Many Australian small and medium enterprises (SMEs) treat positioning and pricing as separate exercises. We see this as a missed opportunity. They’re deeply connected – your positioning fundamentally justifies your price, and your price reinforces your positioning. Getting this relationship right is crucial for sustainable growth, especially as competition intensifies.

Think of positioning as the ‘space’ you want to own in the minds of your customers. It’s about how you’re different and better than the alternatives. Are you the premium option, the value leader, the most innovative, or the most convenient? Your price isn’t just a number; it’s a signal that communicates your position. A luxury positioning demands a premium price, while a value positioning requires competitive pricing.

Here are a few key insights to consider:

• Premium Positioning, Premium Price: If you’re positioning as the highest quality or most exclusive, a lower price undermines that message. Customers expect to pay more for perceived superiority.
• Value Positioning, Competitive Price: Positioning around affordability or getting the ‘most for your money’ requires a price point that reflects that value. It doesn’t necessarily mean being the cheapest, but it does mean offering strong benefits relative to the cost.
• Positioning Before Pricing: We always advise clients to define their positioning *before* setting prices. Trying to determine your position based on cost alone is a recipe for commoditisation.
• Price as a Positioning Tool: Your pricing can actively *create* or *strengthen* your position. For example, a deliberately high price can signal exclusivity, even if the product isn’t dramatically different.

It’s also important to remember that positioning isn’t static. As market conditions change, or as competitors enter the space, you may need to revisit both your positioning and your pricing. Regularly analysing your competitors’ strategies and customer perceptions will help you stay on track. Looking ahead, understanding evolving customer expectations will be vital as we move into 2026 and beyond.

Ultimately, a clear and consistent relationship between your positioning and pricing builds trust and reinforces your brand’s value. If you’re unsure where to start, begin by clearly defining your ideal customer and the unique benefits you offer them. This will provide a solid foundation for both your positioning and your pricing strategy.