Concession Trading

The problem with making concessions is that making one from a position of weakness can lead to requests for you to make a series of follow-on concessions. Alternatively, if you are not in an obviously weak position, and are seen to be too ready to make concessions, then the other side may start to feel that the underlying deal must be biased to your advantage.

Another important aim during the bargaining phase is to get the other side used to making concessions. A good tactic here is to get them to make a few minor concessions at the start of negotiations - as this will lay the groundwork for obtaining more important ones later on.

If the other side refuse to make any significant concessions then this may indicate that they are not negotiating in good faith. Furthermore, if the other side have got used to giving little, or nothing, away then they may assume that they are in the stronger position as the negotiations draw to a close.

The concessions made by both sides are key to the outcome of the negotiations. It is important to avoid making the first major concession, as the other side will gain a significant psychological advantage from it.

Concessions should be planned in the preparation phase and offered in reverse priority, contingent on the other side making some movement in return. Try to avoid making concessions when you are under pressure and make the other side work hard for any movement in your position.