Absolutely. Australian businesses can, and many do, succeed without constantly battling on price. In fact, relying heavily on price as a competitive advantage is often a race to the bottom, eroding margins and diminishing brand value. We see this time and time again with our SME clients. The key lies in understanding and leveraging what we call ‘market positioning’ – how your business is perceived in the minds of your target customers relative to your competitors.

For too long, many Australian businesses have defaulted to price competition, particularly with the rise of large overseas players. However, consumers are increasingly looking for more than just the cheapest option. They want value, experience, and businesses that align with their beliefs. This creates significant opportunities for SMEs to differentiate themselves.

• Focus on Niche Markets: Targeting a specific, well-defined customer segment allows you to tailor your offerings and messaging, becoming the go-to expert for that group. This reduces direct price comparison with broader competitors.
• Build a Strong Brand Identity: A compelling brand story and consistent brand experience create emotional connections with customers. People will pay a premium for brands they trust and identify with.
• Deliver Exceptional Customer Service: In a world of automated responses, personalised service is a powerful differentiator. Going above and beyond for your customers fosters loyalty and positive word-of-mouth.
• Emphasise Unique Value Propositions: What do you offer that your competitors don’t? This could be superior quality, innovative features, faster delivery, or specialised expertise. Clearly communicate this value to your target audience.

We’re seeing a growing trend towards ‘value-based pricing’ where businesses price their products or services based on the perceived benefit to the customer, rather than simply cost-plus-margin. This requires a deep understanding of your customer’s needs and willingness to pay. Investing in market research and customer feedback is crucial. As we move into 2026, this approach will become even more important as consumers become more discerning.

Ultimately, competing on price is a short-term strategy. Building a sustainable business requires a strong market position based on value, differentiation, and customer loyalty. If you’re ready to move beyond price wars and unlock your business’s true potential, we recommend starting with a comprehensive market positioning workshop to identify your unique strengths and opportunities.