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That makes it clear. I think.

In the ACCC legal case against Coles, which alleged misleading, deceptive and inaccurate price discounting, advertising and marketing, Federal Court Justice Michael O’Bryan found the company guilty. Of what exactly?

The implications for pricing policies in general could be profound. A key question that arises is whether a minimum of 12 weeks is now the benchmark for price variations. If so, that will encourage businesses across the board to be more conservative in setting prices and more inclined to protect margins to cover unforeseen contingencies, including competitor and substitute actions.

Consumers will doubtlessly pay. The word premium may be unpalatable in a period of cost-of-living crisis, but it well may be accurate and appropriate.

AT ISSUE

Guilt-ridden decisions and their consequences could be resolved by adopting and applying a well-worn, proven, and successful pricing policy. “Every Day Lower Prices” is the essential promise of pricing, marketing, and advertising at Walmart, the largest supermarket chain in the world.

At its very core, the statement is absolute rather than relative (read: comparative). Hence, it would be difficult to contend that it is misleading.

The time horizon is one day. A constant price for a set 24-hour period appears clear, concise, innocent, and potentially arresting, tempting, attractive, and atypical (that is, not comparative beyond its own parameter of one day).

A vast majority of regular supermarket shoppers are informed, alert, price-sensitive and demanding. They recognise and respond to price and value attractiveness.

IT IS ALL IN THE TIMING

A key contributor to success in marketing is timing. It complements opportunism. It can create urgency, generate increases in footfalls, establish and sustain relevance, foster resonance, while also determining and influencing demand and cash flow.

Self-concluded timing by businesses enhances control, independence and stability. It affects the preferred scenario for reacting to pricing from competitors and substitutes.

More stable pricing is fundamental in establishing and having accepted value propositions.

Prices are like corporate identification packages (including logos). They should only be changed when necessary. Familiarisation, stability and consistency build trust, confidence, repeat transactions and loyalty.

” Trust me” is a typical by-product of “believe me”. It erases any trace of doubt which is inherent in the statement “unbelievable”.

CONVICTION PRICING

This projects a sense of best value based on quality, service and performance.

It is difficult, if not impossible, to guarantee. The lowest price. However, satisfaction (another measure) arising from value should be incomparable.

Pricing is not, nor should it be, solely based on costs and profit margins. Price can, and does, foster trust, relationships, loyalty and lifetime value. It is hard to beat that proposition.

THE VERDICT

So, you should be the judge.

When prices represent fair value, are relatively stable, are lower every day (in absolute and relative terms), and are self-determined, do they fulfil consumers’ expectations for peace of mind and advantageous buying opportunities?

Barry Urquhart
Business Strategist
Marketing Focus
M:      041 983 5555
E:       [email protected]
W:      www.marketingfocus.net.au

COMMENTARY: THE BUDGET

Much has been spoken about the 2026 Australian Federal Budget. Little has been agreed to or resolved.
Unintended consequences are emerging.

EVALUATE. EXTEND. EXTINGUISH. ELEVATE. LIKE. SHARE.