Pricing is emerging as a strategic, client-facing function that is pivotal to a firm’s commercial success. At the same time, many US firms are building increasingly sophisticated pricing functions in the UK. So what impact is this having on pricing talent? Totum’s Dee Deol reveals findings from our third pricing report.
Totum first launched our pricing report back in 2018. Back then, pricing teams were beginning to grow in headcount, moving beyond being a back office function into one of real strategic significance with an increased client and commercial focus.
This has continued to be the case as our 2025 iteration shows. Between 2018 and 2022, the average headcount of pricing teams doubled from four to seven. This year, an equal number of firms report having between 4-6 employees (31%) and 7-9 (31%).
Another element to this growth has been the impact of US firms placing pricing leaders and functions in London. The city’s geographical location coupled with a strong talent pool makes it an ideal base for global or EMEA-related pricing functions. This is exemplified by the fact that 10 US-headquartered firms took part in our pricing report this year. Our previous 2022 edition saw just three US firms reporting.
“One of the reasons US firms are looking to London for pricing is that it has such a deep talent pool. In terms of work pricing teams in UK law firms tend to have broader, more strategic and analytical responsibilities, reflecting how much the function has matured over the past five to ten years,” says Deol.
Often integrated with finance, business development and leadership teams, pricing professionals go beyond traditional pricing models to play a key role in commercial strategy.
“Their work involves deep matter and client analysis to understand profitability drivers, developing alternative fee arrangements and supporting strategic decision-making and increasingly client negotiations alongside finance and BD teams. They also coach partners on commercial awareness and client pricing discussions and are frequently responsible for firm-wide pricing frameworks and monitoring overall margin performance,” adds Deol.
London’s EMEA legal market is highly competitive, which has driven UK firms to develop pricing functions that are more analytical and strategic, focusing on profitability, alternative fee arrangements and client retention.
UK clients – especially corporates and multinationals – increasingly demand transparency and tailored pricing solutions, requiring pricing teams to act as consultative partners rather than just support staff. In contrast, US firms while competitive, have historically faced less pricing pressure. Their pricing teams evolved later and have remained more executional, focused on deals, RFPs and working closely with billing teams.
This transformation of pricing means that the required skillset of a pricing professional has also evolved. Where once the function was about technical skills, financial modelling and data analysis, the modern pricing professional is expected to also bring softer, more emotionally intelligent skills into play too.
Future skillsets
We asked our survey respondents to detail the skills and capabilities they believed would be most crucial to the future success of pricing teams. Unsurprisingly, commercial and strategic thinking (91%) was the most in demand skill, followed by internal relationship management (56%), the ability to engage and work with clients (50%) and entrepreneurialism to innovate pricing models (44%).
These findings point to a function that is as much about relationship building and influencing as it is numbers and calculations. As one of our pricing leader interviews puts it in our report: “Modern pricing is both an art and a science.”
Of course, finding these skillsets can be a challenge, particularly after a period of intense recruitment in the sector. However, US firms are often well-placed to offer compensation packages that attract most candidates.
“US firms have had a massive impact on pricing salaries. When a US firm wants a pricing specialist, they want someone who knows the market and can make an immediate impact – almost a plug and play,” says Deol.
“Because they have deep pockets, they’re able to offer salaries to attract the right person,” he adds.
There is a trade-off for candidates. US firms may offer higher salaries, but with this comes longer working hours to liaise with US counterparts and more in-office time.
“Most US firms in London are four days a week in the office, with UK firms normally three or even two. This extra flexibility can be a really big attraction for candidates,” says Deol.
Impact of AI
One new area we looked at in this report was the impact of artificial intelligence and technology on the sector. More than half (53%) of our survey participants say they are witnessing artificial intelligence and predictive analytics having an impact on pricing, with 59% seeing an increased emphasis on data-driven decision-making and 69% believing that the integration of technology for pricing optimisation is a future trend.
However, just 13% are currently using artificial intelligence to analyse pricing data with the vast majority (64%) planning on implementing AI in the next 6-24 months.
When asked about using technology and automated workflows for pricing approvals, compliance and adjustments, a similar figure (19%) said they were already doing so. However, 6% of respondents said they would not consider using AI for checks and approvals, suggesting the need for a final human sign-off in these areas. As with so much of the rhetoric around technology, many firms are seemingly aware of and monitoring potential AI innovations, but few are finding actionable interventions.
Our 2025 Pricing Report points to a maturing, strategically important function that requires commercially astute, emotionally intelligent professionals. With a remit that often goes way beyond traditional pricing work, the future of the function is commercial, client-facing and collaborative. These are exciting times for pricing professionals.
To learn more about the future of pricing teams, read Totum’s 2025 Pricing Report in full here.
If you’d like to discuss the survey in more detail or if you’re a firm seeking to hire, or a candidate exploring your next opportunity in finance, please contact [email protected]