Preemptive Concessions in Negotiations
Article by Omid G
The Rookie Mistake You Might Be Making
So many procurement professionals—and sales professionals, too—make the fatal flaw of offering preemptive concessions in negotiations.
It just happened to me last weekend.
I was at a simple kiosk on a beach boardwalk. I told the vendor I wanted to buy four of a particular item. I knew the price—$50 total—and clearly conveyed intent to purchase.
The vendor said:
“Well, if you want to buy 4, I’ll give them to you for $40.”
Just like that, he gave me a discount—without me asking.
I was about to pay full price, but his lack of awareness cost him $10 in pure profit.
That’s a preemptive concession: offering a discount or negotiation point without pressure or demand from the other side.
Where It Comes From: The 3-Legged Stool of Mistakes
Preemptive concessions usually stem from one (or more) of the following:
Bad negotiation form (not knowing better)
Lack of information about the other party’s willingness to accept your terms
Lack of confidence in your negotiation positions (which is often due to #2)
Like a three-legged stool—if any leg is weak, it all falls down.
A Simple Example in Dialogue
Seller:
“What are you looking to get in terms of pricing on our product?”
Buyer:
“Our target here is a 15% discount... but we’re willing to sit down and discuss.”
Caught it?
That second line—"but we’re willing to sit down and discuss"—is a preemptive concession.
The buyer just weakened their own position... voluntarily.
Why?
Possibly bad form (they were trained that way)
Possibly didn’t do their research
Possibly insecure about whether their pricing target was valid
Most likely, it was #2—they hadn’t done their homework, and without that, confidence collapses.
Good Lawyers Know This Rule Cold
A great lawyer never asks a question in court unless they already know the answer.
Why?
Because they’ve already done:
Depositions
Subpoenas
Evidence analysis
They walk into court with:
Good form
Good information
Rock-solid confidence
The same applies to procurement. Don’t negotiate unless you’re prepared.
My First Ever Corporate Negotiation
I’ll never forget it.
It was 30 years ago, and I was negotiating logic analyzers and oscilloscopes for a Fortune 50 company. I thought the size of my company gave me all the power I needed.
We were getting 12% off. I confidently asked for 15%.
The seller’s response?
“Why 15%? Why not 18%? Why not 25%?!”
I was stunned. I had no answer. I hadn’t done the work. I learned right then:
No one leg of the stool can make up for the others.
How to Avoid the Trap
Your preparation is your power. That means doing your homework, including:
Benchmarking against competitors
Identifying supplier discount schedules
Performing should-cost / must-cost / total-cost analysis
Evaluating bargaining power
Researching alternatives and substitutes
Simplifying specs for better TCO
Considering dual/multi-sourcing models
With all this in place, you’ll be able to:
Take positions with externalized behavioral confidence
Back them with internal data-driven rationale
Concessions? Sure, they can be made—but never preemptively, and always with intention.
Now Go Off and Do Something Wonderful
Be your best.
– Omid G.
“THE Godfather of Negotiation Planning” ~ Intel Corp