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I am Profit improvement oriented leader, focused on design and execution of Pricing &…
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Wojciech Gorzeń replied to a comment
1mo
Great question.
I would say negotiation should defend pricing decisions, but it should not compensate for poor pricing decisions.
If pricing defines:
- value to be captured
- target price
- negotiation boundaries
- and walk-away rules
then negotiation becomes the mechanism that protects and realizes that value in the market.
However, when pricing is weak or unclear, negotiation is often forced to do a different job - determine the price itself.
That's where problems begin.
In mature organizations, pricing and negotiation are complementary:
Pricing answers: "What should we charge and why?"
Negotiation answers: "How do we capture that value in a specific customer situation?"
So, yes — negotiation should absolutely help defend pricing.
But if negotiation becomes the primary defence against weak pricing logic, unclear value propositions, or poor segmentation, the organization is asking negotiators to solve a pricing problem.
And that's usually an expensive way to manage margins.
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