What does a Pricing Analyst do?
Every business regardless of which industry it is and whether its goods or services, needs to set a pricing point. A pricing analyst studies the market to help businesses determine and set competitive prices. The role of a pricing analyst is very analytical and requires you to work with complex data to examine the competitors’ pricing strategies, industry standards, and consumer habits to develop pricing models and sales strategies. You have to be analytical not to set the price too low or too high because the former will mean not enough profits and the latter will mean the business losing its customer base.
What skills do you need to become a Pricing Analyst?
A pricing analyst role is a very demanding role when it comes to data analytical skills and interpersonal skills. A pricing analyst typically has at least a bachelor’s degree in mathematics, statistics, or economics with a background in marketing, finance, or business administration. The following are some of the skills you will require to nail your role as a pricing analyst:
- Mathematical analysis skills:As a pricing analyst, you will require excellent mathematical skills to be able to analyze data sources and come up with pricing models and strategies.
- Market research skills: You must be really good at researching because your role as a pricing analyst is primarily focused on research. You will statistically analyze internal and external data and generate insights on pricing trends.
- Financial forecasting: You will be required to develop a wide range of forecasts and models to assist in the pricing decision-making process.
- Customer service skills: A pricing analyst knows how to develop and maintain relationships with suppliers in order to provide excellent services to customers.
- Effective communications skills: You will be required to have both strong verbal and written communication skills. You should be able to communicate with the sales team, company executives, industry experts, and suppliers.
- Software skills: A pricing analyst MUST at least have experience with back-office and billing systems, database management, and Microsoft Office programs.
What are the responsibilities of a Pricing Analyst?
- Assessing data from multiple sources to have insights into current pricing strategies and market trends
- Analyzing competitor pricing strategies and market trends to increase profitability
- Evaluating customer habits and trends to develop effective pricing strategies
- Monitoring the results of pricing decisions by evaluating performance
- Applying statistical modeling methods to determine the possible impact of pricing strategies on profitability
- Recommending pricing strategies that align closely with the market trends
- Working closely with sales and marketing teams to develop and implement competitive pricing strategies
- Communicating pricing decisions to the company’s management and stakeholders
- Stay on the know of things pricing analysis strategies and industry trends
A day in the life of a Pricing Analyst
The role of a pricing analyst differs according to the industry they’re in- goods or services industries. In general, you will start your day by being strategic with an approach to research and analytics. You will then come up with building elasticity models to measure your products/ services price sensitivity according to real-time sales results. You will then be responsible for performing market research and statistical analysis like competitive benchmarking and consumer research.
At this point, you’re able to synthesis internal and external results through written and verbal communication to present to senior business leaders, so they make the needed decisions. You will continue to engage other stakeholders during the day and being responsible for your learning and personal development.
Career prospects and job outlook for a Pricing Analyst
According to the Bureau of Labor Statistics, the demand for pricing analysts was expected to rise by 11% between the years 2016-2026, which is faster than the average for all jobs. An increase in many different products in the market and technological advancement are two of the largest contributors to jobs rise in the field. The following is the endless list of industries that employs pricing analysts:
- Commercial and industrial goods manufacturers and distributors
- Construction companies
- Agricultural companies
- Food and beverage companies
- Private health care facilities
- Higher learning institutions
- Financial institutions
- Pharmaceutical companies
- Transport and logistics companies
- Professional service and IT firms
Top 5 Pricing Analyst books you MUST read!
The Strategy and Tactics of Pricing: This book provides you with a solid overview of the different pricing strategies that exist and how they apply in the 21st century. It also provides some technical discussions like how and when to use financial analysis, the effect of the cost structure, and the importance of pricing policies.
Value-Based Pricing: This book will teach you how to set a selling distribution channel, how to understand your customers and their needs, how to utilize revenue generation while reducing cost for the business, and how to differentiate your business.
Brilliant Selling: This book is full of practical tips and advice from successful business professionals. It is especially good for those new to selling as a coaching book or a reference book for those with experience.
Pricing for Profit: This book is very readable, a practical guide, and uses real-life examples to explain to you how to stay strong under the pressure of discounting to undercut the competitors. The strategies in this book when implemented should make a huge difference to your bottom line and deliver strong business growth.
Pricing with Confidence: The main purpose of this book is to teach you how to be more confident in your product and value for both price setting purposes and price capturing purposes. It dispels the idea of selling your product’s price and instead starts selling the value of the product. It provides you with several real-world examples to support the authors’ suggestions and claims.
5 Best online platforms for Pricing Analyst courses
Price Analytics: https://www.udemy.com/share/101LbG/
Pricing Strategy: https://www.coursera.org/learn/pricing-strategy
Pricing Strategy Optimization Specialization: https://www.coursera.org/specializations/uva-darden-bcg-pricing-strategy
Marketing Analytics: Pricing Strategies and Price Analytics: https://www.udemy.com/share/101vKW/
Data Analytics for Pricing Analysts in Excel: https://www.linkedin.com/learning/data-analytics-for-pricing-analysts-in-excel
Marketing Analytics: Pricing Strategies and Price Analytics: https://skl.sh/2PZKojI
If you’re interested in a fast-paced working environment where you get to enjoy doing math and statistical analysis, then a career as a pricing analyst might be the way to go. The industry is fast expanding with the rise in products and services increasing globally making your chances of securing a well-paying job as a pricing analyst very wide. You will need to get a bachelor’s degree and possibly a master’s degree in the field-related subjects and gain experience through volunteering and internships. This is an ever-changing industry that will require you to stay up to date with industry trends and strategies to keep up and succeed.
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