Pricing managers are essentially marketing managers tasked with developing pricing strategies for new and existing products or services. To establish prices and promotions, they measure the business goals of a company, such as revenue, market share and marketing reach, in contrast to the wants and needs of consumers. They may look at everything from purchase behavior and customer satisfaction to product penetration and demand to help move merchandise off the shelves.
Pricing Right Can Pay
In 2012, the average marketing manager brought home $129,870 a year, according to the Bureau of Labor Statistics. But this figure accounts for all marketing managers, regardless of specialty. A survey by the Professional Pricing Society found that those specializing in pricing didn’t garner pay that high. Though a 12-percent increase over the previous year, pricing managers averaged $111,602 in 2011.
Earnings Higher in Manufacturing
As with many marketing professionals, pricing managers find themselves working on either the manufacturing or distribution side of the consumer goods industry. In 2011, those working for manufacturers earned an average of $112,997 a year. This was roughly 11 percent more than the salaries of pricing managers at distributors, who brought home an average of $101,679, according to the PPS survey.
Salaries Tied to Success
The six-figure salaries are likely the result of responsibilities, as the success or failure of a product or service is at least partly due to proper pricing. Price often affects how consumers perceive anything in the marketplace. A high price, for example, could be an indication of a product’s quality and make it more desirable to consumers, driving demand. If, however, a pricing manager misjudges the value customers place on that product, the high cost could price it out of the market.
Covering Pricing Experience
As marketing professionals, pricing managers should know how to market their experience, and cover letters are an essential component of this. The American Marketing Association recommends doing some research on the prospective companies and then tailoring each cover letter to not only speak to the position but also to the industry, including the keywords from the job description and current trends in the market. The AMA also urges candidates to keep writing personable yet professional. Cover letters are sometimes the only opportunity applicants have for hiring manager to get to know them.
Highlighting Pricing Successes
Inevitably, what you choose to highlight in your cover letter is entirely up to you, but touching on successes can be beneficial. For example, you could mention your proven results, such as “increased current customer base by 25 percent through new pricing strategy of existing line of products.” Instead of a percentage, you may want to put a numeric value on your contribution to a previous employer, such as “structured a wholesale deal worth $15 million over the course of a year.” You may even want to mention the breadth of your experience, such as “responsible for evaluating more than 20,000 markets to maintain competitive pricing in the consumer packaged goods industry.” If you have limited experience with price management, you could focus on your experience and background in the industry.