Now let me teach you about Patterns of Concessions. If you’re involved in extended negotiations over price, be careful that you don’t set up a pattern in the way that you make concessions. Let’s say that you sell equipment and you’ve gone into the negotiation with a price of $15,000, but you would go as low as $14,000 to get the order. So, you have a negotiating range of $1,000.
The way in which you give away that $1,000 is critical. There are four errors that you should avoid when making concessions:
Error Number One: Equal-sized concessions. This means giving away your $1,000 negotiating range in four increments of $250.
$250 $250 $250 $250
Imagine what the buyer’s thinking if you do that. He or she doesn’t ...