When to Consider Hiring a Pricing Consultant or Expert

Pricing is a critical driver of profitability, yet many companies struggle with when and why to engage pricing expertise. Whether launching a new product, navigating complex pricing challenges, or building a formal pricing function, a pricing consultant can provide the expertise and guidance to make strategic pricing decisions. However, careful consideration of the costs, benefits, and alternatives is essential to ensure long-term value.

Imagine your company is launching a new product or entering a competitive market. The stakes are high, and the right pricing strategy could determine your success—or failure. For many businesses, this is the moment they realise they need external expertise to avoid costly mistakes. But how do you know when hiring a pricing consultant is the right move?

Companies often face pivotal pricing challenges where internal resources may fall short. These situations include:

• Building a pricing function from scratch.
• Addressing a lack of internal expertise to handle complex pricing models.
• Optimising profitability in a time-constrained environment.
• Tackling strategic decisions like market entry or value-based pricing.
• Challenge existing pricing structures’ rationale
• Overcome pricing implementation resistance – either internally or from customers

Each of these scenarios presents unique challenges, but they share one common thread: the need for specialised expertise to navigate pricing complexities effectively.

Bringing in a pricing expert often becomes necessary at specific inflexion points in a company’s journey. Below are key scenarios when hiring a pricing consultant can provide critical value:

1. Building a Pricing Function

When formalising your pricing function, an expert can help design robust processes, establish data structures, create analytical frameworks and hire the right talent. They can also guide the creation of:

• A pricing council or committee to govern pricing decisions.
• A price variance policy to control deviations.
• A price desk to handle special pricing requests efficiently.

These foundational structures set the stage for long-term pricing discipline and effectiveness.

2. Lack of Internal Expertise

Companies without in-house pricing expertise often struggle with complex challenges, such as:

• Conducting market research and price sensitivity analysis.
• Developing dynamic or value-based pricing models.

A consultant can bridge this gap by providing objective, unbiased recommendations and bringing specialised industry experience to the table. A pricing consultant also brings credibility and an objective perspective, effectively engaging departments such as Sales, Marketing, Finance, and Product. Their expertise fosters alignment, ensures all stakeholders contribute to the pricing strategy and promotes a unified approach to value-based decision-making.

What our clients say:

Kaben’s senior stakeholder management skills helped us navigate internal approvals and secure buy-in. This was critical in implementing our pricing team’s work.

Secondly, Kaben’s deep experience in pricing strategy was invaluable. They guided us through a smooth transition to value-based pricing, while also upskilling our pricing team members. This shift has already led to significant improvements in profitability.

If you’re looking for a pricing expert who can deliver similar results, I highly recommend Kaben. His ability to navigate stakeholder relationships, coupled with his track record in pricing strategy and team development, makes them a valuable asset to any organization. 

David O, Pricing Manager

3. New Product Launches or Market Entry

Pricing can make or break a new product or market expansion. A consultant can:

• Assess customer willingness to pay through research.
• Analyse competitor strategies to position your product effectively.
• Design pricing models that maximise profitability while remaining competitive.

4. Complex Pricing Challenges

When facing situations like negotiating large deals, managing intense price competition, or transitioning to value-based pricing, an expert can offer:

• Negotiation strategies tailored to large-scale contracts.
• Sales team training and coaching on communicating value effectively.
• Implementation of price control mechanisms to prevent revenue leakage.

5. Limited Resources and Time Constraints

If your internal teams are stretched thin or lack the bandwidth to focus on pricing, outsourcing can deliver efficiency and speed. A pricing consultant can manage high-stakes projects while freeing your teams to concentrate on other priorities.

6. Driving Profitability Through Pricing

Strategic pricing is a powerful lever for profitability. Consultants can:

• Assess current pricing practices to identify gaps.
• Develop actionable strategies to optimise profit margins.
• Implement data-driven pricing changes for sustainable revenue growth.

Cautions and Considerations

While hiring a pricing consultant offers numerous benefits, companies should weigh the potential drawbacks:

• Cost: Pricing consultancy can be expensive, so it’s vital to evaluate ROI carefully. Kaben’s engagements typically generate an ROI of at least 20x.
• Over-Reliance: Consultants should complement internal teams, not replace them. Focus on building in-house expertise over time.
• Consultant Selection: Vet consultants thoroughly to ensure they have relevant expertise and a proven track record.

Alternatives to Hiring a Consultant

For businesses not ready to engage a consultant, there are alternative approaches:

• Develop Internal Expertise: Invest in training programs, workshops, and resources to build in-house knowledge.
• Leverage Existing Resources: Utilise data analysts, market researchers, and cross-functional teams to support pricing decisions.
• Utilise Pricing Tools: Implement software solutions to streamline pricing tasks and improve decision-making.
• Collaborate and Network: Learn from industry peers and professionals through networking and shared best practices.

Engaging a pricing consultant can be transformative, providing the expertise and perspective needed to navigate critical pricing challenges. By assessing when and why to bring in external help, companies can optimise their pricing strategies, align pricing with business goals, and unlock sustainable growth.

Why KABEN Partners?

At KABEN Partners, we specialise in helping companies navigate their most pressing pricing challenges, from building pricing functions to optimising profitability. Whether you’re launching a new product, entering a competitive market, or addressing internal skill gaps, we bring proven methodologies and deep expertise to deliver results.

Reach out today to explore how we can help your business leverage pricing as a strategic growth lever.