Pricing

How will you deal with the GST rate increase as part of your overall sales and pricing strategy? Will you pass on all of the GST increase, or will you fully or partially absorb the GST?

Yet again, will you take this opportunity to increase your price?

At the end of the day your pricing and therefore sales strategy will depend on the composition of your customers (are they GST registered or are they end users who cannot reclaim GST?), demand for your goods and services, not to mention your competitors’ reactions to the same issues.

You’ll need to update all of your marketing and sales collateral and that includes any web pages.

And here’s one of the big issues for retailers – you’ll need a plan for updating shelf and catalogue prices.

And a word on pricing… Check out the following price reduction and price increase tables... They challenge your thinking on price discounting and price increases don’t they?

Reducing Price

If your present margin is...

Increasing Price

If your present margin is…