A pricing analyst is a person who analyzes and assesses the prices of goods or services to determine how best to set their price. That includes looking at trends, competitors’ prices, demand for the product or service, and other factors. The pricing analyst also considers what costs may be involved to help influence decisions about which products should be produced and what types of materials should be used in production. They will sometimes create new pricing models for different markets with different needs. They have a lot of responsibility because by making these assessments, they are helping to shape how companies go forward with their business plans.
This blog post will provide you with information on this career path, including education requirements, salary potentials, and areas of need.
1. What Is a Pricing Analyst?
A pricing analyst is an individual who evaluates the prices of products and services. They determine what the best pricing strategy may be based on factors such as production costs, operational expenses, past figures in demand for their product or service, trends in competitive pricing, market conditions, legal statutes in place that affect how they can price their goods or services, economic status of the consumer, and other factors.
They must recognize which market they are selling their goods or services to set appropriate price points. They may create new pricing strategies for different markets with different needs. The pricing analyst also works closely with product managers to make sure they understand any additional costs due to materials and manufacturing processes so that the final price of the product or service doesn’t exceed the projected income.
2. Responsibilities of a Pricing Analyst
The responsibilities of a pricing analyst include:
- coming up with new pricing models for different markets and demographics
- studying trends in the marketplace to determine optimal pricing strategies
- analyzing competitors’ prices as well as their own company’s prices
- assessing potential risks involved with setting specific price points, such as legal issues or changes in the marketplace
- deciding whether a new pricing strategy is required or if an existing one should be changed or maintained
- making recommendations to management about product prices and packaging options
- providing advice on the best production techniques that will cut costs without affecting the quality
- creating appropriate financial forecasts for proposed products
3. Education Requirements for a Pricing Analyst
Pricing analysts typically have a bachelor’s degree in business, marketing, economics, finance, or statistics. They may also major in mathematics or another quantitative field like engineering or computer science.
- Bachelor of Business Administration (BBA)
- Economics (BSE)
- Finance (BSF)
- Marketing (BAQ)
- Statistics (BSST)
- Mathematics (BAHM)
Graduate degree programs offer more specialization in the field. They include
- MBA with a focus on finance, marketing, or economics
- Master of Business Administration (MBA) with a focus on finance or statistics
- Doctorate of Business Administration (DBA), which is a research-focused degree
- Master of Science in Statistics (MS), which provides specific knowledge about statistical methods and their applications
- Master of Science in Economics (MSE)
- MBA with a data science specialization
Pricing analysts typically need a bachelor’s degree in quantitative fields or business. However, candidates who have graduate degrees, such as a master’s degree or Ph.D., will be given preference over those who only hold bachelor‘s degrees.
4. Skills Needed to Become a Pricing Analyst
To become a pricing analyst, one should have strong analytical abilities and sound judgment skills. They must be able to view the market from a diverse perspective. They must also pay close attention to detail and work with numbers accurately. They must be familiar with Microsoft Excel to do their job effectively.
Candidates should work in an environment with tight deadlines and high stress. They also need excellent oral and written communication skills to effectively communicate with clients, customers, and their team members.
5. Salary for a Pricing Analyst
According to PayScale, the average salary range for a pricing analyst is from $53,861 – $111,224. According to Inc., however, the highest salaries are earned by those who hold a doctorate and work in research-oriented companies. For example, a pricing analyst with a Ph.D. who works for Exxon Mobil earns $113,000. By comparison, pricing analysts who work for small government agencies earn an average of $71,350.
The salary potential of a pricing analyst is based on experience, education level, and geographical location. An individual with more than five years of work experience under his belt will usually make an annual income of $80k-$150k+. A bachelor’s degree holder with less than three years of work experience can expect to bring in between $50k-$80k.
6. Perks of Being a Pricing Analyst
The job requires constant learning to keep up with changing trends in the marketplace. Being a pricing analyst can be both stimulating and financially rewarding, especially for an individual who enjoys the industry’s business side. Many pricing analysts earn annual bonuses and stock options.
It is also a job that does not require working under anyone, which can be especially appealing to those who do not enjoy having a boss hovering over their shoulders. Another perk of the job is the ability to move up in one’s company or industry, whether it means becoming a manager, taking on a different role in the same company, or working for another business.
