Pricing Done Right

CHAPTER 8 Organizational Design of the Pricing Specialist Function

Throughout this discussion of pricing and business strategy, many functional requirements for the pricing specialist role have been identified. We have seen that pricing decisions are best done through a cross-functional approach that engages marketing, sales, finance, and others within the larger organization. We have seen that pricing-specific analyses can meaningfully contribute to better pricing decisions at the corporate strategy, pricing strategy, market pricing, price variance policy, and price execution levels. And we have seen that these pricing-specific analyses require pricing-specific data collection and the application of specialized pricing techniques.

To collect the data, perform the analysis, and drive or inform decision-making throughout the Value-Based Pricing Framework, firms need a pricing-specific function. Yet where should this pricing function sit within an organization? Should it be a part of a larger organizational function or is it a stand-alone function? What type of people should be identified and groomed for pricing? And, what types of tools can be applied to get pricing done efficiently and effectively?

Note, the organizational design of the pricing function and the control over pricing decisions are distinct issues. As has been discussed, industry best practices and academic research both reveal that pricing decisions should not solely be under the control of the pricing function. ...