Pricing analyst role

“What does a pricing analyst do? Shall I pursue a career in pricing?” You have asked yourself these questions. And I am going to provide you with the essential information so it helps you to decide whether to go for it or rather choose a different career path.

Pricing analysts are business professionals who specialize in the area of pricing, with the objective of determining the best prices for the company they work for. A good pricing analyst can make or break the future of a company.

Pricing analysts keep their eyes at the industry standards, paying detailed attention to the pricing strategies of their competition. They use mathematical analysis to track pricing trends and they also research consumer habits to determine how much are people willing to be charged for various products and services. They search for patterns in consumers spending. People may pay more for certain types of products during or before or after specific time of the year, like Christmas for example, which can be the major information for determining the prices and timing of product launches.

Pricing analysts are interested in the cost of production and operation of the items and services, the profit a company wants to achieve, and in what time, and all other associated costs like marketing promotion. They can be also concerned with packaging and presentation of the products that influences how much are people willing to pay so they work closely with marketing and research & development specialists.

Defining the right price can make a big impact on sales, even if the difference between prices under consideration is minimal. Pricing is thus very psychological which means that a pricing analyst should have an awareness of human psychology in addition to the understanding of the commercial world. Pricing analysts need to think about how people interact with prices and how other items in the same product line are priced.

These professionals often have degrees from business schools and some of their training is highly specialized. Many companies retain full time pricing analysts but it is not uncommon to hire the analyst as a consultant for a particular temporary project. Pricing analyst remuneration can vary, depending on their level of experience and professional certification and what industry and size of the company they work.

Many companies are in particular looking for people with experience in the industry in addition to a degree from business school that can make this field difficult to break into for candidates without relevant commercial skills proven by a few years of practice. People who are interested in this career may start out in other departments of a company, working their way gradually into the field of pricing analysis.

However, over the  last years I have spotted a rising trend in UK: the employers are hiring graduates to fulfill roles of a pricing analyst trainee / junior. The benefit for the employer is that they can train the fresh professional to fit to their way of doing things. The benefit for the graduates is that they receive a very thorough real-life training in the business and from the second, third year in their start-up role they usually move to a more senior pricing analyst role, either internally or being hired externally. Skilled pricing analysts with a practice in the industry are in a high demand.

 

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3 Comments to "Pricing analyst role"

  1. Ram says:

    Hi

    I am a fresh graduate and have a pricing analyst interview next week, part of the interview process is that they will put me straight in for a days work and see how I do.
    What preparation can I do to make sure I fit in straight away, is there specific excel skills or things I should be doing

    kind regards

  2. PricingAnalystUK says:

    hi Seher, statistic and economics is a perfect degree to enter pricing industry as a graduate.

    I recommend to set up a profile on LinkedIn already now and join some of the pricing professionals and job seekers groups there. These days the recruiters are using LinkedIn as their main tool to source the candidates so once you join some pricing groups, you might expect invitations to connect and these contacts can be useful in the future. Good to read the articles the pricing experts post. They are way more active than I am here on my blog! Feel free to connect also with me (Michaela Formanova) on LinkedIn.

    Also if you had a chance to do an internship while still on the uni, this would put you in an advantage against other graduates when you look for your first permanent pricing analyst job. Good luck!

  3. Seher says:

    Hi there,

    I am thinking on moving into this industry and been looking around for more information and helpful tip.
    I am in the very begining( actually in my final year doing BSc Statistics and economics) and need and advise as of where to start from. Can you help?

    Thanks,
    Seher

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