This policy governs how prices and markdowns are set, approved, and communicated across all RetailFlow channels. It applies to every store, the online store, and any system (automated or manual) that proposes or applies a price change. Any pricing automation must operate within this policy.
1. Who may change prices
| Role | Authority |
|---|---|
| Category buyer | Propose price & markdown within approved band |
| Merchandise manager | Approve changes up to 15% off ticket |
| COO (S. Thompson) | Approve changes 15–30% off ticket |
| CFO (D. Chen) | Approve clearance >30% and any below-cost sale |
Store staff may not alter system prices. No individual or system may set a price below landed cost without CFO sign-off.
2. Approval thresholds
- Any single change moving a price more than 20% in one step requires merchandise-manager approval before it goes live.
- Changes to "hero" / brand-signal lines (top 200 SKUs) require Brand sign-off (GM Customer Experience).
- Price increases on essential homewares lines are capped at +10% per quarter to avoid perceived gouging.
3. Promotional calendar
RetailFlow runs a fixed annual promotional calendar agreed each November. Pricing must align to planned events; off-calendar discounting requires COO approval. Key locked windows:
- Mid-Season Sale (May, October)
- End-of-Season Clearance (Jan, July)
- Click Frenzy / Black Friday (November)
- Boxing Day (December)
4. Brand & price-perception rules
Price-perception constraint: RetailFlow positions as accessible-premium, not discount. Prices must remain stable and predictable on visible everyday lines. Rapid, frequent, or visible price swings on the same item, particularly increases, are prohibited because they damage trust and invite "gouging" coverage.
- No more than one price change per visible SKU per 7-day period without COO approval.
- Online and in-store ticket prices for the same item must not diverge by more than 5% at any time.
- No price increase on an item within 14 days of advertising it at a promotional price.
Automation note: any automated pricing system must enforce these rules as hard guardrails. A system that can change prices freely, frequently, or below cost without these limits is non-compliant and must not be deployed to production.
Sarah Thompson, Chief Operating Officer