About PricingLearn More

Pricing is the process by which a business establishes the price of the products or services they sell. It means determining the product or service's real and perceived value and comparing that with its supply cost and competitors' prices. It is vital because it determines the profitability of the product or service. It also has a direct bearing on consumer acceptance and the future marketability of the product or service. The wrong price can trigger a series of events that can even lead to the failure of a company or organization. It affects the consumer perception of not just the product or service but also the organization behind it.

Numerous career positions benefit from a background in pricing. For example, a pricing consultant, whether part of a marketing team or freelance, offers comprehensive advice for pricing strategies. A pricing analyst collects and interprets data on market trends and values to set or adjust current pricing. A pricing specialist may perform the tasks of both the consultant and analyst or may collect and apply the data generated by consultants and analysts, enforcing the company’s pricing strategy. And a pricing manager oversees the overall strategy, coordinating the various departments involved, such as inventory and supplies, production, management, and sales. Even if your career does not directly involve pricing, a background in pricing can help you coordinate with those who are and promote effective communication.

What may first come to mind is math, basic accounting, and economics, and these are valuable skills since they make up the fundamentals of pricing. In addition, however, it would be good to have data analysis skills since much of the research that goes into pricing is data collection and analysis. Other valuable skill sets would be business management, leadership skills, and effective communication and negotiation. Pricing professionals often remain vital components in a marketing and management team, so these skills would make your resume more attractive and help to build your reputation. Subsets of these skills would include such additional abilities as networking and decision making.