What Are Concessions?
These are things that you give up during negotiations in order to get something in return or because you have been compelled to give it up. Both scenarios are either good or bad because a lot depends on what you take out of the table and not what transpires during the period of negotiation.
Concessions are an integral part of any form of negotiation and are tools that are deployed by both parties to further their cause.
When Can You Make Concessions?
There are several situations when you can make concessions but they all serve to further the cause of the parties involved in the negotiation.
You Can Use Concessions To Get Something From The Other Party
It is a way of trading benefits between you and the other party involved in the negotiation. you will find it easier to make concessions when you lock it to what you are hoping to get from the other party. In such a case, you might be the one offering to give a concession while you state the condition in which you will do such a thing. The condition may be a demand for a reciprocal concession on the part of the other party. Such an exchange can also be demanded from you and you may counter it with one of you own.
When What Is Offered Is Commensurate Or Will Serve You In Another Way
You use concession when the other party offers you something that might not be what you want but will serve you in other ways. Negotiation is not necessarily about getting what you want but what you can live with and concessions play a classic role in this. What you are offered may open a new angel you never thought of and accept it even when you have tacitly lost out on what you originally planned.
Why Do People Allow For Concessions?
Whereas most do not want to concede on any point or allow the other party to gain much during a negotiation, it is common to use concessions to break a logjam. The deadlock is usually brought about when people are unwilling to budge on an item, the concession in such cases might come in both parties partially losing as it were as each takes some kind of consolation from the fact that the other person did not get what they wanted.
It Is Used To Move A Deal Forward
Continuing from where we stopped above, concessions does not just break a deadlock but it moves the deal forward. Most deals have timetable and carefully spelt out stages. The timetable may be there to force people to agree on a matter or may just there out of necessity but what concessions do is to break the delay and make sure the negotiation continues. Moving he deal forward means they will not be in danger of being cut short by the deadline.
It Used To Gain Something In The Future
There are times when people allow a concession on their part only to gain something in the future. It may take some very careful planning but what they gain may be more that what they lost when the allowed the concession. This makes it a tool that can be very strategic.
It Is Used To Buy Time
This may come as a surprise but concessions can be used to buy time. Buying time might also mean wasting time and people can create artificial deadlock to buy as much time as possible only to concede to something when they have fulfilled the reason for the deadlock. Buying time can be in any form but the point is that concessions can be used to buy time during the negotiation.
Concessions Can Be Traded For Something Bigger
Depending on how badly the other party may need something, concessions can be used to get something bigger. You can say if I give you this if you will give me that and what you are asking for may be bigger than what you are giving. The only thing that comes into play here is the value placed on the items in question by both parties. They may both be willing to let go of one to get the other depending on how each see the items with respect to the negotiation at hand.
Concessions are very important during negotiations. People tend to go into such negotiation knowing what they will be willing to use as tools to get what they want from the other party. They may not be aware of what the other party wants to demand but they will consider it when such as offer is made and take a decision that is based on how they value what they lose against what they will gain.
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