Preemptive Concessions in Negotiations
Many procurement and sales professionals make one fatal mistake in negotiations — preemptive concessions.
A Real-Life Example
Just last weekend, I was at a kiosk on a beach boardwalk. I wanted to buy four of a particular item. I already knew the price — $50 in total — and was ready to pay.
The seller immediately responded:
“Well, if you want to buy 4, I’ll give them to you for $40.”
This was a classic preemptive concession — giving a discount without the other party asking for it. If he had been paying attention, he would have realized I was ready to pay the original $50.
What is a Preemptive Concession?
A preemptive concession is when you give away value before the other party even pushes for it. It’s a rookie mistake, and it usually happens because of one (or more) of these three reasons — the three legs of the stool:
Bad negotiation form – Simply not knowing better.
Lack of information – Not understanding the other party’s willingness to accept your terms.
Lack of confidence – Often tied to #2, because preparation builds confidence.
If even one leg is missing, the stool — and your negotiation — collapses.
How It Happens
Consider this scenario:
Seller: “What are you looking to get in terms of pricing on our product?”
Buyer: “Our target is a 15% discount, but we are willing to sit down and discuss.”
The moment the buyer says “but we are willing to sit down and discuss,” they’ve made a preemptive concession.
Why?
They may have been trained poorly (#1).
They may not know the supplier’s pricing structure (#2).
They may lack confidence because their price target was arbitrary or unresearched (#3).
The Legal Analogy
A skilled lawyer never asks a question in court without already knowing the answer. They do depositions, subpoenas, and evidence analysis beforehand. By the time they’re in front of the jury, they have:
Good form
Good information
Good confidence
Negotiators must prepare in the same way.
My First Corporate Negotiation Lesson
My first negotiation was for logic analyzers and oscilloscopes — 30 years ago. I worked for a Fortune 50 company, spending big money, and thought that was enough to demand better terms.
We were getting a 12% discount, and I asked for 15%. The seller replied:
“Why 15%? Why not 18%? Why not 25%?!”
I had no answer. My confidence wasn’t backed by research. That day, I learned: One strong leg of the stool can’t compensate for the other two being weak.
The Right Preparation
Your homework happens before the negotiation. This includes:
Benchmarking competitor pricing
Checking if the supplier has a published discount schedule
Performing should/must/total cost analysis
Analyzing bargaining power
Considering alternatives and substitutes
Exploring design simplifications to reduce cost and TCO
Looking at dual or multi-sourcing models
When you do this, your positions will be backed by:
Confidence (visible to the other party)
Rationale (supported by data)
Key Takeaway
Make concessions only when they are:
Not preemptive
Data-driven
Preparation is your strongest asset in avoiding unnecessary giveaways.
Now go off and do something wonderful. Be your best!
— Omid G., “The Godfather of Negotiation Planning” – Intel Corp