//Expert Judgment in Pricing
Expert Judgment in Pricing 2018-11-08T13:09:30+00:00
Expert Judgement

Expert Judgment in Pricing

Sometimes, getting an expert judgment in pricing your products is the wisest thing you can do.

In some cases, pricing your products can be simple. You just calculate your costs, add your profit margins and you’re all good. In some other cases, the situation is much more complicated than that.

Overview

When the pricing process is just too complex for you and your staff to handle, it’s time you start thinking about hiring an external consultant. Sometimes, getting an expert judgment in pricing your products is the wisest thing you can do.

If you mess up your prices, you’ll find yourself losing money. In most of cases, the money that you’ll lose will be much more than what it would have cost you to hire a pricing consultant.

 

 

Important Considerations

When using an external pricing consultant, there are some points that you should always keep in mind. By doing so, your experience with the consultant will be as smooth as possible and you’ll get an expert judgment in pricing that achieves the intended results.

Industry-relevant experience

When you’re choosing a pricing consultant to work with, the experience is something that you will have to consider. Usually, a consultant with more experience is considered better, which is true to a certain extent.

The thing that you should keep in mind the experience is that it’s not all the same. A pricing consultant might have twenty years of experience. Out of those twenty years, he worked in your niche for one year.

On the other hand, you might have another consultant with five years of experience. Out of those five years, four have been in your niche. Generally, a consultant with experience in your niche is a better hire.

In addition to being better, the second consultant could be cheaper, as they have less overall experience. Before you make a hiring decision, always evaluate the experience of the pricing consultant that you’re hiring carefully.

Experience vs. Certifications

Another thing that you’ll have to carefully asses when hiring an expert judgment in pricing service is certifications. You’ll find out that there are many types of certificates out there. Some of them take years to complete, others may require weeks. Some are very credible and well-known, others are not very.

In addition to assessing the different certifications that a candidate pricing consultant has, you must take their experience into consideration as well. All the world’s certifications don’t really mean that much if a candidate doesn’t have solid, firsthand experience.

A balance between certifications and hands-on experience would be the best thing to go for. If you must choose between either experience and certifications, experience definitely outweighs certifications. You want something who has done it before instead of something who has read about it, even extensively.

Actionable advice

The role of an adviser/consult -as you already know- is to give advice. The type of advice though that each consult gives makes them differ from each other significantly. While some consults provide actionable advice that you can directly put into got use, others might provide the kind of advice that is theoretical at best.

If you end up with a consultant of the second type, the advice you get won’t be of good use and you’d have mostly wasted both your time and money. How do you know if a consultant’s advice is any good before hiring them? By checking their published work.

When you check a consultant’s published work, you’ll be able to tell what kind of advice they offer before even speaking to them. This might require putting some time into research. However, the time and money you’ll save by getting the right expert judgment in pricing service is worth it.

Know your business better than anyone

One thing that you need to remember about consultants is the fact that they are humans. A pricing consultant isn’t immune to making mistakes, so some errors may occur.

To prevent this from having a devastating effect on your business, you must be able to check and evaluate the consultant’s work. After all, you know your business better than anyone.

Whatever the advice that the consultant gives, you must be able to tell if it’s the right decision for your business or not without having any kind of bias or prejudice.

 

 

How can Sniffie help?

Sometimes, hiring an external pricing consultant is a must. A product can be too complex for you and your team to price correctly, and that is totally fine. What isn’t fine though is you not having an idea at all about how much the product should cost. To make hiring a pricing consultant as risk-free as possible, you should have a rough idea about a product’s expected cost.

By helping you find out about the prices of similar products on the market, Sniffie makes figuring out a rough price for your product before working with a pricing consultant much easier.

Check out Sniffie’s features and our service page to find out how Sniffie can help.

Strategy card

Strategic importance (retail) 70
Strategic importance (ecommerce) 86
Ease of use 84
Practical implementation 83

How to use expert judgment in pricing

  • Determine if the use of an external pricing consultant is needed.
  • Figure out the exact type of help that you need.
  • Find the top pricing consultants in your industry.
  • Evaluate your options to make sure you end up hiring the right consultant.
  • Used when the pricing process of one of your products is too complex for you and your team to handle.
  • Always know what exactly it is that you need from a pricing consultant before hiring one.
  • Make sure you evaluate all applicants thoroughly.
  • Have a rough idea about how much you should charge for your product.
  • Hiring a consultant with experience in your industry is always better.