Determine pricing objectives

One objective of pricing is to make a profit on your products or services, but there are many other pricing objectives that can affect your pricing decisions including:

  • Sales and finance targets.
  • Profit and/or cash flow targets. When setting your prices with this objective in mind, establish your targets early and try and find pricing strategies that will help you meet them.
  • How your products and services are positioned in the market place compared to your competitors.

Visit our Pricing strategies page for help on setting prices and our Finance topic for more information on cash flow.


Positioning can help you establish your products or services in the market, for example, your business might sell high-end products, try to compete on price, or get into the budget level market. Price can indicate a level of quality so it's important that the price of your products or services complement your overall brand.

Remaining competitive

For many businesses, being price-competitive is important, whether as a price leader or responding to the competition. When setting prices with this key objective in mind, it's always important to pre-empt what your competition will do in response to your prices and ensure that you factor it into your strategy.

Increasing demand

Using price to increase demand in new or existing products or services can be a good objective for establishing customers or boosting lagging sales. When multiple products or services are involved, it's a good idea to be aware of how the prices complement each other.

See our Pricing strategies page to find the best strategy to help you increase demand. It's important to always keep your main business and marketing objectives in mind when developing your pricing objectives, to ensure they are complementary to one another.

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