Concessions in Negotiation: What They Are & How To Use Them Strategically

If you have ever walked out of a negotiation thinking, “We gave away too much… and I am not even sure they noticed,” you are not alone.

Concessions are one of the most misunderstood parts of negotiation. People talk about them like they are a sign of weakness. Or they use them like a panic button when things get tense.

In reality, concessions are simply movement. Used well, they help you trade your way to a better deal while protecting the relationship. Used poorly, they quietly drain value, credibility, and momentum.

This article breaks down the concession definition, what “concession” really means in negotiations, and a practical way to use concessions strategically using the Aligned Strategic Framework (ASF).

What is a concession in negotiation?

A concession is something you give up or soften in order to move a negotiation forward.

That might be:

• A price reduction
• Faster delivery
• Longer payment terms
• A change in scope
• A policy exception
• A commitment on timeline, resources, or service levels

The key point is that a concession has real value to someone. Sometimes it is financial. Sometimes it is risk. Sometimes it is convenience, certainty, or status.

If it does not cost you anything, it is not a concession.

Concession meaning: give with intention (not for free)

Most leaders do not mind making concessions.

But they mind making them:

• Reactively
• Too early
• Too often
• Without getting anything meaningful back

That last one matters most. A concession becomes a strategic error when it is an attempt to buy comfort.

You feel pressure. You want to keep things friendly. You want to “keep the deal alive.”

So you give. And suddenly you have trained the other side that:

• Pressure works.
• Waiting you out works.
• Asking one more time works.

That is not relationship-building. That is habit-building.

Concessions live in the Propose phase, but they are built in Prepare

In the ASF, negotiation performance is anchored in Relationships, Process, and Goals, across the Four Phases of Negotiation (Prepare, Communicate, Propose, Align.) 

Concessions sit most visibly in Process, especially in the Propose phase (the moment you are exchanging terms and shaping the deal).

But you earn the right to make smart concessions earlier, in Prepare. If you have not done the work up front, concessions tend to become emotional decisions instead of strategic moves.

A simple rule: trade, do not concede

In modern B2B negotiations, most of what people call “concessions” should actually be trades. A practical way to think about it:

• Concession: You give something up and receive nothing of equal value.
• Trade: You give something up conditionally and receive something you value in return.

That is why one of the strongest coaching prompts in ASF is:

If you are making a concession, what are you getting in return?

And why the most useful sentence stem in negotiation is still:

“If we do X, could you do Y?"

It's direct, respectful, and makes reciprocity explicit.

Why concessions go wrong (and what to do instead)

Here are the most common concession mistakes we see in enterprise negotiations, plus the ASF-friendly fix.

1) You concede too early

Early concessions feel collaborative, but they often get interpreted as slack.

Do this instead:

• Spend more time in Communicate before you move terms.
• Ask: “What does success look like on your side?”
• Gather constraints and motivations so you can trade on what matters.

2) You concede in big chunks

A large concession creates a new reference point. It also makes it harder to move again without looking inconsistent.

Do this instead:

• Move in smaller, decreasing amounts.
• Signal that each move has a cost.

This is a classic discipline move because it communicates you are nearing a limit without needing to threaten.

3) You do “double-gives”

A double-give is when you make a concession and then immediately add another sweetener “to keep it positive.”

It feels generous. It is usually unnecessary.

Do this instead:

• Make one move.
• Stop.
• Let it land.

As our training language puts it: avoid double-gives, and sequence Gets before Gives.

4) You concede to reduce internal friction

This one is painful and common. A deal team gets tired. Internal stakeholders are misaligned. The easiest way to end the tension is to give the other side what they want. But that is not negotiation strategy. That is conflict avoidance.

Do this instead:

• Re-anchor on Goals. What is the Goal Zone? What is the walkaway?
• Fix internal alignment before you “solve” the external problem.

It's this simple: when you are not aligned internally, you default to concessions.

A practical concession strategy you can actually use

Use this as a quick checklist before you move on any term.

Step 1: Name the negotiation type

In ASF, context matters. A concession strategy that works in Bargaining can damage trust in Partnering. Ask yourself:

Are we in Bargaining, Trading, Creating, or Partnering?

If you are in Trading or Creating, concessions should often be reframed as bundles and trades.

Step 2: Clarify your “Gets and Gives”

Before the meeting, list:

• What you can give (and what it actually costs you)
• What you want to get (and what it is worth)

The goal is not to be rigid. The goal is to avoid improvising with your margins.

Step 3: Decide your movement plan

Go in knowing:

• Where you start (your opening position)
• Your planned path of movement
• Your limit

This is how you avoid “splitting the difference” by accident.

Step 4: Make concessions conditional

Use language that makes the trade explicit:

• “If we could meet that timeline, could you commit to a two-year term?”
• “If we reduced the fee, could you simplify legal redlines so we can sign this week?”
• “If we add that capability, what can you remove from scope?”

Notice the pattern: movement comes with a request.

Step 5: Label your concessions

Do not assume the other side will notice. Say:

• “To be clear, this is a meaningful move for us.”
• “We are doing this because we value the partnership, and we need X in return.”

It is not dramatic. It is professional.

Step 6: Align at the end

Concessions create confusion when they are not captured.

In Align, confirm:

• Final terms
• Owners
• Deadlines
• Next steps

Leave nothing down to assumption.

Concessions and relationships: the counterintuitive truth

Protecting the relationship does not mean conceding. In many business contexts, clarity is what protects the relationship.

A concession strategy that is disciplined and transparent often increases trust because it signals:

• You are consistent.
• You are thoughtful.
• You will not agree to something you cannot deliver.

FAQ: Concessions in Negotiation

What is the definition of concession in negotiation?

A concession is a movement on a term, position, or condition that costs you something, made to move the negotiation forward.

Are concessions always bad?

No. Concessions are normal. The risk is conceding without intent or without reciprocity.

What is an example of a concession?

Reducing your price, agreeing to faster delivery, expanding scope, or extending payment terms can all be concessions.

What is the best way to make a concession?

Make it conditional. Tie it to something you want and state the trade explicitly.

The takeaway

Concessions are not a failure. They are a tool. The goal is simple: never let concessions become your default way to manage pressure.

If you want a clean way to pressure-test your approach, start here:

• Are we clear on Goals?
• Are we running a strong Process?
• Are we protecting Relationships while staying disciplined?

That is the ASF lens. And it is how you stop “giving” and start trading.