Society in the workplace has this common concept where you must either have a bachelor’s degree or a MBA to be an effective pricing professional. We understand the importance of a good college education, as the level of knowledge definitely increases. Yet, what about the individual who doesn’t have the MBA or even a college degree, yet has a level of expertise and a proven track record?
Do you simply ignore him or her because of that lack of education? Do think that this person doesn’t have to knowledge to make solid business decisions? That’s common in a lot of hiring decisions. However, this is where we draw the line – college degree or successful business achievements.
Let’s make this emotional…
Do you choose an individual fresh out of college who has a degree in Finance, Accounting, or Business Administration? Do you allow him or her to run your revenue and pricing strategies with trial and error, high amounts of risk, and take a chance that your bonus will be still be available at the end of the year?
Now, Mr. Fancy Pants - we all know those who take risks generally win, but in a corporate environments with 1,000+ employees or your own business, that's a different story...Or…Do you allow yourself the opportunity to hire someone who may not have the degree, yet has a proven track record, has worked in another organization or organizations where he has accelerated growth on an annual basis?
That’s a tough decision.
However, it depends where your business is financially? If your business is in a sound position where a slight change to revenue strategy through pricing elasticity trials are being run with high risk, then the college educated is the way to go. If your business is consistent or flat, perhaps hiring someone not right out of college may be more effective.
If your business allows you to hire two analysts, then I would recommend hiring both individuals, but don’t immediately make the non-college educated hire the junior analyst and the one with the degree the senior analyst. Hire them both on the same level and let good old fashioned competitive nature and work ethic decide who is more effective at building your revenue and pricing strategies.
Hire the right analyst and ask the right questions. Here are some questions that we recommend when interviewing for a pricing analyst role:
How does top-line vs bottom-line strategy differentiate itself?
If we were to enter a market recession, how would we grow our revenue in a down economy?
How do you build functional data analysis into your pricing strategies?
What is your knowledge of pricing psychology and can you offer some examples?
Share with us some pricing elasticity trials that you have used and failed at.
These are recommended questions that have been used and worked very well. We have found that through successful interviewing of candidates with and without education can both be rewarding. We wish you best in your candidate search!
Revenue Growth Masters is a consulting organization that helps small business and individuals elevate their revenue strategies through pricing psychology and personal growth. For more information, please contact us today.