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1. S
CHAPTER 4 – CURRENCIES AND
CONCESSIONS

2. CURRENCIES
S Currencies: Tangible or intangible resources
that are perceived to have value by the receiving
party.

3. CURRENCIES
Types of Currencies:
S Prime currency:
usually money

4. CURRENCIES
Types of Currencies:
S Alternative currencies: Things that one party
has that might meet the needs of the other
party
S Elegant currencies: Things that are of high
value to the receiver but that are low cost to
the provider

5. Categories of Currencies in
Negotiation
S Financial
S People
S Information
S Recognition and
rewards
S Facilities & Equipment
S Priorities
S Proprietary agreements
S Mitigation of risk

6. Questions to Identify Currencies in
Negotiation
1. What are the elements of value in the deal,
both tangible and intangible?
2. What can I give them that they need?
3. What can they give me that I need?

7. Concessions
S Concessions: giving any or all of a currency
S How, when, and on what we make
concessions

8. Key Considerations in making
concessions
S What will the other party infer from my concession?
S When should I make a concession?
S How much of a concession should I make?
S What is the cost/value ratio of the concession?
S What can I receive for making the concession?

9. Strategies for making concessions
S Always get something in return – Use “If…,
then…”
S Look for elegant concessions (low cost/high
value)
S Agonize when appropriate
S Tie your concession to the other party’s need