Reviewing, changing and advertising prices
Your costs, competitors' prices and the demands of your target market may change over time. You should consider reviewing your prices on a regular basis so you have up to date information and you can make any pricing changes that are needed.
Review your prices regularly
Set up a formal review schedule (i.e. on a monthly, quarterly or 6-monthly basis) to help you keep on top of your cash flow and your pricing strategy. Key events that should prompt a review of your prices include when:
- a product, service or experience is not selling
- you start to sell a new product, service or experience
- your costs change
- your competitors decrease or increase their prices
- your competitors introduce a new product or service
- there are changes to your industry or the Queensland, Australian or international economies.
Some customers may be sensitive to fluctuations in price, therefore you may see demand for your products and services increase or decrease. Some markets are more price sensitive that others and sensitivity may change over time based on changes in your consumers lifecycle.
Many businesses advertise their prices but some do not. If your pricing is competitive it can be an advantage to advertise your prices as this will encourage customers to buy from you.
This strategy can attract customers, but it also makes it easier for them to compare prices. Savvy customers may use your advertisements to negotiate a discount or a price-match from one of your competitors.
Learn more about advertising.
Update your website
Customers usually expect to find a great deal of information on your website, and many will visit your website to research your business before they make contact with you. Make sure that all product and pricing information on your website is up to date.
Find out how to create a website.
- Your pricing must be fair, accurate and displayed correctly. Learn more about legal guidelines for sales practices including pricing.
- The Australian Consumer Law applies under the Competition and Consumer Act 2010 to protect consumers and ensure fair trading across Australia. The avoiding unfair business practices guide helps you to understand your responsibilities under the law.
- Learn how to develop a marketing strategy for your business.
- Learn about online marketing.