How to become a pricing analyst

Do you want to do work that can positively impact businesses and everyday consumers? Learn how pricing analysts can create value for people and organizations and find out the common steps to becoming one.

What does a pricing analyst do?

In a business setting, a pricing analyst sets prices for products and services. To ensure customers will perceive the offering as valuable without sacrificing market competitiveness, pricing analysts must learn to:

• Research consumer expectations and competitor prices
• Spot and analyze patterns, trends, and anomalies in datasets
• Track and monitor prices and sales data to understand market response
• Adjust product and service pricing to appeal to customers and increase sales
• Report findings and communicate strategies to senior leadership and cross-functional teams

Pricing analysis is often considered a branch of financial analysis. According to the Bureau of Labor Statistics (BLS), financial analysts earn a median annual salary of $99,890 as of May 2023. However, salaries may vary based on your role, employer, experience, and location.

Steps to become a pricing analyst

Here are three common steps to becoming a pricing analyst:

Step 1: Get your bachelor's degree

Because pricing analysts work with so much data, many employers like to hire candidates who have a bachelor's degree in a field that deals heavily with collecting and analyzing business data, such as:

• Business administration
• Information management
• Data science and analytics

Though a degree isn't necessarily required, these programs teach critical skills for pricing analysts, including statistical data mining and analysis, data visualization, and strategic information management.

Step 2: Obtain certification

Certifications are optional for those looking to learn how to become a pricing analyst. However, they can be helpful in proving your skills to employers. A few certifications you can consider include:

• Chartered Financial Analyst (CFA): Showcase your abilities in quantitative analysis, risk management, and valuation
• Certified Pricing Professional (CPP): Validate your expertise in market segmentation, pricing processes, and perceived value
• Certified Professional Sales Person (CPSP): Highlight your understanding of customers' needs and preferences and how to communicate value with pricing

Some experts believe pricing analysts should obtain a license from the Financial Industry Regulatory Authority (FINRA). However, this licensing generally refers to those involved in producing equity research reports.

Step 3: Secure entry-level experience

Like many business analyst positions, experience can be crucial in landing your desired role, because it shows that you can apply your theoretical expertise to practical, everyday situations. An internship or entry-level business analyst position can allow you to shadow an experienced pricing analyst and participate in real business projects.

If there's room in your current professional schedule, consider asking your manager to get involved in pricing-related tasks and projects. Not only can this show that you take the initiative, but it can also help you understand how to translate data and numbers into actionable insights.

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