How to become A Pricing Analyst

Pricing Analysts have an immensely challenging and constantly exciting role to play in making sure a product or service is priced right - it encourages the customer to buy while promoting the growth of the business.

• Cost Pricing Analyst

What do Pricing Analysts do?

A Pricing Analyst would typically:

• Use complex data to examine industry standards and pricing strategies of competitors to help businesses determine and set competitive prices
• Use comprehensive research, mathematical analyses and impact analyses to assess market share and margin and track customer engagement
• Study consumer behaviour and habits to gauge their willingness to pay (WTP) and identify patterns in their spending
• Conduct competitor analysis on related products and services to identify effective pricing structures and strategies as well as sales funnels
• Explore viable opportunities in new avenues based on their study of market trends, the state of the industry and untapped market segments
• Collaborate with the sales and marketing departments to design and execute competitive pricing strategies that improve sales volume or profitability
• Analyse data connected to return on investment (ROI) for prevailing marketing and promotional programs
• Review customer response to marketing efforts and arrive at superior ways to engage the customer and boost the company’s market share
• Develop tools such as dynamic pricing that will allow the company to quickly adjust prices and stimulate sales volume and conversion rates
• Design instruments to streamline analysis and provide exact data about competitor prices and promotions 
• Make use of various statistical modelling methods to help their client forecast revenue and market share
• Prepare and present reports and visual presentations that reflect the potential impact of varied pricing strategies, evaluate the findings and recommend appropriate action plans to key decision-makers
• Address any other issues and concerns raised by team members that concern pricing
• Develop pricing tools like dynamic pricing that are utilised by the whole company, so that they can quickly respond to the changing market trends.

Pricing Analysts work at a desk and computer for the better part of the day, except when they need to attend meetings or make presentations. They work closely with the sales and marketing teams.

Pricing Analysts have a standard business schedule that may occasionally extend beyond the usual 40 hours/week. 

Finding a new job might seem challenging. Although the fields where they can get a job are numerous, Pricing Analysts can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

Pricing Analysts are generally employed by:

• The Construction Industry
• The Agriculture Sector
• Private Healthcare Facilities
• Food & Beverage Manufacturers
• Banking & Other Financial Institutions
• Colleges & Universities
• Transport & Logistic Companies
• Pharmaceutical Companies
• Professional Service Firms & Offices

Professional associations and organisations, such as the Pricing Society, are crucial for Pricing Analysts interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Availability of data - data collection and management
• Reliability of available data - data integrity
• Outsider’s view of pricing as a niche speciality lacking the status of finance or operations
• The absence of professional opportunities found in other fields

Few, if any, on-the-job training opportunities make it necessary for aspiring Pricing Analysts to acquire the requisite specialist knowledge and expertise through a relevant internship or prior working experience in competitor pricing and sales, financial management and forecasting.

Internships will help you gain optimal benefit from your tasks outside of the classroom when they line up perfectly with your lessons inside it. You may get to hear countless stories from more experienced professionals and obtain valuable hands-on experience when they manage to turn seemingly routine incidents into unique learning moments.

Read about the profession and interview/shadow experts working in pricing analysis to prove your commitment to course providers and prospective employers.

A bachelor’s degree in mathematics, business administration, finance, marketing, accounting or statistics will facilitate entry into this career. However, employers are showing a decided preference for candidates with an MBA or a postgraduate technical degree which adds appreciable value to client interactions and data analysis.

Focus on mathematics, business studies, accounting, statistics and English in high school.

Certification in business intelligence software, database management, back-office and billing systems, Microsoft Office and Python from an objective and reputed organisation can help you stand out in a competitive job market, increase your chances of advancement, and allow you to become an independent consultant.

Successful certification programs protect public welfare by incorporating a Code of Ethics. A combination of education, experience, and testing is generally required to gain certification, though requirements differ from region to region.

Performance, experience, and the acquisition of professional qualifications drive the career progression of Pricing Analysts who move to managerial or financial account management and analysis roles. Eventually, they may take on executive management roles that may lead to the C-suite, as a Chief Pricing Officer (CPO).

It is also possible to become an Actuary just as it is to enter other fields such as marketing, consulting and finance.

Candidates with an MBA, certification in business intelligence software and experience in financial management and forecasting have the best job prospects.

Continuing professional development (CPD) will help an active Pricing Analyst build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning. CPD also allows the regular renewal of requisite certifications.

Pursuit of an MBA or a postgraduate technical degree will help your career advancement. You will need to undertake a series of exams after completing your undergraduate degree and acquiring sufficient knowledge to become an accredited Actuary.

Priceless Traits

A few qualities that Pricing Analysts would find invaluable to performing their duties include a keen eye for opportunity, attention to detail, creative- and analytical thinking skills, research and problem-solving skills and a customer-centric approach. 

Of equal importance would be a readiness to learn, humility, patience, team collaboration, numeracy, financial forecasting, as well as communication, negotiation and presentation skills.

Tools Of The Trade

Pricing Analysts use mathematical analysis, impact analysis, and statistical analysis to execute their responsibilities.

Mathematical analysis uses industry databases to track pricing trends in the market. The analyst uses relative preference to understand market insights and tastes better. It helps them integrate their own recommendations with a client’s internal dataset and offer context-specific pricing strategies.

Impact Analysis is vital to preventing and recovering from any change or disruption to the business. Pricing Analysts use impact analysis to integrate the client’s historical data with their own recommendations on price points, value metrics and feature packaging and to study the impact on business performance.

Statistical Analysis helps Pricing Analysts to thoroughly examine tons of internal and external data before offering their perspective about general trends within the industry

No Action Without Research

Research is second nature to Pricing Analysts who depend on it to acquire new knowledge and find new data. It also helps enhance current research and SKU (stock-keeping unit) rationalisation - offering the optimal variety of products.

Potential Pros & Cons of Freelancing vs Full-Time Employment

Freelancing Pricing Analysts have more flexible work schedules and locations. They have full ownership of the business and select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.

On the other hand, a full-time Pricing Analyst has company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.

86% of consumers say it's important to compare prices from different sellers.

Pricing is a critical and often-neglected component to maximising a company’s revenue. Savvy business owners know that an intelligent Pricing Analyst will counteract expensive mistakes in pricing, which will eat into their hard-earned reputation and profits.

“It is a career just made for those with an analytical mind, business acumen, excellent communication skills and a passion for numbers.”

Moira McCormick