Pricing Analyst vs. Financial Analyst: What Are the Differences?
Learn about the two careers and review some of the similarities and differences between them.
A career in finance can offer many opportunities for those with the right skills and qualifications. Two common positions in this field are that of a pricing analyst and a financial analyst. Though both roles are important in the financial industry, there are several key differences between them.
In this article, we discuss the differences between a pricing analyst and a financial analyst, and we provide additional finance-related professions you may be interested in pursuing.
What is a Pricing Analyst?
Pricing Analysts are responsible for conducting market research and collecting data to help their company set prices for their products or services. They use their findings to develop pricing strategies that will help increase sales and profits. Pricing Analysts also work with marketing and sales teams to develop promotional campaigns and pricing discounts. They use analytical software to develop models that predict how changes in price will impact demand. Pricing Analysts typically have a bachelor’s degree in business, economics or a related field.
What is a Financial Analyst?
Financial Analysts provide companies with guidance on how to make smart financial decisions. They research and analyze financial data to help companies make well-informed decisions about investments, pricing, and other financial planning matters. Financial Analysts typically work in banks, insurance companies, accounting firms, and other financial institutions. They use their skills in math and financial analysis to forecast future financial outcomes, identify trends, and recommend solutions to financial problems. Financial Analysts typically have a bachelor’s degree in finance, accounting, economics, or a related field.
Pricing Analyst vs. Financial Analyst
Here are the main differences between a pricing analyst and a financial analyst.
Job Duties
Financial analysts and pricing analysts perform similar tasks, such as collecting data, researching market conditions and analyzing financial records. However, the daily responsibilities of each role differ because of their focus on different aspects of a business. For example, a pricing analyst may determine how to increase sales by lowering prices or offering additional incentives. A financial analyst may determine how to improve overall profitability by reducing production costs or finding new sources of capital.
Job Requirements
Pricing analysts and financial analysts typically need a bachelor’s degree in business administration, accounting, finance or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many pricing analysts and financial analysts pursue certifications through the Financial Industry Regulatory Authority (FINRA) or the Chartered Financial Analyst (CFA) Institute. These organizations offer training programs that teach professionals how to use financial software and other tools they might need on the job.
Work Environment
Pricing analysts typically work in an office environment, but they may also travel to visit clients and observe their operations. They may also attend trade shows or conferences where they can meet with potential clients. Financial analysts usually work in an office setting, but they may also travel to meet with clients and conduct research.
Financial analysts often spend long hours at the office, while pricing analysts may have more flexible schedules that allow them to leave early or come in late. Pricing analysts may also work weekends if they’re working on a project for a client who needs assistance outside of regular business hours.
Skills
Pricing analysts and financial analysts both use analytical skills to examine data and draw conclusions. They also need to be able to communicate their findings clearly, whether in writing or verbally. In terms of specific skills used on the job, pricing analysts may benefit from having experience with statistical analysis and software, such as Excel, while financial analysts may find that skills in accounting and financial modeling are helpful.
Salary
Pricing analysts earn an average salary of $74,036 per year, while financial analysts earn an average salary of $71,352 per year. Both of these salaries may vary depending on the size of the company, the location of the job and the level of experience the analyst has.