[et_pb_section fb_built=”1″ _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.5″ header_2_font_size=”32px” custom_margin=”||0px|||” hover_enabled=”0″ header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n
Setting prices is not an easy part of running a business. Too high, and no one purchases from you. Too low, and you chase the bottom of the barrel with low-quality customers and slim profit margins. Finding the right price requires you to consider your financial position, your industry, and the big picture of what you want to achieve with your business.<\/p>\n
Let\u2019s look at how you can find the right price for your products and services.<\/p>\n
Before you can determine your pricing, you need to know what you want to achieve with your business. This is where you consider the big picture and set long-term goals aligned with the current stage of your business.<\/p>\n
At this point, you should develop or consult your business strategy<\/a>. Your pricing strategy needs to be woven into your business’s identity. Consider these questions when looking at prices:<\/p>\n Clarifying what you want to achieve will help you determine what to charge.<\/p>\n Your business goals need to align with the industry you operate in, your competitors, your customers, and the overall market.<\/p>\n Your industry and competitors are factors that determine your price. You need to research the typical price ranges in your industry and how your business fits within them. See what your competitors are charging: how do they justify their price? Is it through quality, service, or their brand recognition?<\/p>\n Here, you can find opportunities to leverage in your favour. For instance, consider a lawn mowing business breaking into another area. The business has identified that other competitors don\u2019t offer landscaping services as part of their packages. The business opens a new location and offers this service to set itself apart and attract customers through its competitive edge.<\/p>\n Analysing your customers and their behaviours is incredibly important to get right. You need to find:<\/p>\n To find these answers, go directly to the source. Whether you run an established or growing business, using customer feedback<\/a> can help you evaluate your pricing. You can also develop customer profiles and personas<\/a> to identify your ideal customer.<\/p>\n Market conditions influence your customers’ buying decisions. What\u2019s the current state of the economy\u2014is money tight, or do people have cash to throw around? If your business is seasonal, you need to consider how you adapt during slower periods and be flexible with pricing.<\/p>\n Another factor to consider is how resilient your business is to changes in market conditions. Mitigating risks through a flexible pricing strategy can help weather downturns. For example, our lawn mowing business offers tiered packages to suit different price points and customer needs. The lower package targets customers who can\u2019t afford the business’s top service. The business captures these customers, improving cash flow while maintaining profitability through its other offerings.<\/p>\n Given your business goals and industry, you should now have a sense of the price range you can charge. The next step is to cover your financial position. Start with your cost of goods sold (COGS<\/a>). Once you have your COGS, identify the indirect costs your business incurs through operational expenses (OpEx<\/a>). With these figures, you\u2019ll have a baseline and the flexibility to adjust the prices you set\u2014your wiggle room.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Scenario” _builder_version=”4.27.4″ _module_preset=”default” text_text_color=”#0a004a” background_color=”#eeecff” custom_margin=”30px||||false|false” custom_padding=”20px|30px|30px|30px|false|false” border_radii=”on|20px|20px|20px|20px” box_shadow_style=”preset2″ locked=”off” global_colors_info=”{}”]<\/p>\n Our lawn mowing business is looking to reevaluate its prices and increase profit margins. These are their findings on how much it costs per job:<\/p>\n COGS:<\/strong> $15-$20 (based on fuel, equipment, and consumables) Total:<\/strong><\/span> $70-$95 per job<\/p>\n With this information, the lawn mowing business uses a cost-plus pricing model and adds $50 to each job’s cost. This leaves them with a price of $120, yielding a profit margin of approximately 20%-40%. [\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2025\/12\/Pricing-Models.png” alt=”four different pricing models are value based, competitive, tiered, and dynamic” title_text=”Pricing Models” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”End” _builder_version=”4.27.4″ header_2_font_size=”32px” custom_margin=”||0px|||” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]Once you have your financial baseline, research, and business goals, you can begin to set a price and determine how to deliver it. In the example above, our lawn mowing business used cost-plus pricing. Cost-plus pricing is a simple yet effective way to set prices: add your desired margin to your costs.<\/p>\n You\u2019ll find this sort of pricing model used in trades, but it isn\u2019t the only way to set your prices. Other models include:<\/p>\n Pricing models help you set your prices, but you don\u2019t need to settle on a single model to charge your customers. Using concepts from different models can help you charge based on your goals, industry, and finances to maximise profit.<\/p>\n An example of this is airline carriers. Travelling is heavily influenced by factors such as seasonality and competitor pricing. To set prices, airlines will use a combination of the pricing models above, offering tiered and value-based pricing for business and first-class tickets and competitive pricing for economy. Regardless of the package customers choose, pricing will be dynamic and reflect the season.<\/p>\n Deciding what to charge your customers is important; you can\u2019t just set prices and expect them to pay. Your pricing needs to reflect your goals, customers, competitors, and operations. By considering these factors, you can come up with the right price to charge and find opportunities to maximise profit while running a stable business. Find the best pricing strategy for your small business. Tips to set profitable prices for products and services without losing customers.<\/p>\n","protected":false},"author":36,"featured_media":299910,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p> This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p> Let\u2019s go through it.<\/p> The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p> Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p> Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p> Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p> The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p> The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p> The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p> The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p> If you are unsure about the definition of casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p> The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p> Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p> Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote> In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p> Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p> After a consultation, the employer can accept or reject the notice of employment change.<\/p> When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p> When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p> Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p> Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p> Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p> As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for managing your staff<\/a>.<\/p> You may find that the new process has new opportunities for dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[343],"tags":[],"class_list":["post-299898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"\n\n
Researching your industry, customers, and market<\/h2>\n
Industry & competitors<\/h3>\n
Customers<\/h3>\n
\n
Market conditions<\/h3>\n
Financial position<\/h2>\n
Example<\/h4>\n
\nOpEx:<\/strong> $10-15 (Indirect costs associated with insurance, marketing, admin and vehicle expenses spread across 80 jobs per month)
\nLabour:<\/strong> $45-$60 (1.5-2 hours at $30\/hr)<\/p>\n
\n[\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\nAdopting a pricing model<\/h2>\n
\n
Setting your prices for your products and services<\/h2>\n
\n[\/et_pb_text][ba_social_share icon_bg=”#03002e” icon_padding=”10px|12px|10px|12px|true|true” layout=”classic” show_text=”off” btn_padding=”0px|0px|0px|0px|false|false” btn_bg_color=”RGBA(255,255,255,0)” _builder_version=”4.23″ _module_preset=”default” custom_margin=”50px||||false|false” custom_padding=”25px||||false|false” custom_css_before=” content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;” border_width_top_main=”1px” border_color_top_main=”#e4e4e4″ border_radii_icon=”on|5px|5px|5px|5px” global_colors_info=”{}” custom_css_before_last_edited=”off|desktop”][ba_social_share_child _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”facebook” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”linkedin” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”email” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"Key changes to casual employment rights<\/h2>
Who is affected by the employee choice pathway?<\/h2>
The process involved<\/h2>
Defining casual employment<\/h3>
Giving notice of employment change<\/h3>
Responding to a notice<\/h3>
Accepting or rejecting an employment change notice from an employee<\/h3>
What happens if there is an employment dispute?<\/h2>
The bottom line<\/h2>