Concessions 'key' to business negotiations

Concessions can lead to a long-term business relationship

Companies should agree to make concessions during business negotiations, according to an expert.

Many negotiators may aim to make minimal concessions when negotiating a contract but this can have negative effects on the long tern relationship between two firms.

Charles Newman, a former Ford executive, expressed his belief that a successful negotiation should result in each party making and gaining some concessions.

He wrote on ezinearticles.com: "In other words, at the end of the day, both parties should feel as though they may have given up some things, but they also have gained some concessions in return.

"Only then will you have the foundation for a long-term successful relationship that benefits all involved parties."

Mr Newman added that a deal in which a negotiator made no compromises may appear to be good in the short-term but warned the deal will often turn sour.

The other side may wish to negotiate a better arrangement in the future or they will simply end the partnership.