Collect statistical data to assist a company with sensible purchasing decisions.
What does a Pricing Analyst do?
A Pricing Analyst helps companies maximize profits by selling products and services for the highest possible price — knowing full well that if the price is too high, no one will buy, and if it’s too low, the company won’t make money.
In the 1920s, a gallon of milk cost 56 cents, a gallon of gas 10 cents, and an entire house less than $8,000. Today, a gallon of milk costs $2.65, a gallon of gas $3.69, and a house $166,100. If you find that fascinating, you should consider becoming a Pricing Analyst.
As a Pricing Analyst, you create competitive pricing models, which starts with researching pricing trends, then determining what other companies are charging for similar products and services, and what consumers are paying. At the same time, you must determine what it costs to make and/or offer your product or service. Based on your findings, you then make pricing recommendations.
Of course, setting prices is only the beginning. You also develop pricing strategies.
For instance, you might set a base price and “discount” price that will appeal to buyer psychology. Or, you might advise your company to introduce a new product in the winter instead of the summer based on research showing that people are willing to pay more during the holidays. You might even find that your company can’t charge what it needs to in order to make a profit, and therefore recommend that it use cheaper processes or materials.
Ultimately, perfect pricing is magic, which makes you a Magician: You make your company’s tricks work by guessing the lucky numbers.