Price Protection Policies

Shopping for the best price is important in today's economy.

According to the Consumer Price Index, inflation rose 58 percent from 1982 to 2010. Now, more than ever, shopping for the lowest price on goods and services is important, and this is where a price protection policy comes into play.

Significance

Price protection is a marketing tool or incentive program vendors use to attract customers. They offer rebates to consumers for the cost difference between the asking price and the sale price whether sold in their store or at another establishment. Some offer rebates while others propose holding a product in stock until the price goes down, then selling it for the lower amount.

Considerations

To claim reimbursement, written documentation is necessary, a credit card or in-store receipt, and proper verification, such as an original newspaper ad with the date clearly visible. There is a short time frame for this service, commonly 30 to 60 days.

Features

Keeping track of product prices is time-consuming. Several websites offer to do this service for you by monitoring selected companies for price reductions. Some use email while others provide tools to download onto your computer announcing when a price is lowered. Many provide this service at no cost while others offer a short, free trial period.

References

• InflationData: Current Consumer Price Index
• Komando: Price Protection Tools
• Distributionbusinessarticles: Price Protection Defined

Resources

• Priceprotectr: Save Money With Price Alerts
• Pricedrop: Price Drop
• Dealnews: Price-Protection Trackers