Online Pricing Standards: Be Transparent, Build Trust

Why Honest Pricing Matters

Online shoppers today are smarter than ever. They compare, cross check, and remember every brand that either made them feel respected; or ripped off. That’s why pricing transparency is not only good ethics, it’s good business.

Hidden fees, confusing discounts, or misleading “was/now” deals can destroy credibility faster than a bad review. The goal? Let your customers know exactly what they’re paying, with no surprises at checkout.

Being upfront about pricing builds trust, encourages repeat buyers, and keeps you compliant with consumer-protection laws. Let’s walk through the key pricing standards every online business should follow.

💰 1. Strike-Through Pricing (Was/Now Pricing)

There’s nothing wrong with showing a discount; as long as it’s genuine.

If you display “WAS $100 – NOW $70,” make sure that product was actually sold at $100 for a reasonable period.
Running “permanent sales” year round is misleading and can breach consumer laws.

✅ Rule of thumb: Only use “was/now” pricing if you can prove the original price and the length of time it was active.

🏷️ 2. RRP (Recommended Retail Price) & MSRP (Manufacturer’s Suggested Retail Price)

A RRP or MSRP tells shoppers what the typical retail price is, giving them context for your discount.

• If you run both an online and a physical store, it’s fine to show that your online price is lower due to reduced overheads.
• But don’t claim unrealistic markdowns (e.g., RRP $150 → NOW $25) unless you can back it up.

💡 Remember: In Australia, suppliers can’t force you to sell at a fixed price. It’s illegal. And you can’t pressure others to do the same. A “recommended” price is exactly that: a recommendation.

💼 3. MAP Pricing (Minimum Advertised Price)

MAP policies are used by manufacturers to maintain a brand’s image and prevent price wars. While MAP is legal in the USA, it’s not permitted in the UK, or the EU. In Australia setting Minimum resale prices is illegal.

If you sell internationally, double check local laws before signing distribution agreements or advertising restrictions.

🧾 4. Include VAT/GST in Displayed Prices

Every country handles taxes differently, but transparency is universal.

In many countries there is a tax added to every sale. In the USA and the UK for example there is VAT (value added tax). In Australia there is GST (Goods services tax).

In most countries you must add the tax to the product price.

In Australia, Australian consumer law requires that if GST is likely to apply to your goods or service, your website should display a GST inclusive price.

There may be instances where you may not be able to include GST/VAT in the listed price of a product displayed on your online store until you can confirm the delivery address, because GST / VAT are not added on international sales.

If you are unsure if GST/VAT will apply, you should advise your customers that additional taxes may apply to the sale. As soon as you know that GST/VAT applies, you should confirm the GST/VAT inclusive price at checkout before the customer proceeds to the payment process.

If you are unsure of your model, you should consult with the Taxation Office or the ACCC (in Australia) to seek clarification. For instance, if you are selling a product in Australia but most of your sales are internationally based, they are GST free. It may be possible that you can advertise a GST exclusive price in the first instance and make it known to your Australian customers that this will be added to their purchase once they have selected Australia as their country of delivery. As long as they know the full amount BEFORE proceeding to pay, you should be ok.

Be clear and upfront about these sorts of charges and ensure that you are operating within the law and that the consumer is not misled or disadvantaged.

🚚 5. Postage Costs

Customers love free shipping, but honesty matters more than gimmicks.

If you can’t absorb shipping costs, provide clear options such as:

• Free / Standard Shipping
• Express Shipping (extra fee)

Offer both where possible. Even if one is free and the other paid, it gives customers choice and control.

Explain the concept of processing times and transit times including what business days mean in shipping.

Finally, don’t just select any delivery company. Ensure you partner up with some of the best delivery companies out there that align with your values and customer expectations.

💳 6. Payment Surcharges

Small surcharges can cause big frustration.

If you must pass on transaction fees (like credit card charges), disclose them before the customer selects a payment method. And never exceed the amount your financial provider charges.

I’ve always preferred to absorb these small costs, it keeps checkout friction free and customers happy.

💦 7. Drip Pricing: Don’t Do It

“Drip pricing” means adding unexpected costs near the end of checkout, like fees, add-ons, or service charges that weren’t shown upfront.

Example:
You advertise airport transfers for $120, but once the customer checks out, they see an automatic $5 for water and $10 for “luggage handling.”
Even if optional, pre-ticked add-ons are deceptive.

✅ Best practice:

• Show all potential charges clearly before checkout.
• Allow users to opt in; never force in.

🧠 8. Psychology of Pricing

Charm pricing ($9.99 instead of $10) or tiered packages can help conversions, but always apply them ethically. Avoid manipulative tactics or fake scarcity.
A clever strategy earns buyers, but honesty keeps them.

Here are some examples of how smart wording influences perception:

🎯 Use $999 over $1000 – it feels smaller and more inviting
🎯 Go with Only 3 Left rather than Buy Now – creates gentle urgency
🎯 Choose Essential in place of Basic – sounds valuable, not cheap
🎯 Try Customized over Standard – feels tailored and personal
🎯 Pick Limited instead of Few – adds exclusivity and importance
🎯 Offer a Try It Risk-Free message rather than Free Trial – builds confidence
🎯 Use Affordable instead of Cheap – keeps value without lowering tone
🎯 Frame it as a Special Offer rather than Discount – makes it feel premium
🎯 Invite with Get Started over Buy – encourages action in a friendly way
🎯 Refer to Delivery rather than Shipping – sounds smoother and service focused

💡 Cranky Boss Tip:
Language shapes perception. Your words can make the difference between “meh” and “must-have.” Just keep it real – clarity first, creativity second.

Final Words

Pricing isn’t just about profit; it’s about perception.
Be fair, be clear, and respect your customers’ intelligence. In return, they’ll reward you with loyalty, word-of-mouth referrals, and repeat sales.

I’ve seen businesses lose thousands in refunds and chargebacks over a few misleading dollars.
Don’t chase a quick buck; build a reputation that pays for years.

📅 Updated October 2025

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📚 Related Reading

• Having an Online Presence
• Selecting and Registering a Domain Name
• Hosting Companies
• Website Builders & Building a Website
• Constructing Your Website Pages
• Online Payment Methods
• 🔹 You’re here: Pricing Standards & Advertising Online
• Disputes and Chargebacks
• Types of Online Fraud
• SEO (Search Engine Optimisation)
• Paid Advertising – Google Ads
• Other Selling Platforms

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