7. The Job Outlook for a Pricing Analyst
According to the Bureau of Labor Statistics, job prospects for a pricing analyst should be strong from 2012-to 2022. This is partly due to a need for businesses and organizations to understand better their place in the market and how they can remain competitive by adjusting prices accordingly. Another factor contributing to a strong job market for this type of position is the increase in the amount of data available, which requires specialists who know how to use it.
8. Pricing Analyst Jobs
- Pricing Analyst at Bo oz Allen Hamilton in McLean, VA
- Pricing Analyst at Parsimonious & Partners in New York, NY
- Pricing Analyst at Devan in Seattle, WA
- Pricing Analyst at JDA Software Group, Inc. in Clear water, FL
- Pricing Analyst Job at Bridges tone Retail Operations, LLC in Nashville, TN
- Pricing Management at the Outback Steakhouse Franchisee Co in Tampa, FL
- Pricing Analyst at Fifth Third Bancorp in Cincinnati, OH
- Pricing Analyst at ADP, LLC in Ros eland, NJ
- Pricing Analyst at World Markets in New York, NY
- P/R/C Specialist – Pricing Services at United Airlines in Chicago, IL
9. Challenges Faced By a Pricing Analyst
Within any career, there are always challenges to be faced. For a pricing analyst, the following are among the most common:
1. Keeping up With Changes in Market Trends
The job of a pricing analyst requires constant learning. Keeping up with emerging markets and what they mean for an individual company’s bottom line can be both time-consuming and exhausting. To do this, a pricing analyst might have to use advanced technology to gather accurate data from all market points.
In addition, it is often necessary for a pricing analyst to be an expert on how businesses operate within their industry. The individual must know what makes a particular business unique and differentiate itself from the competition.
To stay up-to-date with changes in market trends, a pricing analyst is often required to attend educational seminars and conferences on topics related to their field. This does not happen overnight; it requires a substantial investment of time and effort. A successful pricing analyst must adapt quickly when new information is presented.
2. Pressure From Internal and External Sources
Because most large companies focus on maximizing their revenue, both internal and external pressure can challenge a pricing analyst. Many members of upper management may assume that a certain price point will generate a specific level of sales without having any complex data to back them up. In this scenario, a pricing analyst must explain why increasing the price of a product will result in fewer sales without risking their job.
On the other hand, an individual responsible for pricing might wish to raise prices because they feel it will generate more revenue. In this case, a pricing analyst must be able to provide not only complex data that shows why increasing prices might not be beneficial but also present alternative solutions to ensure the overall success of the business.
3. Lack of Job Security
When individuals become a pricing analysts, they may not know how long they will be employed. If they lose their job, the vast majority of the time, this happens without any form of advanced notice, and there is no guarantee that it can easily be found another position relating to their area of expertise.
10. Best Colleges to Study Pricing Analysis
Traditionally, an individual might have studied economics or business administration to get a job as a pricing analyst. However, with the emergence of new technologies and programs for data analysis, it is possible to get the education needed from several different types of institutions.
While many universities offer advanced degrees in economics or finance that can be beneficial, several other options might be just as good. For example, some of the best schools to study pricing analysis may include:
- Master’s in Pricing Management at Northwestern University
- Registered Public Health Pricing Analyst at University of Florida
- Board of Certified Medical Pricing Professionals at University of Florida
- Pricing Analyst Training Program at University of Florida
- Graduate Certificate in Healthcare Financial Management at Loyola University
- Master’s of Public Health in Public Health Practice with a concentration in Pricing and Reimbursement Strategy at George Washington University
- Healthcare Informatics Graduate Certificate Program at Duke University, Fuqua School of Business
The pricing analyst career path is an interesting and lucrative one. It’s perfect for someone with strong math skills, a detail-oriented mindset, and an interest in the business. The job outlook looks good, too, with the Bureau of Labor Statistics predicting that jobs in this field will grow by 6% from 2016 to 2026. If you’re interested in becoming a pricing analyst, now is a great time to pursue this career. With the proper education and experience, you could be on your way to a successful future in this growing industry.