Chapter 60 Compromise when necessary

The motor products produced by Taiz, an electrical equipment supplier, are at the advanced level in the world, with complete models and perfect services.When the company planned to enter Boston, the market there was already occupied by another motor production company, KFC.Taitz has been fighting hard, but has not been able to occupy a place.Later, they learned that Wood Company was planning to introduce electrical equipment, so they sent salesmen to negotiate with the other party.In order to break the monopoly position of KFC, Tates made a big concession on the price, and finally reached an agreement with the other party.Although this kind of concession allowed them to enter the Boston market, the price of products in Boston was much lower than that in other places, and it became very difficult to raise prices.

This case gave the negotiators an impression that they cannot make concessions in the negotiation, otherwise it will be very unfavorable to themselves.They believed that Tates could completely rely on its advanced products and perfect services to compete with KFC, and it would definitely win in the end. Indeed, in the negotiation, Taitz Company made a substantial concession in terms of price, which made their future operations fall into an unfavorable situation.However, the mistake of their company's approach is not that they made concessions in the negotiations, but that they made concessions in terms of price.Therefore, the role of concessions in negotiations cannot be denied because of this case.We can well imagine that if Tates had gritted its teeth and held their ground, they would not have been able to enter the Boston market.

In fact, during the negotiation process, it is impossible for both parties in the negotiation to make no concessions, otherwise no agreement can be reached.Since it is a negotiation, there must be room for communication.As we said earlier, negotiators are only trying to move the agreement toward the bottom line of the other party, rather than talking in a static manner.Arguably, it was the concessions that made the negotiations meaningful. It must be emphasized that the negotiators' concessions are not aimless, meaningless, and unprincipled compromises.Some negotiators do not intend to make concessions during the negotiation process; on the contrary, some negotiators make unprincipled compromises and concessions in order to achieve a certain goal.Both approaches lead to different outcomes, but neither is good for the negotiators.The former approach makes negotiators lose the opportunity to reach an agreement with the other party; the latter approach is more likely to reach an agreement with the other party, but this agreement is not good for one's own side.

In the process of negotiation, sometimes you should stick to your point of view, and sometimes you should make certain concessions.It is very difficult to grasp this measure.Therefore, we must pay attention to certain strategies in negotiations, that is, to make concessions when necessary.When negotiators make concessions in negotiations, they generally hope that the other party can also make concessions.This has two effects: one is to use one's own concessions to meet the needs of the other party, and the other party will meet their own needs; the other is to express one's sincerity and hope that the agreement will be reached.

In the process of negotiation, concessions should be regarded as part of the overall negotiation strategy, as a little sacrifice to achieve your ultimate goal.Therefore, concessions should be made in a planned and step-by-step manner.In the preparation process before the negotiation begins, negotiators should have a clear understanding of the concessions they can make and the concessions the other party can make, and should not be clueless.As I said before, we must consider the other party's bottom line and your own bottom line, because these two bottom lines are the ultimate reference objects for concessions.

Whether to make concessions and how to make concessions are the two basic factors of concessions.Let me briefly introduce some principles that must be mastered when making concessions: In the initial stages of negotiations, don't rush to make concessions in a rush to reach an agreement.In most cases, the person who concedes first will be in a passive situation, because it seems that he wants to reach an agreement more, and this negotiation is more important to him.In this case, the other party will definitely put forward their own requirements further, and will also have an advantage in the negotiation psychology.

Therefore, try not to give in to the other party in the first place.You must maintain confidence in your product or service and let the other party feel your strength.Of course, when appropriate, you should show your negotiating sincerity by making concessions.However, you must let the other party understand that you have to make concessions-only such concessions are positive concessions. Because concessions have nothing to do with issues of principle, they are to achieve one's overall goals and are part of the overall negotiation strategy, so concessions can be made on some minor issues.Such a concession will not require you to make too much sacrifice, but will only win the final victory.

Correspondingly, no concessions of principle can be made.This kind of compromise will make you lose your own goals, and in the end, you will not be able to reach an agreement in your favor.It's like talking to your opponent for an hour, only to reach an agreement that doesn't benefit you at all.Such unprincipled concessions are of course not advisable. If those concessions on minor issues cost you a lot, then you must not give in either.Under certain circumstances, concessions on secondary issues may have more serious consequences than concessions on principled issues.It cannot be analyzed simply by primary or secondary criteria.In many cases, minor issues can also cost you more than you can afford.

If you concede too much, the other party may miscalculate your limit, so it will be more difficult for you to achieve results.For example, as a seller, if you make a relatively large price cut, this will inevitably make the other party suspect that your product is not as good as you imagined; and if you only take small concessions every time, the other party will think that he is not as good as you think. You've reached the bottom line.You are more likely to reach an agreement sooner. Every time you make a certain concession, you must judge the value of your concession in the other party's mind.Before that, you have already mastered some information about the other party, and learned some important issues such as the other party's strategy and bottom line, so you can accurately predict the impact of your own concessions.Sometimes, it is a small concession for you, but the other party cares about it very much. This kind of concession should be chosen as a matter of course, and there is no need for you to make concessions that are not even important to the other party.

When the other party asks for a concession, you should carefully consider the request and make a prudent decision.Sometimes the other person's request is not a big problem for you, but sometimes it conflicts with your principles.In the latter case, you should deny the other party's request. Don't easily agree to the other party's request just because you need to reach an agreement, because the other party has the same demand, otherwise you will not sit together and negotiate.