Read through to learn more about trades and concessions.
- Something that you provide for which the other party provides something in return.
- Can be of equal or unequal value.
- Your goal is to trade one or more issues that are of less value to you for those of greater value.
- If you set up the idea from the start that if the Client asks for something, they are going to have to trade something, it stimulates the Client’s creativity and forces them to focus on their priorities.
- You always want to trade instead of concede even if it is something intangible.
Concessions: A concession is giving something at the request of another party and not requesting anything in return. For example delivering a category snapshot report to a client free of charge.
The problems with making concessions to your Client are:
- You set a precedent for future negotiations.
- You embolden the Client to ask for more.
- You stimulate them to hold positions, thinking you are going to concede.
- You erode the very nature of being collaborative. Making concessions by their very nature asks for nothing in return – that doesn't sound like collaboration.
When to make Concessions: If you do have to make a concession there are two places to make them:
- At the start to clear up a previous problem, like a late delivery. Be sure to stress what steps you have taken to ensure it does not happen again.
- At the end to close the deal, being sure that it is positioned as the last step to the agreement.
When You Concede: When you concede make it very clear what the cost of that concession is to you even if the Client does not value it.
- Specify this as a one-time event and not to be assumed for future negotiations.
- Remember that conceding anything devalues your products/solutions and sets the precedent with the Client that they can ask for something and give nothing in return.