Concession
What is a Concession?
A concession is step-by-step giving in to approach an agreement in a negotiation. By deliberately granting concessions, the parties move toward each other – ideally in exchange for something.
Concession in Detail
Concessions are the engine of any approach: for opposing positions to become an agreement, at least one side must move. But how you make concessions strongly determines the result. Proven principles are: never give concessions “for free” but tie them to something in return (“If you do X, then I can do Y”); grant them in a controlled way and in ever smaller steps (this signals that you are approaching your limit); do not give in too quickly or too much (otherwise the starting value seems inflated and you give away room); and never reveal your own reservation price. It is also important to make concessions visible as such, so that they are valued. From a tactical view, there are counterparts such as nibbling (small additional demands) and salami tactics. Those who use concessions wisely steer the approach, protect their position, and at the same time enable an agreement. Those who, by contrast, give in carelessly or too generously give away value and signal weakness. The conscious handling of concessions is thus a core competence of successful negotiating.
In practice, concessions are the engine of any negotiation: through step-by-step giving in, the sides approach an agreement. What is decisive is how you make them. It is proven practice to give concessions not too early and not too large, to always justify them, and if possible to demand something in return, so that they are not taken for granted. Ever smaller concessions signal that you are approaching your own limit. Those who give in too quickly or one-sidedly give away room and awaken appetite for more. It is important to know your own limits in advance, so as not to go beyond them in the heat of the moment. Concessions should ideally be part of a package rather than isolated individual steps. Wisely steered, they lead to a fair agreement without unnecessarily weakening your own position.
How do you make Concessions wisely?
A concession is step-by-step giving in to approach. You grant it wisely never for free, but in exchange for something, in a controlled way and in ever smaller steps – and without revealing your own reservation price. This way you steer the approach and protect your position.
Concession – Examples in Practice
A seller grants a discount only in exchange for a larger purchase quantity. A negotiator gives in in ever smaller steps. Someone makes a concession visible so that it is appreciated.
Concession: Key Features at a Glance
- Definition: step-by-step giving in to approach
- Rule: never without something in return
- Technique: ever smaller steps
- Caution: do not reveal the reservation price
- Visibility: have concessions appreciated
Related Terms
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Concession: Frequently Asked Questions
What is a concession?
A step-by-step giving in to approach an agreement in a negotiation – ideally in exchange for something, in order to move toward each other.
How do you make concessions wisely?
Never for free, but in exchange for something, in a controlled way and in ever smaller steps – and without revealing your own reservation price.
Why should you not give concessions too quickly?
Because giving in too fast or too much makes the starting value seem inflated, gives away room, and signals weakness.
What do concessions have to do with nibbling?
Nibbling uses small additional demands shortly before the close. Those who steer concessions deliberately and tie them to something in return also protect themselves against such tactics.