The Dos And Don'ts Of Concession-Making
Negotiation is a complex process, and one of the most important parts of it is concession-making. A concession is when one party in a negotiation gives up something to the other party in exchange for something else. Concession-making can be a powerful tool for reaching agreement in a negotiation, but it can also be a tricky process. In this article, we’ll explore the dos and don'ts of concession-making, to help you negotiate effectively.
Do: Prepare for the negotiation
Before you start the negotiation, you need to be prepared. This means doing research on the other party, knowing your own needs and goals, and understanding the market. You should also have a clear idea of your BATNA (Best Alternative To a Negotiated Agreement), which is the course of action you will take if you can’t reach an agreement with the other party. Being prepared will help you know what you can offer and when to make concessions.
Don’t: Give away too much too soon
Concession-making is a delicate balance. You want to give away enough to reach an agreement, but you don’t want to give away too much too soon. If you give away too much too soon, you may find yourself in a weaker position to negotiate further. It's important to understand the other party's needs and interests, so that you can make concessions that are strategic and not too generous.
Do: Make concessions with purpose
When making concessions, it's important to make them with purpose. Every concession you make should be strategic, and should bring you closer to your goal. Don’t make concessions just for the sake of making concessions. Each concession should be a part of your overall strategy for reaching an agreement with the other party.
Don’t: Be afraid to walk away
Sometimes, no matter how much you negotiate, you just can’t reach an agreement. When this happens, don’t be afraid to walk away. Walking away is a powerful tool in negotiation, as it shows the other party that you are willing to walk away from a bad deal. You should also make sure you have a BATNA in place, so that you can move on to your next best option if needed.
Do: Look for creative solutions
Sometimes, making concessions isn’t enough to reach an agreement. In these cases, it's important to look for creative solutions that can benefit both parties. This might involve looking for trade-offs, or coming up with a completely new solution that addresses both parties’ needs. Creative solutions can be a win-win for both parties, and can help build a stronger relationship.
Don’t: Make a concession without getting something in return
When making a concession, it's important to get something in return. Otherwise, you’ll be giving away something for nothing, which isn’t a good negotiation strategy. This doesn’t mean that you should always expect a direct exchange for every concession you make. Instead, look for other ways to get something in return, such as building trust or getting a commitment on another issue.
Do: Recognize the value of concessions
Concession-making is an important part of negotiation, and it's important to recognize its value. Concessions can be the key to reaching an agreement, and can help build a stronger relationship with the other party. Making concessions can also show the other party that you are willing to work with them and find a solution that works for both parties.
In conclusion, concession-making is a critical part of negotiation, but it requires skill and strategy to be successful. By following these dos and don'ts, you can make concessions that are strategic and effective, and reach an agreement that is beneficial to both parties. Remember to be prepared, make concessions with purpose, and always look for creative solutions. With these skills, you'll be able to negotiate effectively and achieve your goals.