Successful negotiations are often the result of concessions from both parties. Generally speaking, it is rare for one party to have a complete advantage in a negotiation. Only mutual concessions can reach an agreement. In negotiations, concessions also have certain skills. It is neither blindly tolerant nor stubborn. Smart negotiators achieve their preset goals little by little through concessions and progress. The ideal result is that after you make concessions, the other party will also make concessions immediately.
The advantage of concession skills in negotiations is that it is easier to let the other party enter your preset target area little by little. Compared with slightly strong bargaining, concessions will give both parties more room for negotiation. Moreover, even if there are differences or even conflicts between the two parties, possible progress can be made through concessions from one party
Of course, concessions do not always have good results. When an e-commerce company makes concessions, the supplier may think that their previous conditions are “watery” and not only do they not make concessions in the same way, but they make more demands, or think that these concessions are insignificant and still maintain a very tough attitude. In negotiations, this situation is actually not conducive to e-commerce companies taking the initiative. Therefore, e-commerce companies should master the skills of concessions to ensure that the other party also makes concessions while they make concessions.
What concession techniques can e-commerce companies adopt during negotiations?
(1) Make the concession details clear
If e-commerce companies want to lead suppliers to make concessions by making concessions first, they must make the concession details clear, including the conditions, objects, reasons and specific standards for the concessions, so as to avoid new problems and conflicts caused by concessions. If e-commerce companies want suppliers to make concessions immediately, they can add some details that are closely related to the interests of suppliers.
It should be noted that the concessions made by e-commerce companies must have a basis and standards, and suppliers must clearly feel their sincerity. Of course, e-commerce companies can also show the difficulties and problems of procurement. For example, if you are negotiating on behalf of an e-commerce company, you can tell the supplier that it is okay to reduce the profit by 1 percentage point, but such an unauthorized decision will definitely be difficult to explain to the leader, and may even affect future negotiations. At this point, the supplier should know that only by making concessions can the negotiation proceed smoothly.
(2) Concessions and compensation
If an e-commerce company makes concessions, it should try to get suppliers to make double or at least equal concessions in other aspects. Therefore, concessions and compensation often exist at the same time, that is, if you lose in one aspect, you should also find ways to make up for it in other aspects, so as not to lose the meaning of the negotiation. Of course, if the e-commerce company believes that the supplier’s concessions have brought benefits to itself during the negotiation, it should also stop at the right time to maintain its overall advantage
(3) Seize the right opportunity
If an e-commerce company wants to make progress in the negotiation through concessions, it must put forward conditions at the right time so that the supplier can meet the bargaining requirements as much as possible. As for when the e-commerce company should put forward conditions, it needs to be based on objective conditions, and cannot rely solely on some subjective factors. Under the premise of following the principle of concession, the e-commerce company must selectively put forward concession conditions to the supplier.
(4) Adhere to principles and bottom lines
In negotiations, both parties have their own principles and bottom lines, and will not easily violate principles or exceed bottom lines. Therefore, e-commerce companies should stick to the limits and content of concessions, and should know which aspects can be compromised and which aspects cannot be compromised. Even if e-commerce companies are in a relatively disadvantaged position in negotiations, they should strive to get the expected return. From a practical point of view, the concession strategy is best to start small and then increase in strength. If e-commerce companies make concessions immediately at the beginning of negotiations or when encountering resistance, it is easy for suppliers to develop “resistance”. After all, concessions are also time-limited. It is actually difficult to meet the requirements of suppliers by relying solely on concessions, and it is unrealistic to make concessions blindly. Therefore, e-commerce companies should adhere to principles, stick to the bottom line, and strive to exchange the most effective benefits at a relatively small cost. Moreover, e-commerce companies must ensure that while making concessions, suppliers also make at least equal concessions. The reason why concession skills are emphasized is that concessions imply a double-layer result in negotiations, which may make e-commerce companies more advantageous or may cause e-commerce companies to lose more. Therefore, concessions must pay attention to certain strategies and methods. In addition, e-commerce companies must also formulate strict concession plans in key links such as bargaining, payment, delivery, and after-sales.
Tips
Concession-based negotiations are about retreating in order to advance. It is best or necessary to retreat one step and then take two steps forward. Peace is the most valuable thing, rather than always being tough and unnegotiable. Small concessions are often more effective. After all, negotiations are achieved through you advance and I retreat or I advance and you retreat. Finally, e-commerce companies should pay attention to one issue, that is, they cannot make concessions without rewards. It is best to let suppliers make concessions first, and then make equal concessions in minor aspects.