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Pricing Concepts & Methods

Using data and information to set prices.
Level 1 Introductory: Demonstrates introductory understanding and ability and, with guidance, applies the competency in a few, simple situations. Can direct people to the appropriate source for further information.

BEHAVIORS

  • Demonstrates an understanding of the fundamentals of price-setting strategies such as cost-plus pricing, demand or value-based pricing, and competitor indexing.
  • Collects and maintains internal and external data to inform pricing decisions, e.g. customers, competitors, products and service offerings.
  • Follows prescribed methods to produce thorough and accurate reports summarizing pricing information.
  • Recommends price in line with appropriate price setting strategies.

QUESTIONS

  • Tell us about a time when you collected and maintained internal and external data to inform product pricing decisions.

Probing Questions

* What was the situation?

* What did you do?

* What was the product that pricing decisions were being made about?

* What was the result of your efforts?

  • Describe a situation where you prescribed methods to produce thorough and accurate reports summarizing pricing information.

Probing Questions

* What was the situation?

* What information did you gather and summarize?

* What methods were employed?

* What was the report used for?

Level 2 Basic: Demonstrates basic knowledge and ability and, with guidance, can apply the competency in common situations that present limited difficulties.

BEHAVIORS

  • Demonstrates an understanding of the relationship between pricing and the overall financial, marketing and strategic objectives of the organization.
  • Conducts pricing analyses on internal and external data to identify drivers for setting/changing prices e.g. labor market information, inflation, Consumer Price Index, price points, price elasticity.
  • Conducts an ongoing diagnosis of pricing performance using measurement tools (e.g. value maps).

QUESTIONS

  • Describe an occasion when you recommended a product or service pricing in line with appropriate price setting strategies.

Probing Questions

* What was the product or service?

* What were your personal responsibilities with regard to recommending product/service pricing?

* What were the appropriate price-setting strategies?

* What were the results of your recommendations?

  • Tell us about a time when you conducted pricing analyses on internal and external data to identify drivers for setting or changing prices.

Probing Questions

* What was the product or service requiring pricing decisions?

* What data and analysis were you tasked with providing?

* How did you conduct the requested analysis?

* What were your findings or recommendations?

* What was the impact of your analysis on product/service pricing?

Level 3 Intermediate: Demonstrates solid knowledge and ability, and can apply the competency, with minimal or no guidance, in the full range of typical situations. Would require guidance to handle novel or more complex situations.

BEHAVIORS

  • Implements strategic pricing policies across a range of products/services and segments.
  • Sets price consistent with strategic pricing policies and valid market analysis.
  • Manages pricing portfolio by customizing pricing to the unique needs of the customer and/or the market.
  • Integrates multiple analyses on industry dynamics and market conditions to assess the impact on price setting.
  • Uses product and customer lifecycle data to inform pricing strategies.
  • Makes recommendations to adapt pricing strategies based on interpretations of analytical data and pricing performance.

QUESTIONS

  • Describe a situation where you were responsible for implementing strategic pricing policies across a range of products/services and market segments.

Probing Questions

* What was the situation?

* What were the strategic pricing policies being implemented?

* How was the implementation conducted?

* What were the results of your efforts?

  • Tell us about a situation when you managed a pricing portfolio by customizing pricing to the unique needs of the customer and/or the market.

Probing Questions

* What was the pricing portfolio that you managed?

* What were the unique needs addressed?

* How did you address them?

* What were the results of your work?

Level 4 Advanced: Demonstrates advanced knowledge and ability and can apply the competency in new or complex situations. Guides other professionals.

BEHAVIORS

  • Develops pricing strategies aligned with the financial, marketing and strategic objectives of the organization.
  • Revises pricing strategies as necessary to accommodate changing market conditions.
  • Coaches others in pricing setting techniques and methods.
  • Provides organizational oversight with regards to price setting.
  • Foresees market changes and trends and anticipates how to adapt to them.

QUESTIONS

  • Tell us about a situation when you were required to develop pricing strategies that were aligned with the financial, marketing and strategic objectives of the organization.

Probing Questions

* What was the situation?

* What were the key alignment issues?

* How did the pricing strategies address the alignment issues?

* What were the results of your alignment efforts?

  • Describe a time when you identified market shifts and trends and anticipated how to adapt pricing strategy to them.

Probing Questions

* What was the situation?

* What were your personal responsibilities?

* What were the market changes and trends that you identified?

* What changes to pricing did you recommend?

* What was the outcome of these recommendations?

Level 5 Expert: Demonstrates expert knowledge and ability, and can apply the competency in the most complex situations. Develops new approaches, methods or policies in the area. Is recognized as an expert, internally and/or externally.

BEHAVIORS

  • Oversees the development of competitive and sustainable pricing strategies.
  • Promotes the strategic and creative use of pricing to achieve organizational objectives.
  • Influences the organization’s strategic direction through potential pricing strategies.
  • Champions pricing as a key value driver for the organization.
  • Monitors organizational revenue and recommends appropriate pricing strategies, taking into account pricing constraints and sensitivity of demand to price changes.

QUESTIONS

  • Tell us about a time that you promoted the strategic and creative use of pricing to achieve organizational objectives.

Probing Questions

* What was the situation?

* What was your role?

* What were the strategic and creative uses of pricing that you promoted?

* What was the impact of these strategic and creative uses of pricing on organizational results?

  • Describe a situation when you influenced the organization's strategic direction by proposing different pricing strategies.

Probing Questions

* What was the situation?

* What was your role and responsibility in this situation?

* What were the pricing strategies?

* How did the pricing strategies influence the organization’s strategic direction?