How to Set Pricing Strategy in Australia: The Complete Guide for Startup Founders

Q: Do I have to include GST in the advertised price?

Yes. In Australia you must display a single total price that includes GST and any mandatory fees. Optional charges (e.g., delivery) can be listed separately but must not mislead.

Q: Is drip pricing illegal?

Drip pricing can be misleading under the Australian Consumer Law. The ACCC has taken action where unavoidable fees appeared only late in checkout. Show the full price upfront.

Q: Can I use “was/now” pricing?

Yes—only if the ‘was’ price is genuine and recent. Fake anchors or short-lived high prices risk breaching ACCC rules on price comparisons.

Q: What metrics decide if my price works?

Track conversion rate, AOV, contribution margin (after fees/shipping/support), refund rate, and CAC payback. If AOV rises but margin falls, revisit costs, packaging, or price points.

Simon. P
Sep 17
6 min read

Price Is a Promise—Make It On Purpose

A Brisbane founder launched a D2C product at a “friendlier” price to win market share. Sales came in, cash didn’t. Shipping and returns ate margin, and the advertised price didn’t include the unavoidable “booking/handling” fee on checkout—customers felt misled and churned. Around the same time, an Australian cinema chain was fined for drip pricing—not showing the full ticket price (including mandatory fees) upfront. The message was loud and local: clarity beats cleverness, and pricing is regulated, not just strategic. Courier MailNews.com.au

If price is how you signal value and fund growth, a sloppy pricing strategy quietly taxes your runway.

Let me walk you through how to set your pricing strategy the right way—step by step.

setting price strategy is like a game a chess. — Price is leadership in a number format. Lead with value, price with truth.

What Is a Pricing Strategy?

Plain English: a pricing strategy is the system you use to decide what to charge, how to show it, and when to change it—so customers say “yes” and your unit economics work.

Here’s what this includes:

Models: cost-plus, value-based, competitive, tiered, bundles, dynamic
Packaging: good-better-best, add-ons, order bumps, discounts, trials
Display rules: single total price, GST-inclusive, no drip pricing
Change rules: promos, indexation to CPI, review cadence

Each lever can grow revenue—but only if it aligns with customer value and Australian pricing law (ACCC “single price”, no hidden mandatory fees, and honest comparisons). ACCCbusiness.gov.au

Why It Matters

Unit economics decide if you scale or stall

Price drives contribution margin, CAC payback, and runway. A 5–10% price lift can beat months of traffic hacks when margin is tight.

Trust is part of the price

If your displayed price jumps at checkout due to “fees,” customers feel tricked. ACCC has acted on drip pricing and unclear displays, and reputational damage lingers. ACCC Courier Mail

Positioning lives in your pricing

Price anchors perceived quality. Too low, you signal “risky”; too high without proof, you repel. Strategy matches value story + packaging + proof.

Momentum compounds

A founder we worked with moved from a single $79 offer to good-better-best tiers with add-ons. Same traffic, AOV up 22%, churn down, and cash to reinvest.

What You’ll Need Before You Start

Before you dive in, make sure you’ve gathered these:

Costs & margins: landed cost, fulfilment, support, payment fees
Value map: outcomes customers buy, not features
Competitor scan: price ranges, tiers, discount patterns
Legal checklist: single total price displayed (incl. GST and mandatory fees), no drip pricing, honest “was/now” comparisons ACCC+1 business.gov.au
Data sources: ABS CPI series (for indexation guidance) Australian Bureau of Statistics
Analytics: AOV, gross margin/order, conversion rate by price, refund rate

Having these ready upfront will save you hours later and reduce mistakes.

How to Set Your Pricing Strategy:

Step-by-Step

Step 1: Define the Job Your Price Must Do

Decide your primary objective: margin, market share, premium positioning, or cashflow stability.

Mentor Tip: Pick one hero objective—confused goals make confused prices.

Pro Tip: Write the one-line promise your price must communicate.

Warning: Discounting to fix weak positioning is a sugar hit, not a cure.

Step 2: Choose Your Core Model

Start with value-based (what the outcome is worth) and sanity-check with cost-plus and competitor ranges.

Mentor Tip: For services/SaaS, build good-better-best—it reveals willingness to pay.

Useful: ACCC on price displays & comparisons; be honest if you show “was/now”. ACCC+1

Step 3: Map Your Unit Economics

Calculate contribution margin after payment fees, shipping, support, bonuses, and typical discounts.

Mentor Tip: Model at least three baskets: lean, typical, heavy-support.

Warning: Free shipping isn’t free—price it in or cap it.

Step 4: Design Packaging to Fit Outcomes

Bundle for complete solutions (starter kit + care), add-ons for speed or convenience, and a premium tier for “best”.

Pro Tip: Name tiers by outcome (“Launch”, “Scale”, “Enterprise”), not features.

