What is a pricing professional and what do they do?
Pricing professionals help businesses determine and set competitive prices to gain market share and achieve revenue goals. They contribute to strategies that take advantage of untapped market segments and help companies gain market share in new areas
Pricing analysts are required to be aware of industry trends and are well positioned to contribute to decisions about when a company should introduce new products and services. Pricing analysts consider data from multiple sources and develop complex pricing models. The analyst needs to consider information such as production costs, the competition’s strategy & pricing, consumer trends and marketing
Pricing managers are more senior than pricing analysts. They have responsibility for using the information provided by the analysts and setting pricing schemes for the company’s products and/or services. They translate data into actionable strategies to determine the correct market pricing, drive sales and enhance marketing efforts. This includes setting base prices as well as any discounts or promotions that may be offered to specific retail partners or as part of promotional campaigns.
Responsibilities will vary, but examples include:
- Use qualitative and quantitative methods to analyse competitor pricing on similar products and services, assess market share and margins and track customer engagement.
- Produce informed decisions about the appropriate price points for products.
- Communicate findings and pricing decisions verbally and in written form to senior management, and the sales and marketing teams.
- Evaluate consumer trends and use them to advise when new products should be rolled out to the market.
- Monitor the results of pricing decisions by evaluating performance in relation to budget and profit margins, revising pricing decisions if necessary.
- Develop pricing tools that allow the company to respond more quickly to changing market trends.
- Forecast margins to help the business understand the impact of promotional and seasonal pricing.
- Maintain knowledge and monitor industry trends and developments, taking action where necessary.
Why are they important?
Pricing professionals work with sales and marketing teams to develop strategies that drive sales and ensure that their companies remain competitive. They also play an important role in helping companies forecast revenue and market share information.
Skills needed for this role
Pricing professionals must have strong research and analytical skills, with a good eye for identifying opportunities. They should also possess excellent communication skills as they are required to translate complex data into meaningful information.
Strategic Professional Options examinations linked to this role
Career opportunities presented by this role
Pricing professionals work in a variety of fields including insurance, retail and business-to-business (B2B) sales. Depending on the company, pricing professionals may progress into roles such as management accounting and FP&A (financial planning and analysis).
High level competencies required include:
Audit and assurance
A. Advises on and communicates effectively the role and scope of audit and assurance engagements to relevant stakeholders.
B. Applies regulatory, legal, professional and ethical standards relating to audit and assurance engagements.
C. Plans and prepares for audit and assurance engagements.
D. Performs effective audit, and assurance engagements.
E. Reviews and reports on the findings of audit and assurance engagements.
F. Guiding efficient and effective operations.
Data, digital and technology
A. Identifies strategic options to add value, using data and technology.
B. Analyses and evaluates data using appropriate technologies and tools.
C. Applies technologies to visualise data clearly and effectively.
D. Applies scepticism and ethical judgement to the use of data and data technology.
A. Links developments in global trade, markets, business practices and the economic environment to required improvements in the financial and risk management of an organisation.
B. Advises on business asset valuations, capital projects and investments using appropriate analytical qualitative and quantitative techniques.
C. Identifies, evaluates and advises on alternative sources of business finance and different ways of raising finance.
D. Communicates and advises on the impact on financial decision making on current developments in regulation, governance and ethics.
E. Assesses and advises on appropriate strategies to manage business and organisational performance regarding business and finance risk and effectively communicates the impact.
A. Applies development and performance management, in the wider business and technological environment, within the context of strategic planning and implementation.
B. Directs organisational performance through the selection and measurement of financial and non-financial performance indicators.
C. Collaborates on the key tactical and organisational areas of budgeting and control, capital investments, people and resource management.
D. Consults on the design and use of current and emerging technology and information systems to improve strategic decision-making and organisational performance.
Strategy and innovation
A. Applies business acumen and commercial awareness to deliver business objectives.
B. Recommends a range of suitable strategic options from which to develop sustainable plans and objectives.
C. Evaluates, justifies and implements suitable strategic options.
D. Adopts and applies innovative methods to implement strategy and manages change.
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