A pricing manager determines pricing schemes for products and services by coordinating with production and marketing departments. They evaluate new products and consider production costs, industry rates, and promotional campaigns. A bachelor’s degree in marketing or business is helpful, and some companies prefer an MBA.
A pricing manager determines the pricing schemes for a company’s products and services. This includes coordinating with the production departments to find out how much they cost, as well as working with the marketing team on appropriate campaigns and promotions. Requirements for working in this field can depend on an employer, but a bachelor’s degree in marketing, business or related subjects can be very helpful. Some companies prefer job seekers with an MBA.
As companies prepare to launch new products and services, the pricing manager evaluates them to define pricing policies. This includes the base price and any discounts that can be extended to specific partners and resellers. For example, wireless phone companies often offer discounts on their devices when purchased with a phone plan. The pricing manager needs to decide on appropriate pricing for the plans, as well as the level of discount to offer on individual phones to attract customers.
Pricing managers consider production costs, including not only actual manufacturing but also marketing, shipping, handling, and related expenses. They want to ensure that prices help the company break even and make an optimal profit, unless a product is specifically designated as a loss leader. These products are sold at a loss in order to generate more profits by attracting customers, encouraging people to buy accessories or building loyalty to a specific brand.
It also requires thinking about the prevailing rates for similar products in the industry to remain competitive. Two car companies that offer similar vehicles shouldn’t be priced too differently, because customers might preferentially buy the cheaper car, for example. The pricing manager can also think about what kind of message the company wants to project with pricing and how the marketing department will handle promotional campaigns. Small price adjustments can be important for marketers; for example, setting the cost at 19.99 instead of 20.99 might look very different to customers.
Job requirements may include attending conferences, product launches and other events. A pricing manager needs to keep up with the competition, which may involve some field research; for example, someone dealing with prices in a supermarket might visit a rival store in the area to check prices. Marketing and public relations skills are also important, as is familiarity with the industry as a whole and an employer’s specific line of products and services.
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