Concessions are an essential negotiating tool, but use them wisely.
Consider the future impact of potential concessions. Today’s concession becomes tomorrow’s customer expectation. So don’t give away the store today or you’ll have nothing to give tomorrow.
Make sure you get a concession for every one you give. Instead of saying, “Yes, I can reduce my price by 10 percent,” say, “If I can do that, would you be willing to add a third year to the agreement?” Be sure you know what concessions you want from your customer.