A concession is not a peace offering. In a live B2B deal, every give has a dollar cost and a signal attached to it. Concede when the move means much more to them than it costs you, and if you cannot name both sides of that gap, you are relieving pressure rather than trading.
Run the cost test before you move
Before you adjust price, terms, or service, write down two numbers. What does this concession cost your profit and loss in profit dollars? What is it worth to the person across the table, in their dollars, not yours? A freight allowance that barely moves your margin can clear a buyer’s quarterly logistics target. A price cut that looks small on a unit basis can wipe out the profit on the volume you already have.
If the gap is wide in their favor and narrow on your side, the trade can be rational. If the gap is thin, or you cannot estimate it, hold the position and ask what problem the concession is supposed to solve.
Make the give smaller, and make it earned
Pattern matters as much as size. A first move of two points, then four, then six, tells the other side that pressure still works. A tighter sequence, two points, then a half point, then a smaller step, signals that the room left is limited. They read the pattern even when you do not announce it.
Do not hand the move over for free. Tie it to something you need: a defect rate fix, a volume commitment, a cleaner forecast. On a large ask, pair the concession with a secondary ask in return. You are not required to match their request one for one. You are required to know what you are buying with the give.
Label the stretch
When you do move, say what it costs. “I can adjust the price, and I want to flag that this is a real stretch on margin.” A label raises the perceived value of the same concession. It also keeps the conversation on the trade, not on who blinked.
Takeaway: Before the next concession, name what it costs you and what it is worth to them, then shrink the move and attach a return ask.
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