Pricing Strategy
Determining the optimal pricing for products or services based on costs, value perception, market conditions, competition, and business objectives.
Proficiency Level
Level 1 (Follow)
- Accurately uses established price lists and standard discount structures when generating quotes or processing orders.
- Follows procedures for escalating requests for non-standard pricing or discounts.
- Understands the basic pricing structure for the products/services they handle.
Level 2 (Assist)
- Assists pricing analysts by gathering data on competitor pricing, production/service delivery costs, or sales transaction history.
- Helps prepare reports comparing internal pricing against market benchmarks or analysing basic pricing scenarios (e.g., volume discounts).
- Maintains pricing documentation or databases under supervision.
Level 3 (Apply)
- Analyses pricing data, cost information, and market conditions for specific products, services, or customer segments.
- Contributes recommendations for setting or adjusting prices based on established pricing models, guidelines, and analysis.
- Monitors the impact of pricing changes on sales volume and revenue for assigned areas.
Level 4 (Ensure)
- Develops and implements specific pricing strategies and models (e.g., value-based, cost-plus, tiered pricing) for product lines or business units.
- Conducts thorough profitability analysis, competitive pricing analysis, and price elasticity studies.
- Manages the process for setting prices, approving exceptions, and communicating pricing structures effectively.
Level 5 (Strategise)
- Develops the organisation's overarching pricing strategy, framework, policies, and governance process.
- Aligns pricing strategy with overall business strategy, brand positioning, market segmentation, and financial objectives.
- Makes strategic decisions on complex pricing structures (e.g., subscription models, dynamic pricing) and oversees their implementation.