Preemptive Negotiation Concessions: The Fatal Flaw That Costs You Deals—and Profits
Guest article by Omid G
In the world of negotiation—whether you’re in procurement or sales—there’s one recurring misstep that continues to cost professionals dearly: offering concessions too early.
Both buyers and sellers often try to preemptively "sweeten the deal" in hopes of securing a faster close. Sellers throw in discounts upfront. Buyers signal flexibility before it's needed. But here’s the hard truth:
Never offer concessions unless the other party explicitly asks for them.
Let me share two real-life examples that underscore this point:
Case 1: The Pool Light Discount That No One Asked For
Last week, I needed to replace an underwater light in my swimming pool. My pool cleaner quoted a fair price—market value, in fact. I intended to move forward but got caught up with other commitments and hadn’t responded yet.
Two days later, he followed up with this message:
“Just realized that my regular customers get a special deal on this. If you book now, I’ll give you 30% off.”
I hadn’t negotiated. I hadn’t even responded. Yet, he preemptively gave away 30% of his margin. His cost hadn’t changed—just his profit. I saved money without lifting a finger. He lost money unnecessarily.
Case 2: The Nervous Home Inspector
Two weeks earlier, I was evaluating home inspectors. One individual was explaining his services over the phone while I simply listened without reacting. The silence made him uneasy. And right there, mid-conversation, he cut his price in half—without me even asking.
His panic discount didn’t build trust—it did the opposite. I instantly questioned his credibility. Why is he so desperate? I ended up hiring someone else.
What Went Wrong?
In both cases, the concessions weren’t earned—they were reactions to perceived silence and uncertainty.
The underlying issues?
Fear of losing the deal
Lack of confidence in pricing
Mistaking silence for rejection
Silence, in fact, can be one of your strongest tools in a negotiation. It creates discomfort. It makes the other party second-guess themselves. When used strategically, it gives you leverage.
But if you’re the one feeling uncomfortable in the silence, you’ve already lost the edge.
Here’s the Lesson: Sell Value, Not Price
If you know your offer is competitive, don’t default to lowering your price. Instead, focus on highlighting your differentiators—your better service, your reliability, your expertise.
It’s not about cutting your price. It’s about building negotiation assets through non-financial means.
That’s true whether you’re selling a product, offering a service, or sitting across from a procurement officer.
Final Thought
The party that needs the deal more is often the one who folds first. Don’t let that be you. Instead, embrace the power of silence, ask smart questions, and let the other side make the first move.
Because in negotiation, patience isn’t just a virtue—it’s a weapon.
Now go out there and close with confidence.
Be your best,
Omid G.
#procurement #negotiation #salesstrategy #purchasing #valueoverprice