and move the negotiation towards a favorable outcome with only the smallest concessions.
When and how do you make concessions the right way, without looking like a complete jackass after the dust has settled? How do you use concessions to have successful negotiations and get the results you want? If you want to know the answers to these — and more — questions, read the other posts.
So now you know what concessions are, and what the purpose, role, and importance of making them during negotiations are, how do you go about it? You'll learn how to make concessions in the next posts. First, read on to learn about the 5 most important essentials in making a concession in negotiations »
As you learn in these series, knowing when and how to make concessions in negotiations is vital to reaching an agreement. But there’s a caveat… all this moving back and forward with proposals makes you lose oversight in the blink of an eye. Stay in control. Get a firm grip on the redlining processes that enable you to be a concessions-pro… a negotiations ace! Make sure to keep the backdoor closed. Redlining Contracts »
The Top 10 Negotiation Power Hooks »
Concessions 101 »
Essentials in Making a Concession »
Timing in Making a Concession »
How to Make Concessions »
How the Rolling Stones Help You Nail Concessions »
The Most Innocent Yet Dangerous Negotiation Question »
Be sure to check on my website every now and then because I will dive into more Negotiation Power Hooks many times to come, giving you more tips and tricks of the trade on how to negotiate for extraordinary contracts.