Part 6 - Put a Value on Every Concession: Know Your Worth

Day 6 - Put a Value on Every Concession: Know Your Worth

Why This Matters:

When a potential client is asking for a concession, it’s more than likely they already know the value of what they’re asking for. As a supplier, you should be just as informed.

The key? Don’t just give in—dig deeper. Ask probing questions about why this concession is valuable to them and how it fits into their overall needs. This approach not only helps you understand their priorities better, but it also gives you the opportunity to tailor your proposal in ways that might be more cost-effective for you. In other words, you might be able to “concede” while still keeping some of the value for yourself. 🎯

A Positive and Defensive Strategy:

This tactic isn’t just about offense; it’s a great defensive move too. In pushy or aggressive meetings, where you might feel pressured into a concession—perhaps by a Good Cop, Bad Cop routine—knowing the value of what’s being asked gives you the leverage to slow things down. If you can’t immediately assess the impact of a concession, buy yourself more time to evaluate.

Things to Consider Before Making a Concession:

1. Does this affect how I have to buy items from my suppliers?

If the concession impacts your supply chain, it might increase your costs in ways you haven’t fully considered.

2. Does this affect how my workers have to work?

Will this concession require your team to work longer hours, change their processes, or take on additional stress?

3. Does this affect how I deliver the product?

Changes in delivery terms could disrupt your logistics and add unforeseen expenses.

4. Will my client actually be happy with the end product after these concessions?

Sometimes, concessions made under pressure can lead to a final product that doesn’t meet the client’s expectations.

5. Will these concessions affect how end consumers view my product?

If your product’s quality is compromised or perceived differently, it could affect sales in other markets or damage your brand reputation.

Final Thoughts:

Putting a value on every concession is not just about protecting your bottom line; it’s about maintaining the integrity of your business. By understanding the true cost of what’s being asked, you can navigate negotiations with confidence, ensuring that you’re not giving away more than you can afford.

Next time you’re in a tough negotiation, remember: If you can’t immediately put a value on what’s being asked, it’s okay to pause and reassess. A well-considered concession can strengthen a relationship, while an impulsive one can unravel it.

#Negotiation #ValueYourConcessions #BusinessTactics #CorporateStrategy #Leadership #SupplierManagement