You're navigating internal pressure to close a deal. How do you handle concessions effectively?

Don’t give something for nothing (Jim Camp). Instead, aim for at least receiving something small in return - maybe something that is easy to give for the other party or even just a symbolic gesture - to keep fostering a sense of mutual respect and collaboration. The latter will be important to close the deal, and for both sides to keep delivering on what is agreed post deal completion.

Understand thoroughly, that timing & pressure are inextricably connected (or should be), if they are not, the chances of achieving the "highest and best results" as we strive for in the Comprehensive Negotiating Skills Universal Framework (CNSUF), are nearly impossible. 1st step, ask for an extension of the deadline, if it is granted, you've lifted the "pressure", and can continue to strategize. 2nd step, assess the consequences of not meeting the deadline? If you can withstand the consequences, you can shift the burden of "pressure" from you, on to your counterpart. 3rd step, test the limits of your counterparts "risk tolerance", often you'll find that theirs is less than your own. 4th step, set up a no cost consult with me.

Building early relationships in negotiations is a strategic move. Establish rapport early to gain a deeper understanding of their priorities and concerns. Ask the right questions and listen carefully. With this insight, tailor your concessions for maximum impact. If they’re worried about a software learning curve, offer additional training sessions. This shows you’re invested in their success, not just closing the deal. Genuine concessions build trust. Reflecting a real understanding of their needs shows flexibility and commitment, strengthening the relationship and smoothing future negotiations. Early rapport gives you the insight to make meaningful concessions, fostering a long-term, mutually beneficial relationship.

To handle concessions effectively under internal pressure, leverage contingent concessions and trial balloons to maintain strategic control and flexibility. Contingent concessions, like offering discounts for extended contract terms, ensure concessions are tied to specific outcomes. Trial balloons allow you to propose hypothetical scenarios to gauge the other party’s flexibility. Cultivate a culture of preparedness within your team through regular market updates and role-playing exercises. Use data analytics to inform your negotiation tactics, ensuring your concessions align with long-term goals. This proactive approach addresses immediate pressures and strengthens long-term business relationships.