With improved stability in today’s global market, many qualified accountants are moving into the product control and pricing realm to play a more prominent role in raising revenue. Pricing managers use complex statistical models to appropriately measure how profitable certain products may be at certain price points. Product control and pricing managers typically work in an organization’s marketing or sales department to determine how much products can be sold for to a targeted audience. Managers will use their accounting expertise to place realistic costs that generate the greatest possible profit margins. Product control and pricing is all about evaluating new products being created in the production department to set pricing policies. Certain managers may also work with retail partners to make suggestions on pricing discounts.
Salary
Based on employment statistics compiled on Salary.com, the median yearly salary for product control and pricing managers working in America is $94,146. This could be equated to earning $45 per hour or $1,811 each week on average. Along with this base salary, pricing managers are given bonuses, social security, pensions, and healthcare coverage for a total average compensation of $133,626 annually.
Beginning Salary
When just starting out in product control and pricing, you’ll likely land in the bottom tenth percentile of earnings with a yearly income around $64,323. However, it’s important to remember that pricing managers with years of experience in large corporations often report bringing home sizable six-figure base salaries over $130,826 each year.
Key Responsibilities
Product control and pricing managers hold significant responsibility in helping their organization build brand loyalty among customers with good products at appealing prices. Pricing managers analyze all manufacturing, marketing, shipping, handling, and design costs to ensure companies aren’t losing money in sales. Typical daily duties could include analyzing profit margins, monitoring commercial price lists, validating sales quotations, documenting comparative pricing data, identifying strategies to optimize sales, preparing pricing models, and tracking marketplace metrics. Businesses hire product control and pricing managers to run detailed cost analysis and provide competitive price recommendations that’ll encourage customer purchases.
Necessary Skills
Before jumping into a product control and pricing career, you’ll need to build your mathematical skills for using various statistical analysis tools to create well-informed pricing decisions. Having an analytical mind with great problem-solving skills is essential for pricing managers to correct sales drops. Leadership skills are a must for product control and pricing managers to oversee staff working in the company’s pricing department. Managers must be good communicators with the public speaking skills to clearly present their pricing recommendations. Possessing the business acumen to build the organization’s strategy for pricing excellence is crucial. Product control and pricing managers should be creative thinkers, team players, and attentive to details.
Degree and Education Requirements
The majority of employers will only hire product control and pricing candidates who have obtained at least a four-year bachelor’s degree from an accredited business school. Most aspiring pricing managers will receive an undergraduate major in accounting, finance, statistics, marketing, or business administration. Regardless of your major, make certain that you’re taking electives related to commercial finance, valuation, pricing analysis, economics, strategic planning, and cost accounting. Going back to graduate school isn’t required, but it can pay off by expediting the promotion process. Consider obtaining a Master of Accounting (MAcc), Master of Science in Finance (MSF), or Master of Business Administration (MBA).
Pros and Cons of the Position
Like any other field, product control and pricing will provide its fair share of rewards and challenges that you should be aware of beforehand. On the plus side, pricing managers enjoy high income potential with excellent benefit packages and bonuses. Favorable prospects are expected for the next decade, so job hunting could be quick. There’s the ability to work in a wide array of industries from automobiles and pharmaceuticals to retail. Product control and pricing managers have plenty of room for advancement into senior executive positions with time too. However, pricing managers have a stressful job in helping organizations make sound financial decisions that could significantly impact sales. Working long hours beyond the traditional 40-hour week is typical. Certain product control and pricing jobs may require investing in an advanced master’s degree. Continuing education may also be mandatory.
Getting Started
Successfully landing a job in product control and pricing will require that you have at least three to five years of experience in assessing market trends to judge product performance. While earning an appropriate degree, start bolstering your resume with internships, field practica, co-operatives, and consulting work. Find local part-time job opportunities through your college’s Career Services department would be helpful. You may have to begin at the bottom in entry-level staff accountant, financial analyst, cost analyst, or purchasing agent positions. This will give you the numerical know-how for producing solid pricing recommendations. Pursuing professional certification is also advised. Through the Professional Pricing Society (PPS), you can become a Certified Pricing Professional (CPP) by passing an accreditation exam. Online training courses and workshops will be required for being certified in the art of pricing.
Future Outlook
As our global economy recovers from the Great Recession, expanding organizations will be placing greater emphasis on generating new sales. Demand in product control and pricing is expected to grow steadily while companies seek increasing competitiveness. Pricing managers will be hired to draft effective strategies that keep their organizations profiting. According to the BLS, the employment of pricing managers and other sales managers is expected to grow by eight percent through 2012 for 29,800 new jobs. Of course, growth will vary based on the industry or sector of employment. Product control and pricing positions can be found at manufacturing firms, private corporations, retail traders, wholesalers, financial institutions, insurance carriers, and investment banks. Having a master’s degree will be the most marketable.
Overall, managers in product control and pricing are given the hefty task of monitoring current market activities to mark fair value prices that get products sold. Product control and pricing managers will direct the organization’s pricing strategy formulation to maximize profitability. If you make the rewarding decision to pursue a career in product control and pricing, you’ll become a prominent member of the management team to help stimulate sales growth for a bright corporate future.