Step 5: Set Display Rules (Stay Compliant)

Show a single total price upfront, including GST and any mandatory fees. Don’t hide add-on charges during checkout. If you compare “was/now”, the “was” must be real and recent.

Mentor Tip: Transparency sells. Put price math in a tooltip or FAQ.

Check: ACCC price displays & drip pricing guidance. ACCC

Step 6: Price Test With Guardrails

AB test price points or packages for 7–14 days, watching conversion, AOV, margin, and refunds.

Pro Tip: Move in small steps (5–10%) to find the ceiling without breaking trust.

Step 7: Create a Discount & Offer Policy

Define eligible products, max discount, approval rules, and schedule (e.g., EOFY).

Warning: “Was/now” comparisons must reflect genuine former prices. ACCC

Step 8: Plan Price Reviews & Indexation

Review quarterly. For long-term contracts, consider indexing to CPI (clearly disclosed).

Reference: ABS CPI methods and releases (for transparent indexation). Australian Bureau of Statistics+1

Step 9: Align Comms & Collateral

Update website, ads, sales decks, checkout, invoices (ensure GST-inclusive clarity on invoices and tax rows). Australian Taxation Office

Pro Tip: Add a “Why this pricing” note—anchor value, not cost.

Step 10: Train the Team & Monitor Weekly

Equip support and sales with responses to “too expensive” and “what’s included?”. Track outliers (skewed refunds, coupon abuse).

Mentor Tip: If the team can’t explain the price in one sentence, you don’t have a strategy—just a number.

Trusted Australian links to check while you build:

ACCC – Price displays, single price, drip pricing (clarity and compliance). ACCC
ACCC – Pricing overview (surcharges, setting prices, accuracy). ACCC
ABS – CPI (for indexation references). Australian Bureau of Statistics
ATO – Tax invoices (showing GST clearly on invoices). Australian Taxation Office

What It Costs and How Long It Takes

Here’s what to budget for:

DIY (your time): 6–12 hours to model costs, define tiers, write price copy, and test. Tools: analytics + simple AB test; $0–$99/month.
Hiring a Specialist (low time, high clarity):

Option	Cost Range
Pricing/CRO Specialist (freelancer)	$1,500 – $5,000/project
Consultant (pricing strategy + testing plan)	$250 – $500/hour
Agency (research + packaging + implementation)	$3,000 – $15,000+/month

Benefits of Hiring (What Noize Helps With)

Fast, defensible price architecture
Clean compliance with ACCC display rules
Ongoing tests that lift AOV without hurting conversion

Money-Saving Tip: Run one good-better-best test on your bestseller before changing everything. Costs can vary, but these figures will give you a reliable starting point.

Common Mistakes Founders Make

Pricing from cost, not value

If you price to survive, you’ll never have the margin to grow. Anchor to outcomes, then sanity-check costs.

Hiding the real price

Fees at checkout feel like a bait-and-switch—and the ACCC agrees. Show a single total price upfront. ACCC

Copying competitors

You copy their price; you inherit their profit problems. Know your economics and your promise.

Discounting as a default

If every sale needs a discount, you have a positioning problem. Fix the offer, not just the tag.

“Set and forget”

Markets move. If you’re not reviewing quarterly, you’re drifting, not steering (and inflation quietly trims margin). Australian Bureau of Statistics

What to Do Right Now

✅ Download: Pricing Strategy Builder — Your quick-start tool for founders who want defensible prices and cleaner margins. Tier templates, compliance checklist, test plan. [Download from ProDesk.com]

✅ Need help? Want it done for you? Book with Noize — Get value mapping, packaging, and compliant displays deployed in weeks—not quarters. [Contact Noize.com.au]

✅ Get the full StartUp Deck — 200+ plays across pricing, offers, and growth systems. [theStartUpDeck.com]

The Bottom Line

Price is leadership in a number: it tells customers what you believe your work is worth.

Be clear, be compliant, and build in review rhythms.

FAQs

Do I have to include GST in the advertised price?

Yes—display a single total price that includes GST and any mandatory fees. Optional charges (like delivery) can be separate but mustn’t be used to mislead. business.gov .au ACCC

Is “drip pricing” illegal?

It can be misleading under the ACL. ACCC has acted against businesses that reveal unavoidable fees only at checkout—don’t do it. ACCC Courier Mail

How often should I review pricing?

Quarterly is a healthy cadence. For long-term contracts, consider clearly-disclosed CPI indexation. Australian Bureau of Statistics

Can I use “was/now” pricing?

Yes, but only if the “was” price was genuine and recent—no fake anchors. ACCC

What metrics decide if my price works?

Conversion rate, AOV, contribution margin, refund rate, and CAC payback. If margin drops when AOV rises, your offer or costs need work.