EXTERNAL CHARACTERISTICS: The balance of power is much more equal during Concession Trading.  The complexity of the deal shifts the focus away from just price.  These types of deals require ongoing support through execution and delivery phases, thus creating transactional dependence.  Value, profitability, competitive advantage, and price tend to shape the terms as well as the length of these deals.  There may be few alternatives or substitutes.  Typical negotiations include supplier agreements, business customers and accounts, normal commercial transactions, etc.

BEHAVIORAL ELEMENTS: Concession Trading requires trust as relationship starts to play a role in shaping the transaction.  Continue reading →