Advertising Discounts

[msfreud]

Hi
I have an online shop and I am going to do some discounts. Is there a legal requirement when you do discounts to show the original price next to the discounted price or is it enough to show only the discounted price on the website. Are there any implications in the accounting for these discoutns?

Thanks

[eequals]

As far as the retail sector goes, they are obliged to have had the goods on sale at the price on which the discount is based for at least one month.

For example suppose a large store group decides that it is going to order 10,000 pieces of a particular item and sell them for £2.00, which will be described as being 'half price' or 'buy one, get one free'.

What they do is to first order say 100 of this item from the supplier and sell those for £4.00 each for a month. Then they will order the 10,000 pieces and start the 'half price' or 'buy one, get one free' promotion.

They're all at it!

Joe

[MikeH]

Alternatively you can offer introductory pricing. As long as you raise the price to the correct fee after the introduciton then you will be OK. DFS and SCS are a good example of this.

Mike

[msfreud]

Thanks for you replies

I have another related question, given the fact that I am the producer of some products, can I change their normal prices as frequently as I want?
thanks

[eequals]

You can charge what you like for your products, whether you have produced them yourself or not. What you cannot do is to specify the price at which any customers of yours can sell them in turn.

Joe