How Small Businesses Can Nail Their Next Pricing Adjustment đď¸
Ever changed your prices and lost sleep over it? With prices rising in some businesses, dropping in others, and holding steady in yet more, itâs tough to know when a pricing adjustment is the right move. The pressure to get it rightâwithout losing customers or marginsâcan be overwhelming. So, where do you go from here?
What Big Retailers Teach Us About the Pricing Adjustment Dilemma
Big brands offer clues. We can look at how supermarkets like Woolworths, Coles and Aldi handle a pricing adjustment to spark smarter thinking for businesses of all shapes and sizes.
According to a recent report, Woolworths raised prices by 3.7%, Coles dropped theirs by 2.5%, and Aldi barely moved at all, holding steady with a slight 0.3% decrease. Each of these moves makes sense for those particular brands. Woolworths leans on specials and loyalty perks to maintain a âvalueâ feel. Coles dropped base prices to appeal to budget-focused shoppers. Aldi sticks to simplicity and low margins as a brand promise.
These are big-budget strategies, but they show something small businesses often forget: your pricing sends a message. Whether you raise, lower, or holdâitâs not just about covering costs. Itâs about telling customers who you are, what you stand for, and why they should choose you.
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When It Makes Sense to Raise Prices
This brings us to a common fearâraising prices. It can feel risky. Many business owners worry theyâll scare customers off. But sometimes itâs not only necessaryâitâs the right move. You might consider raising prices when your own costs have gone up and absorbing them is no longer viable. Or maybe youâve improved your product or service, and your pricing should reflect that added value. At other times, repositioning your business to attract a more premium customer base may require pricing to match.
The key is transparency. Raising prices without context can lead to confusion or frustration. But done right, price increases can actually build trust. A boutique coffee shop, for instance, switched to higher-quality, ethically sourced beans. They posted a sign at the counter explaining the change, including why it mattered and what customers could expect in terms of taste and sustainability. Their prices went up slightly, but their regulars didnât flinch. In fact, they leaned in.
Why Lowering Prices Isnât Always a Race to the Bottom
Still, raising prices isnât the only option. Some businesses might benefit from lowering themâif done for the right reasons. This might make sense if youâve found efficiencies that lower your costs, or if youâre entering a more price-sensitive market. Maybe your competitors have made a move and your customers are watching. Still, price drops should be targeted and intentional. Across-the-board cuts often backfire, making your offering seem less valuable or putting pressure on your margins.
A freelance graphic designer, for example, introduced a lean âstarter packâ for microbusinesses. It came with fewer revisions and simpler deliverables, but at a price that welcomed new clients who werenât ready for her full-service packages. She framed it as an accessible entry point, not a discount. The price was lower, yes, but the message remained one of value.
When No Change in Pricing Is the Smartest Move
And then, sometimes the best move is no move at all. Holding your prices steady can be a bold statement in itself. If your costs havenât changed and your customers are happy, consistency can foster loyalty. In a time when everyone seems to be implementing a pricing adjustment, staying the same can be a signal of reliability. It can also spare your team from the logistical strain of constant updates.
Take a neighbourhood pet groomer who weathered the inflation spike without changing rates. Instead, they improved scheduling and reduced last-minute cancellations. They told customers: âWeâre staying at $50 per sessionâbecause we believe reliability is part of great service.â Their pricing became part of their brand story. Clients respected the choice and kept coming back.
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Small Business Pricing Adjustment Decision-Making
So whether you raise, lower, or hold, remember this: your pricing is a form of communication. Itâs not just what you chargeâitâs what you say about your values, your standards, and your promise to customers. A small gym might hold prices but add new classes. A florist could raise prices and offer free local delivery. A tech startup might reduce onboarding costs to boost trial rates, then upsell with confidence.
Pricing Adjustment Strategies That Match Your Message
So hereâs what you can do today: take a fresh look at your costs and margins. And when the time comes for a pricing adjustment, lead with confidence and clarity. Your pricing is a narrative. Tell it well.
Whether youâre feeling stuck, unsure, or just curious about your next move, nowâs a good time to pause, reflect, and rethink what your pricing says about you. If youâd like to chat through ideas or get a fresh perspective, weâre here to help. Letâs make sure your prices work for your business, not against it.
For a comprehensive view of ensuring the continuous growth of your business, download a complimentary brochure on How To Drive Pricing Strategy To Accelerate Sales & EBIT Growth.
Are you a small or medium-sized business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
If so, please call (+61) 2 8607 7001.
You can also email us at team@valueculture.com if you have any further questions.
