Concessions are the compromises each side trades during a negotiation — price, payment terms, scope, implementation timeline. They are normal and expected, but the art is never giving one away free. Every concession should be exchanged for something in return: a longer term, a quicker close, a reference, a bigger scope. A discount handed over with nothing asked in return signals weakness and invites another ask.
In plain English
Think of concessions as chips you trade, not gifts you give. If the buyer asks for a lower price, your answer is "we can do that if you commit to three years" — not just "okay." The buyer expects you to push back a little; doing so keeps the deal fair and the price healthier.
Why it matters to you
How you concede decides whether the deal stays profitable and whether the buyer respects you. Concede slowly, in small steps, and always label what you are giving and what you get back. Reps who master this protect their walk-away price, avoid panicked counteroffers and anchor from value instead of fear.
For trading concessions without giving the store away, see Concessions and Your Walk-Away Price.