Pricing for Profit: The Australian Business Owner’s Guide
Pricing is the highest-return lever available to an Australian business and the least used. This is the whole discipline — the arithmetic, the psychology, and where to start.
Pricing is the highest-return lever available to an Australian business and the least used. This is the whole discipline — the arithmetic, the psychology, and where to start.
On a $1m business at 10% net margin, a 5% price rise adds $50,000 to profit. A 10% cut to discretionary costs adds about $15,000. Same business, same year, three times the result.
Nine levers move profit. Most Australian businesses work them in almost exactly the wrong order. Six questions to find out which one you should be on.
When it gets tight, 44% of Australian small businesses say letting someone go is their first move — ahead of trimming products, cutting software, or touching price. Here is what that costs, and what the national data says it has already done to the sector.
Most Australian businesses work the profit levers in almost exactly the wrong order. Here is the hierarchy, ranked by impact per unit of effort — and the evidence that the market has it inverted.