Peter Veldhuizen Sydney After understanding the market, you need to set your prices. You must price your product or service competitively so you can attract customers, but yet so that you can profit from sales. Pricing too high will decrease sales while pricing too low will waste precious resources. Peter Veldhuizen Sydney Australia It's important to find the right balance between attracting customers and collecting profits- this is known as the price pole. Pricing too high will attract customers but not enough profits- whereas pricing too low will not bring in enough profits but will also scare away customers.