Concessions

Oxcam
«To grant something in response to a
demand»

Oxcam
 Concessions
• Tells you about the Walk Away Point of TOP.
• Try not to be the first one to make a
concession.
• Try not to make two consecutive concessions.
• Give yourself enough room to make
concessions.
• Ask TOP for reciprocity .
• Watch out for the concession making pattern.

Oxcam
 Concessions
• Make unimportant concessions and portray them more
valuable than they are.
• Make TOP work hard for every concession.
• Use trade-offs to obtain something for every concession you
make.
• Generally, concede slowly and give little with each
concession.
• Do not concede ‘too often, too soon, or too much.’

Oxcam
 Concession making pattern
x

B1 B2 B3 S3 S2 S1

- WAPs
ZOPA
WAPb C1= 1 +

S2 = 9 S1 = 10
If S1, the initial offer of the seller is 10
and S2, his second offer is 9, then
C1 the first concession is C1= 10 - 9 = 1
The percentage of concession is 1/10 = 0.1 * 100 = 10%

Oxcam
 Concession Making Pattern

80 88 92 95 125 145 155 160

- Bc1 Bc2 Bc3 Sc3 Sc2 Sc1

+

Good Pattern Bad Pattern

Bc1 = 10% Sc1 = 3%
Bc2 = 6% Sc2 = 6%
Bc3 = 3% Sc3 = 13%

Oxcam