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Business Concept

Pricing Strategy

The practice of setting and adjusting prices so they reflect the value delivered, protect margin, and respond to changing costs and competition.

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● Summary
The practice of setting and adjusting prices so they reflect the value delivered, protect margin, and respond to changing costs and competition.
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What This Includes
  • Cost-based, value-based, and competitive pricing methods
  • Margin and break-even analysis
  • Price positioning and tiering
  • Price increase planning and communication
  • Discount and promotion strategy
What This Excludes
  • Day-to-day bookkeeping
  • Tax planning
  • Cost accounting systems
  • Negotiating individual supplier contracts
Common Misconceptions
  • Lower prices always win more customers, when they often just erode margin
  • Pricing should be set once and left alone, when it needs regular review
  • Customers only care about price, when value and trust matter too
  • Raising prices always loses customers, when a clear value message usually retains the right ones
Business Impact
  • Pricing flows directly to profit, so small well-judged changes can outweigh equivalent cost cuts
  • Many Australian SMEs have not raised prices in years despite rising costs, quietly eroding margin
  • A clear pricing approach reduces reflexive discounting that damages profitability
Practical Checklist
  • Calculate your true margin by product or service
  • Review prices at least annually and when costs move
  • Test a price change on one segment before rolling out
  • Pair any increase with a clear value message
  • Set discount rules instead of ad-hoc discounting
  • Benchmark against close competitors, not the whole market
Related Solutions
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Pricing Optimisation →
Related Services
Professional services relevant to this concept.
Pricing Consulting →
Related Goals
Business goals this concept supports.
Improve Cash Flow →Scale Revenue →Reduce Operational Costs →
Related Topics
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Platform Pages
How It Works→Methodology→Trust & Transparency→
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