Every negotiation will involve one or more concessions. However, there’s more to conceding than simply giving the other party what they want. It’s not just what you concede; it’s also the way in which you concede that can make or break your negotiation. What you need is a set of concession guidelines.
In case you missed it, we previously introduced our list of the 5 most common concession patterns used by high-performing negotiators, structured ways of “conceding a point,” meaning deliberately giving up commercial value (on price, terms, scope, or risk) to move the deal forward in a controlled, strategic way. While these patterns are helpful in understanding how best to concede and what to avoid, mastery of just the concession patterns alone doesn’t guarantee that you will get that critical negotiation edge that helps close more deals. Consider our concession guidelines as your “how-to” instructions.
Before jumping into the concession guidelines, take a moment to start your planning to ensure a highly effective negotiation. Download our Concession Planning Worksheet to start building your strategy.
How and when you are conceding a point can affect the other party’s perception of the value of your solution or your willingness to work toward an agreement.
One common mistake people make is conceding too eagerly, showing so much flexibility, that respect is lost. This sort of behavior teaches the other party to ask for more.
Another common mistake is being too stubborn and resisting concessions unreasonably. This sort of behavior teaches the other party to stand their ground, too, often leading to a stalemate.
The benefit of effective concession planning is establishing a reasonable concession range and balancing your competitive instincts with your collaborative nature. As you’ll see, the more comfortable you are with tension, the better you will perform. If you lack confidence under pressure and tension, take a look at our post on how to leverage tension for positive outcomes.
If you believe your offer is fair, do not concede a point unnecessarily. It is important to commit to the value of your offer to reinforce your power in the negotiation.
A common mistake people make is conceding a point too much, too easily, leaving little to bargain with later.
You should only concede if it’s a clear requirement for moving the negotiation forward, or if the other party has already made a concession of their own. Only then should you relent, and if you have to, make sure you get something in return (we’ll get to this later).
Avoid conceding a point too early; only make concessions after the other party has given something up first, or when it is absolutely necessary to keep the negotiation moving forward.
A common mistake people make is conceding too early in the process to “get the ball rolling.”
Consider using the martini concession pattern, initially holding steady before conceding as planned. When using this pattern, it is important to ask questions to draw out more information or multiple requests from your opponent in order to gauge the firmness of their position or the size and scope of your initial concession.
If you make concessions in the hope of moving the negotiation toward closure, be sure to get a concession in return.
A common mistake people make is conceding just to appease an objection, for example, immediately agreeing to a 10% discount when a buyer says your price is too high, without asking for anything in return. Instead, anchor your concessions in value-based trades, such as: “If we extend a 10% discount, can you commit to a 2‑year term and introduce us to your regional lead?” Failing to link concessions to clear, reciprocal value sends a negative message about the strength of your position and the real worth of what you’re giving up.
Getting something in return forces the other party to put some skin in the game, and it sends a message, “I’m not giving you something unless I get something back.” You reinforce the value of what you’re giving away by making them pay for it with a concession of their own, and you send a message that conceding is a two-way street. This also makes the other party think twice before asking for more.
Identify negotiables to meet the other party’s needs, and then use those that are low-cost first.
A common mistake people make is not understanding that the true cost of negotiables lowers the profitability of your deal.
During your planning, be sure to identify what you are willing to negotiate. Start by considering items that are low-cost for you but offer high value to the other party. These negotiables can provide the necessary wiggle room to concede in ways that serve to maximize the overall value of your agreements.
We all remember the tale of the tortoise and the hare, right? You should account for tension in your negotiation strategy and leverage it as a positive force. By taking your time and “stewing” in the tension, you can increase engagement and find creative ways to improve your outcomes. Negotiators who seek to avoid tension often make the mistakes outlined above and tend to concede too quickly and too easily. The more comfortable you are with tension, the easier it will be to draw out your opponent’s offer and increase your chances of establishing a position of power.
Remember, at the end of a negotiation, people need to feel good not just about the results of the deal, but about the actual flow and exchange of value of the negotiation itself. People need to feel that they worked hard, were treated fairly, and reached the best possible agreement.
Conceding a point is simply saying “yes” and moving on; trading value is intentionally linking what you give to what you get. An effective concession strategy avoids free gifts and uses each movement as an elegant negotiable something you can trade, shape, or repackage to close the execution gap between agreement and implementation. Instead of dropping price, for example, you might trade for a longer contract term, faster payment, or access to additional stakeholders. In doing so, you protect margin, reinforce your value, and signal that every concession has purpose and conditions attached.