Pricing Management

Pricing management is the work of setting, maintaining, and reviewing the prices a business charges. Its main functions include:

• Reviewing costs: Understand product, labor, shipping, and other costs that affect profitability.
• Studying the market: Consider customer demand, competing offers, and the value customers see in the product or service.
• Setting prices: Establish standard prices, markups, and profit margin targets.
• Managing discounts: Define promotional prices, volume discounts, and who can approve exceptions.
• Updating systems: Keep prices consistent across quotes, websites, catalogs, and checkout or order systems.
• Checking accuracy: Investigate pricing errors and resolve differences between quoted and billed prices.
• Monitoring results: Review sales volume, margins, and customer response, then adjust prices when needed.
• Communicating changes: Tell sales, customer service, and customers about relevant price updates.

The goal is to set prices that customers will accept while supporting the business’s sales and profit goals.