Pricing analysts study pricing to determine the best target price for their business. While many businesses hire a full-time pricing analyst, some are hired as consultants to work on a single project or for a short amount of time.
Pricing analysts are expected to determine the best price point of a service or product for their business. They examine the competition and industry standards, identifying any specific strategies that the competition is using. They may graph data indicating pricing trends over time, which help determine if a company can charge more at a specific time of year or during a certain season. This information can also help the company identify the best time to roll out a new product or concept.
While tracking consumer habits is an important aspect of the pricing analyst’s job, they must also observe the internal costs of a product or service. They must take note of the cost it takes to develop, make, and package a product, as well as marketing costs. The quality of a product or service may also increase the price that a consumer is willing to pay.
Pricing analysts typically hold at least a bachelor's degree in business or a related field. Pricing analysis is a specialized field, so people generally do not enter in an entry-level position; pricing analysts are usually employees who have been with a company for many years and receive targeted training to help them work as effectively as possible.
Pricing Analyst Tasks
- Work with cross functional teams to define floor, target and ceiling pricing for project job components.
- Scope the issue then define, build and implement solution to measure price effectively.
- Identify, scope and execute strategic price process improvement projects.
- Proactively communicate metrics and project objectives, status, barriers and results to all levels of the organization.