Discounted pricing is an effective way for dealers to advertise price reductions on vehicles, making them more visible in search results and on listing details. Discounted pricing is available to all dealers using our Turbo or Torque packages.
It’s really important that dealers are responsible when using discounted pricing. In the sections below, we’ve outlined some key things to keep in mind.
If you’re using discounted pricing you should:
- Ensure you’re not being misleading or deceptive with pricing – the price should be accurate and unambiguous.
- Only use discount pricing for amounts that reflect real value for consumers.
- Make sure the original price reflects the “normal price”, taking into account your own sales while on Trade Me
- Accurately advertise the reduced price against any previous sale prices.
- Make sure the discounted price runs for a limited time only. The longer a discounted price runs the greater the chance the sale price is likely to become the “normal price”, and continuing to show a reduced price will likely be misleading in terms of the Fair Trading Act.
Information for sellers
We've got some ground rules for offering was/now pricing on Trade Me. These are in place to maintain a fair and trusted marketplace for all Trade Me members. The guiding principle is that sellers need to ensure consumers aren't misled or deceived. The Fair Trading Act covers all aspects of the promotion and sale of goods and services, and this includes pricing. Any representations a dealer makes about price must be clear, accurate and unambiguous.
Below we've compiled a list of handy tips to keep in mind when discounting items, and to help you make sure you're fulfilling your obligations under the Fair Trading Act.
Minimum % off
- Discounted prices are only going to convert to sales if they are compelling to buyers.
- The stronger your offer, the more attractive your listing will look.
- We reckon buyers would respond best to reductions of 10% or more of “normal” selling price (as a minimum reductions should be greater than 5%).
- When offering discounts on Trade Me, you'll need to work within what's fair by the law, and comply with these discounted pricing guidelines.
- The golden rule, is any representations a business makes about price must be clear, accurate and unambiguous – this is really important.
- Don't inflate your 'usual' price to exaggerate the discounts available.
- You must be able to substantiate any representation you make about price (such as ‘$ off’) at the time you make it.
Guidelines for using Discounted pricing
- Ensure that the ‘was’ price reflects your normal selling price on Trade Me. Discounts should not be taken from RRP if that is not what you have been selling the goods for previously.
- Was/now pricing should be clear, accurate, and unambiguous. Ensure there’s no room for misinterpretation or misleading your buyers.
- Discounts should run for a limited time only, so make sure to monitor the duration of your was/now pricing offer. If your discounts remain in place for too long, they will become the ‘normal’ price for the goods.
- You can only offer consecutive discounts on the same item if you are further discounting the price. The previous "now" or sale price must be used as the new "was" or original price. You can't regularly offer the same discount on an item.
- New accounts wishing to use pricing discounting should discuss this with their account manger.
You should make sure any conditions that apply to special offers are clearly disclosed upfront and any smaller text doesn't substantially change the offer.
If we find that your sale offers change considerably from what was initially promised (i.e. stock levels drop, more conditions/exclusions apply), we will stop you from being able to offer was/now pricing.
Here are a couple of relevant links that you should be familiar with:
Which vehicles can I discount?
You can add a sale price to any classified vehicle listing (provided you adhere to the conditions above).
How long can I list an item as on sale?
The Commerce Commission defines a sale as an opportunity to buy goods at reduced prices for a limited time.
Also, remember that offering the same discount on consecutive listings for the same vehicle is misleading.
What happens if I list an item as 'on sale' for longer than reasonable?
Under the Fair Trading Act, the Commerce Commission can prosecute dealers for the misrepresentation of pricing. Check out their guidelines. We'll also be keeping an eye on things to ensure discounted pricing is used appropriately. If you don’t use discount pricing responsibly, we may remove your access to it.
Check out our policy for promoting discounted vehicles on Trade Me.