Why Every Kiwi Business Should Review Their Pricing Strategy in the New Year

A new year brings new opportunities and often, new costs. For many New Zealand businesses, February is a great time to review pricing before the financial year wraps up. Adjusting your pricing isn’t just about charging more, it’s about ensuring your prices reflect the true value of your products or services and keeping your business sustainable for the year ahead.

1. Understand your true costs

Over time, expenses change, from supplier costs and wages to shipping and utilities. If your prices haven’t changed in the last 12 months, there’s a chance your profit margins have quietly shrunk. Review all your direct and indirect costs to make sure your pricing still covers them, while leaving a healthy margin for growth.

2. Consider the value you deliver

Customers don’t just buy a product or service; they buy the value behind it. Whether that’s your expertise, reliability, or customer service, your pricing should reflect what sets you apart. If you’ve improved your processes, upgraded your systems, or added new features, it might be time for your prices to reflect that added value.

3. Check your competitors — but don’t copy them

It’s helpful to understand where your prices sit in the market, but avoid undercutting others just to compete. Competing on value rather than price helps build long-term relationships and attracts the right kind of clients who appreciate quality and service.

4. Communicate changes clearly

If you decide to adjust your pricing, be transparent. Let your customers know in advance and explain the reasons, whether it’s rising supplier costs, higher operational expenses, or added value. Most clients appreciate honesty, especially when they understand it supports continued quality and service.

5. Use data to guide your decisions

Your accounting software, such as Xero, can provide valuable insights into your sales, profit margins, and cost trends. Reviewing these reports regularly helps ensure your pricing decisions are based on facts, not guesswork.

6. Get advice if you’re unsure

It’s easy to feel uncertain when adjusting prices, especially for loyal customers. If you need clarity, Sass’s business advisors can help analyse your numbers and develop a strategy that supports both profitability and client relationships.

Final thought

Your pricing is one of the most powerful tools in your business. Reviewing it regularly ensures you’re not only covering your costs but building a foundation for growth. A fair, well-considered pricing structure benefits everyone, your customers, your business, and your future.