What Is a Pricing Analyst?

Pricing professions offer a strong earning potential and ample career advancement opportunities. Businesses hire pricing analysts to research and analyze pricing trends to determine the best prices for products. It’s a position that requires excellent analytical skills and a solid background in business and finance.

Explore this career in further detail, including the pricing analyst skills you’ll need to develop and the average salary you can expect to determine if it’s the right job for you.

What is a pricing analyst?

Someone in this position analyzes costs and prices to find the optimum price for a business’s products and services, considering previous pricing strategies, competitor prices, and company overheads. It’s a technical role involving thorough research and analysis and the ability to communicate findings and make recommendations.

What does a pricing analyst do?

As a pricing analyst, you will price products and services based on in-depth research and analysis of the market, understanding historical pricing data, competitor pricing, and costs to the company. You’ll look at profit margins and ways to reduce production costs to remain competitive, which requires understanding consumer psychology. For example, pricing analysts understand product placement in relation to pricing and the psychology behind using $0.99 instead of rounding up. 

Pricing analysts work in various industries, including retail, manufacturing, pharmaceuticals, and IT. You’ll find positions in companies of all sizes, from small local businesses to midsize and large-scale corporations.  

Read more: What Is a Product Analyst? Skills, Salary, and Requirements

Tasks and responsibilities of a pricing analyst

The tasks and responsibilities of a pricing analyst vary according to the industry you work in and the products and services on sale. However, in general, a pricing analyst has the following duties:

• Analyzing pricing data to determine values for products and services

• Researching industry trends, pricing strategies, and competitor pricing

• Designing sales funnels 

• Developing strategies to increase profit and reduce costs

• Using sales and coupons to drive sales

• Implementing consumer psychology strategies on product placement and price points

• Communicating and reporting findings to the broader department and executive team

• Monitoring and adapting plans according to industry changes, competitor pricing, or trends

Pricing analyst skills

Pricing analysts have some solid technical skills for analysis and research but also need transferable workplace skills for communicating with team members and relaying complex information in a way that makes sense to the rest of the company. Examples include:

Pricing analyst salary and job outlook

According to the US Bureau of Labor Statistics (BLS), the average annual salary for a financial analyst is $96,220 [1]. Similarly, Glassdoor cites the average yearly pricing analyst base salary as $77,657, ranging from $59,000 to $89,000, and opportunities to earn more with commissions and bonuses [2]. In addition to solid earning potential, the job outlook for this role is also positive. The BLS predicts a growth rate of 8 percent for the decade through 2032, a rate faster than the average for all jobs and the equivalent of around 29,000 new jobs per year [1].

Some companies pay significantly higher than the average salary for an in-demand job like a pricing analyst. According to Indeed’s March 2024 data, these companies offer salaries well above the averages stated above [3]:

• SM&A: $208,899

• Lockheed Martin: $92,180

• Matematica: $84,853

• Northop Grumman: $89,053

• Uline: $82,872

How to become a pricing analyst

Some employers may require a bachelor’s degree; even if it’s not a prerequisite, earning your degree can help you gain the robust skill set and high level of knowledge you need to succeed. When starting out, experience is essential, and employers expect candidates to have four to six years of relevant professional experience before applying for a pricing analyst role. 

Many start in entry-level positions with the goal of gaining experience and working up. Consider roles such as finance analyst or a job in customer service or data research. Internships taken as part of your degree course are an excellent way to build hands-on experience to help you get an entry-level role following graduation. 

Education 

The minimum requirement for a pricing analyst is typically a bachelor’s degree with a relevant major such as business, data science, finance, economics, or accounting. According to Zippia, 75 percent of pricing analysts have a bachelor’s degree, with a further 13 percent studying for a master’s degree [4]. For higher-level roles and those responsible for pricing strategies for high-ticket items, employers may expect a master's degree. 

Certifications

Pursuing a relevant certification may be required by some employers and can offer an excellent demonstration of your skills and expertise. For a position such as pricing analyst, opting for a certification to show your skills and for further advancement might be helpful. The CFA Institute offers the Chartered Financial Analyst (CFA) certification, which is accessible after a bachelor’s degree, several years of experience, and passing a series of exams.

Other possible certifications to consider:

• Certified Pricing Professional (CPP)

• Certified Management Accountant (CMP)

• Project Management Professional (PMP)

Licensure

If the job you’re applying for is in the financial industry, you may need a license. The Financial Industry Regulatory Authority (FIRA) stipulates a license for some positions which require your employer sponsorship. Check if this applies to you, as your employer will need to sort this out when you start. 

Pricing analyst career path

If you decide working as a pricing analyst is for you, you’ll find a number of ways to progress as you build your career. Let’s take a look at some options and the associated salaries of each after you have built up experience as a pricing analyst:

• Senior pricing analyst: $99,139

• Senior finance analyst: $108,999

• Business analyst: $87,386

• Finance manager: $113,503

• Finance vice president: $172,006

• Senior data analyst: $111,756

• Portfolio manager: $128,144

• Fund manager: $118,882

• Pricing manager: $130,503

• Accounting analyst: $67,549

*All salary data sourced from Glassdoor, March 2024.

Getting started with Coursera 

Taking online courses can help you build your skills and explore your career options. If you already have a bachelor’s degree or you’re searching for direction, earning a Professional Certificate can help demonstrate your skills and build your resume. For example, you might consider checking out the Google Advanced Data Analytics Professional Certificate or the IBM Data Analyst Professional Certificate, both listed on Coursera and designed to help you expand your knowledge.