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Give your customers the satisfaction of knowing they are getting the best price with a price match policy. Take a look at how to put a price match policy together and where to find a free template to give you a head start.
What is a price match policy?
A retailer uses a price match policy to promise to match a competitor's current price for the same item. Some retailers will go even further by promising to beat the price. Other merchants will pay customers the difference if the item can be found for a lower cost within two weeks of purchasing it.
Price match policies are not intended to force businesses into selling products below cost price or to operate at a loss, but can help maintain a good relationship between business and customers. A price match policy will explain the terms and conditions behind a price match policy so that consumers know how it works and how to take advantage of it.
Download this template at Lawpath
When should I use a price match policy?
Price match policies can be used if:
- You own or manage a business that sells products directly to consumers.
- You want to offer customers a transparent and honest way to seek price.
- You want to offer competitive prices.
Best price guarantee vs. price match policy
Best price guarantees are very similar in nature to price match policies but have a few different characteristics.
A best price guarantee promises a business has the best prices in the market. They will find and study competitors and lower their prices, making them the lowest in the market. The purpose of the best price guarantee protects the customer after purchase, ensuring they are getting the lowest cost product.
A price matching policy won't guarantee that a company is offering the lowest price. It will however, promise the customer that if they find a better price elsewhere, they can match it. Price matching policies generally don't extend after the initial purchase. Price match policies will only match a price, they won't beat it or add any discount.
What does a price match policy include and not include?
What to include in a price match policy
- What qualifies under the price protection policy
- Terms and conditions
- Price match breakdown
- Consumer rights
- Contact details
- What the offer does not apply to e.g online stores, sales
- A time frame in which the product can be matched in
- How the policy will be honoured
- Product verification
What not to include in a price match policy
- Names of competitors
- Open language that could be openly interpreted
- Promises you can't keep
- Misleading claims
How effective is a price match policy?
An effective price match policy ensures that a business doesn't lose a customer to a competitor with lower prices. Price matching can be thought of as a safety net for the sales funnel.
Do I need a lawyer to help write my price match policy?
A lawyer is not essential for writing a price match policy. However, if you don't have experience writing policies, it may be useful to have someone who works in the legal profession to look over it. This may stop any misunderstandings or legal issues from cropping up in the future.
Get access to customisable price match policy templates online
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How do I write a price match policy?
When writing a price match policy, you must make sure the scope of the policy is limited. Common restrictions include:
- Only identical products
- Online or in-store only
- Advertised prices versus over the phone prices
- Limited time restrictions
- Geographical limits
- Exclusions of limited edition items
You'll notice that most large companies have very detailed price match policies and restrictions with very specific use of language.
Where to get free legal documents and templates like a price match policy
If you're not sure where to start when you're drafting up your price match policy, you'll find loads of information online including samples and templates. Here are where to find some.
- Lawpath. An online legal resource featuring lots of free templates. All the templates can be customised and downloaded.
- LegalVision. Users can access unlimited legal templates for a monthly membership fee. Browse through their selection of policy samples to get inspiration.
- Wonder.Legal. Browse hundreds of legal templates on Wonder.Legal for free. You may be asked to pay a small fee to customise and download price policies and legal templates.
What are the pros and cons of a price match policy?
- Allows businesses to stand out from the crowd
- Might increase consumer trust
- Can improve sales
- Might lower profit margin
- Can distract focus from other parts of the business
- Possibility of price wars
- Encourages customers to engage with competitors
Frequently asked questions about price match policies
Do insurance companies need a price match policy?
It's common for insurance companies to adjust their price to match a quote from another insurer. Insurance companies know that in the time of price comparison websites, being able to match a quote will entice new customers and keep old ones loyal.
Who has the best price match policy?
There are many great retailers with effective price match policies including eBay, Emirates, Dan Murphy's and more. You can read our indepth price match guarantee guide for more examples.
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