How to price your product in Australia (2025)
Key facts: How to price your product in Australia
Brief, factual overview referencing current Australian context (e.g. 2025 ecosystem norms, official guidance, privacy expectations, or common pathways).
How do I calculate a price floor from my costs?
Add COGS, fulfilment, fees, GST position, and a target margin to avoid selling below contribution.
What do competitors charge for similar offers?
Benchmark inclusions, contract terms, and surcharges to understand credible price bands.
How can I test willingness-to-pay quickly?
Run price card interviews and a landing page A/B with two tiers, measuring conversion and churn risk.
How to price your product in Australia – Australian founders in 2025 are dealing with higher input costs, tighter capital, and sharper competition. Pricing is now a core product decision: it shapes margin, signals quality, and affects trust under ACCC scrutiny.
Align unit economics before picking a price
Start with a clean unit economics model: cost of goods sold (COGS), payment fees, fulfilment, support time, and marketing cost to acquire a customer. Set a price floor that preserves contribution margin after discounts and taxes. For subscriptions, model churn and payback period; for physical goods, include returns and warranty provisions typical in Australia.
Blend three signals: cost, value, and competition
Use cost-plus to set the floor, competitor benchmarks to stay credible, and value-based pricing to capture willingness-to-pay. Map your value drivers (time saved, revenue gained, risk reduced) and translate them into outcomes that justify tiers. For competitors, note what is bundled, contract terms, and any surcharges to avoid underpricing.
Practical ways to test willingness-to-pay
Run live price card interviews (3–4 price points), set up a landing page A/B test with two tiers, and measure click-to-checkout starts. Supplement with Van Westendorp or Gabor-Granger surveys for range finding. Ensure each test has clear success metrics, like target conversion at a sustainable margin.
Rapid pricing validation sprint (7–10 days)
- 1Map costs and margin floor; define a “good, better, best” tier hypothesis.
- 2Interview 8–10 target customers with live price cards and capture objection themes.
- 3Run a landing page or in-product prompt with two price variants; track conversion and churn signals.
Resources
Get templates and checklists
Download practical tools tailored to this topic.
Experiment Card
Preview
Decision Log
Preview
- Open
ACCC pricing and advertising basics
Official guidance on avoiding misleading pricing practices in Australia.
GuideOfficial - Open
ATO GST overview for small business
How GST applies to pricing, invoicing, and receipts.
GuideOfficial
Avoid ACCC red flags and build trust
Australian consumers expect transparent pricing. Avoid drip pricing (hidden fees revealed late), misleading “was/now” comparisons, and unfair contract terms. If you surcharge for payment methods or shipping, disclose them upfront. For subscriptions, provide clear renewal terms and easy cancellation paths that work on mobile.
When and how to adjust prices after launch
Review pricing quarterly against margin, churn, and competitor moves. If you raise prices, give at least 30 days’ notice, explain the value delivered, and offer options (grandfathering, annual discounts, or feature-limited plans). For physical products, consider price locks for pre-orders and communicate currency or freight volatility transparently.
Need help with How to price your product in Australia?
Get practical recommendations based on your goals, time, and experience level.
Get recommendationsYou can filter by topic, format (online/in‑person), and experience level.
Frequently Asked Questions
What pricing methods work best for a new product in Australia?
Most teams blend cost-plus to set a floor, competitor benchmarks to stay market-relevant, and value-based pricing to capture willingness-to-pay. For regulated sectors, check ACCC guidance and any industry-specific price disclosure rules.
How do I factor in GST when setting prices?
If you are registered for GST, list prices as GST-inclusive for consumer products. For B2B, clearly state whether prices are GST exclusive or inclusive. Confirm obligations via the ATO and keep tax invoices compliant.
How can I test willingness-to-pay quickly?
Run 5–10 moderated interviews with live price cards, pair with a landing page smoke test offering 2–3 tiers, and track click-to-intent (e.g., waitlist or checkout starts). Use Van Westendorp or Gabor-Granger surveys for directional ranges.
What are common mistakes first-time founders make with pricing?
Underpricing to chase adoption, ignoring unit economics, copying competitors without understanding their bundle, hiding fees that erode trust, and failing to revisit prices after costs or positioning change.
How often should I review prices after launch?
Set a quarterly review to compare actual margins, churn drivers, and competitor moves. For subscription products, communicate changes at least 30 days ahead with clear rationale and alternatives.
Does Australia have rules against misleading pricing?
Yes. ACCC enforces rules against drip pricing, fake discounts, and unfair contract terms. Display total prices clearly, avoid “was/now” claims without substantiation, and ensure any surcharges are disclosed upfront.
About the Author
Dr Sam Donegan
Medical Doctor, AI Startup Founder & Lead Editor
Sam leads the MLAI editorial team, combining deep research in machine learning with practical guidance for Australian teams adopting AI responsibly.
AI-assisted drafting, human-edited and reviewed.