Most businesses will need to draw up a price list at some stage. If you sell a fixed range of products, this may be the only form of pricing you need. This type of standard price list can also be used as the basis for pricing your non-standard orders.
Special pricing rules apply to certain types of business including retailers, restaurants, pubs and garages.
The price you give is only an offer - you can't be forced to sell at that price. However, your customers will expect you to honour the prices on your price list.
It's a good idea to date your price lists - particularly if your customer is likely to keep it for a long time. You should make it clear when any special offers expire. It can also be useful to include a clause at the end of the price list stating that prices are subject to change.
If your business sells to consumers, you should list all prices inclusive of VAT. If you sell to other businesses, it is common practice to give prices excluding VAT. However, you should clearly state that this is what you have done.
You should make clear whether any delivery, packing or postage costs are included in your prices. Additionally, although you don't have to indicate discounts for bulk purchases on your price list, it might attract more business.
Clarity is important - the clearer your price list is, the less scope there is for misinterpretation, misunderstanding or confusion.
You may be able to use software packages to help you draw up complex price lists.
Know your legal responsibilities
- Do you need a licence?
- Get the right business insurance
- Comply with the law when providing goods and services
- Know your customers' rights
- Distance and online selling rules
- Understand pricing legislation
- Buying goods from outside NI
- Selling goods outside NI
- GDPR compliance checklist
- Pay your business rates
- Understand staff contracts and your responsibilities
- Taking on contractors and subcontractors
- What you need to do about health and safety
- Know your legal obligations on pensions
Understand tax and VAT
Sell and market your products or services