Concessions – Strategic Compromise in Business Negotiation

Concessions

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Are concessions a sign of weakness in negotiation — or a strategic tool? The answer depends on how and when you use them. Concessions, when used intentionally, can build trust, create value, and move both parties toward a successful agreement.

Concessions in negotiation

Concessions in negotiation refer to compromises made by one or both parties in order to reach an agreement. These can involve changes in price, delivery terms, scope, or other conditions. A concession is not a loss if it’s used strategically — it’s an investment in closing the deal.

Concessions meaning

A concession means giving something up — but in negotiations, it’s often part of a tactical move. It signals flexibility and willingness to collaborate. However, unplanned or unreciprocated concessions can lead to imbalance or mistrust.

What are concessions in a negotiation?

They are deliberate compromises made to bring the parties closer to agreement. A concession might involve a discount, extended timeline, added service, or policy adjustment. Effective negotiators label their concessions to highlight their value and to prompt reciprocity.

What does concede mean in negotiation?

To concede means to yield or accept a demand made by the other party. But in professional negotiation, it should be part of a strategy — not a reaction. Concessions should always be tied to a return, even if symbolic. This maintains balance and sets expectations.

What is the difference between bargaining and concessions?

Bargaining is the overall process of give-and-take that defines negotiation. Concessions are the individual steps — the specific gives — made during that process. Bargaining can happen without major concessions if both parties stay close to their initial positions.

How do you go about making concessions during the negotiation?

Plan ahead. List what you’re willing to give, in what order, and under what conditions. Label each concession clearly (“we’re offering a 5% discount for faster payment”) to reinforce its value. And always ask for something in return, even if it’s symbolic.

How do I ask for concessions?

Use respectful framing: “Would it be possible to extend the delivery timeline given our current constraints?” or “In exchange for moving forward today, would you be open to revising the warranty terms?” Make it easy for the other party to say yes — but always create room for discussion.

ENS Methodology: Strategic use of concessions

At Hovingh & Partners, concessions are used as conditional proposals within the ENS negotiation strategy. They are deployed in phase 3 (Proposing) and linked to movement — never unilateral, never free. We train professionals to frame each concession as part of a value exchange that reinforces credibility and collaboration.


Learn how to apply concessions in real-life negotiations — explore our negotiation training.