Organizational Design of the Pricing Specialist Function

The pricing function requires people and tools to accomplish the analyses required to inform pricing decisions, from business strategy through pricing strategy, market pricing, price variance policy, to price execution. We examine elements of the pricing community which can be meaningfully centralized and highly elements which are best decentralized. While research indicates that the best placement of a pricing function is within earshot of the CEO, the specific reporting structure is strongly dependent on the firm's broader organizational structure. In developing a pricing function, executives must consider its size, key performance indicators, makeup, traits, and career paths of the individuals which make up the pricing function. Software has been developed in pricing analytics, price setting, and price execution to supplement the efforts of the pricing function.