Golden Rule No. 4: If You Have to Give Ground, Do So in Small Steps
Regardless of the potential compensation, the strategy of making concessions is a key element in negotiating. You must observe six key principles:
- Avoid being the first to make a major concession. In practice, during the trial of strength between buyer and seller, whichever of the two is the first to back down on a crucial issue loses out twice over: he loses out in terms of position and perception.
For example, a manufacturer wants to sell at $100; a user wants to buy at $80. If one of them quickly proposes $90, he loses out twice over: He sees a reduction in his potential profit, and he clearly shows his counterpart that he is prepared to greatly reduce his demands in order ...