Good Pricing Practices can Reap Rewards for a Business

If you want improved customer satisfaction, along with increased profits for your business, good pricing practices can help you achieve those goals. While satisfied customers generally mean repeat business, price errors that stem from haphazard or inefficient pricing practices can cost your business money. According to the Federal Trade Commission, it is against the law to charge more than the advertised shelf price. Stores that do may be subject to civil and criminal fines.

If your pricing practices need improvement, the National Conference on Weights and Measures offers these step-by-step suggestions:

• Develop written procedures for all forms of pricing activity in your store. Include ways to ensure that the price in the store matches the posted or advertised price. Remember that your customer expects to receive the lowest price posted or advertised.
• Develop training programs for employees that stress your commitment to accurate pricing.
• Designate a pricing coordinator for your company.
• Give one employee responsibility for the accuracy of prices of all Direct Sale Delivery items. Make sure DSD vendors check with the pricing coordinator before they do any pricing.
• Check prices of a random sample of items - 50 or so - every day to ensure that the price in the computer matches the posted or advertised price.
• Make sure prices in every aisle, section or area of your company are checked several times a year. This is the only way you will find all of the undercharges.
• Have the inventory audit team conduct a pricing audit while they do an inventory audit.
• Use a portable label printer during price audits to immediately replace incorrect or missing shelf labels.
• Offer your customers a reward if they are overcharged. Giving one item free (up to a maximum dollar value) to any customer who correctly reports an overcharge can help build customer loyalty and support.