Importance of Pricing Policies


Pricing integrity improves customer satisfaction, manages expectations, and builds loyalty. Creating a pricing policy will guide staff in this area and will protect you from liability.


  • Pricing that changes with different customers can bring price discrimination charges under the Robinson-Patman Act and carry substantial penalties. "Bait and Switch" advertising by luring the customer to buy an advertised item only to pressure them to pay more can bring charges too. Violating these and other laws also will hurt your reputation and hinder referrals.

The Plan

  • Address three main points: outside advertising, negotiation and in-store signage. To comply with law in advertising, you must "show, tell (about) and offer to sell" any advertised item. Have working displays, train staff about item features and instruct them not to discourage the customer from buying the product. Negotiation is acceptable as long as it is not done on the basis of protected classes (race, gender, etc.). In-store signage must be dated appropriately. If an item is tagged on sale without a clear expiration date, you must sell it to the customer.


  • Clearly post these considerations in your policy manual and make them part of ongoing training. Review each advertisement with staff, and document substitutions and rainchecks as needed.

Related Searches


  • Photo Credit sale 70% off sign. all sale sign. price image by L. Shat from
Promoted By Zergnet



You May Also Like

  • Importance of Policies & Procedures

    Small businesses often overlook the creation of policies and procedures. This simple task has the ability to save time and money in...

  • Importance of Accounting Policies

    Accounting policies are important to any business to maintain consistency and to set up a standard for decision-making. Based on policies, procedures...

  • Why Are Costs Important in Economics?

    Costs are an integral part to the field of economics because economics studies choices. The choices we make are based on weighing...

  • The Meaning of GSA Pricing

    The General Services Administration -- an independent federal office mandated to support the operations of U.S. government agencies -- serves as a...

  • Pricing Policies & Procedures

    Price is an important factor for marketing products. In addition to utilizing the laws of supply and demand, price communicates information about...

  • Ideas for a Policy & Procedures Manual

    A policy and procedures manual is a written document that details the rules of an organization and the specific ways it should...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!