We are often asked by clients and prospective clients whether it is better to have a centralized or decentralized pricing function. Of course, without much more information the only answer to that question is, “It depends.” That said, we almost never recommend completely centralizing or decentralizing pricing. We generally believe a hybrid solution works best, with some level of centralization and some degree of local autonomy. The degree of centralization is dependent on the types of customers, capabilities, and competitors in the company’s business units, product lines, and geographies, and their respective pricing strategies.