
Why Cost Cutting Sometimes Cuts Corners on Price Integrity ✅
You don’t often hear customers talk about pricing staff. But when pricing goes wrong, they talk loudly—and they talk everywhere. Online, in store, to regulators, to each other. One wrong price tag can do more damage to trust than a faulty product. And yet, in cost-cutting drives, roles that protect price integrity are some of the first to go.
Many businesses today face rising cost pressures—from supply chain inflation to wage increases. The instinct is to cut what doesn’t “sell”. Admin, support, back-office roles, or as they’re often lumped together, “non-revenue” staff.
Sometimes business leaders forget that pricing is revenue. It touches every product, every sale, every margin. So when you cut the people who manage pricing accuracy—often quietly and invisibly—you risk triggering customer overcharges, revenue leakage, and serious brand damage.
That’s not theory. It’s exactly what’s playing out now in the real world.
>Download Now: Free PDF How to Set Up & Integrate a Pricing Team
Kroger’s Wake-Up Call on Price Accuracy and Revenue Management
Consumer Reports recently accused Kroger, one of the largest grocery chains in the US, of overcharging customers across multiple stores. Investigators found at least 150 examples of items scanning at full price despite being advertised or tagged as discounted. The average overcharge? $1.70 per item. Not huge in isolation, but imagine that error repeating across millions of transactions.
What caused it? Expired shelf labels weren’t updated. Why? Store staff said there simply weren’t enough workers. Job cuts had reduced the number of people responsible for changing pricing tags—a task once done daily. Some prices were found to be over 10 days out of date. In a few stores, it was more than 90.
Kroger’s spokesperson pushed back, saying the examples were isolated and didn’t reflect the broader system. But the story caught on. The reputational damage was done.
The People That Protect Price Integrity
Businesses often invest heavily in pricing strategy. Consultants, algorithms, promotions, positioning. But many overlook the final mile: pricing execution.
On the ground, pricing teams:
- Update and check shelf labels
- Monitor promotions and markdown windows
- Enter price changes into POS systems
- Run compliance checks and internal audits
These tasks may not be glamorous, but they’re essential. Without them, prices drift. Promotions misfire. Customers get overcharged—or undercharged. Either way, your margin and your credibility suffer.
What Happens When You Cut the Wrong Roles
Cutting pricing-related roles might save costs on paper. But here’s what often happens in reality:
- Errors go unspotted. No one has time to check if the label matches the till.
- Promotions fail. Sales miss targets because prices weren’t properly updated or communicated.
- Refunds increase. Angry customers demand reimbursements for overcharges.
- Complaints rise. Staff spend more time dealing with issues than selling.
- Trust erodes. Customers feel misled, even if it was accidental.
Internally, teams become reactive. Problems are patched, not prevented. In industries like retail or hospitality, where pricing can change daily, these cracks widen fast.
Price Integrity is Revenue-Critical
The myth that pricing accuracy is a low-level task needs to go. In reality, pricing staff are frontline protectors of:
- Profit margins
- Brand trust
- Legal compliance
- Customer experience
Treating pricing as an afterthought is like having a brilliant marketing campaign but delivering the wrong product. It undermines everything else.
Cost Management Approach Without Undermining Price Integrity
If you’re under pressure to cut costs, there are better ways than gutting pricing support. Here’s how to uphold your price integrity:
1. Cross-Train Staff – Don’t silo pricing. Train floor staff or team leaders to help maintain price integrity. It builds accountability and resilience.
2. Automate, but Don’t Abdicate – Use digital pricing tools or electronic shelf labels, but keep human checks. Automation saves time, but it can’t replace judgment.
3. Audit Regularly – Set up monthly price integrity audits. Small mistakes caught early are easier and cheaper to fix.
4. Listen to Feedback – Encourage employees and customers to report pricing errors. Make it easy. Show them you care and follow up fast.
5. Don’t Cut Roles, Redefine Them – If budgets are tight, look at combining roles or upskilling rather than cutting outright. Pricing can be embedded into operations, not removed from them.
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Don’t Lose the People That Ensure Your Price Integrity
When times are tough, cost-cutting is inevitable. But smart businesses know the difference between a cost and a capability. Pricing is not just a process—it’s a promise to your customer. Break that promise, and you’ll pay far more than wages ever cost you.
So before you cut a pricing coordinator or reduce your store ops team, ask yourself: Can I afford the fallout if prices go wrong? Because in pricing, the quietest workers often protect the loudest customer complaints. And if your pricing isn’t right, nothing else will be.
If you’re feeling the pressure to cut costs but don’t want to risk your price integrity, there’s a better way forward—one that protects both your margins and your customer trust. If this hits close to home, let’s talk. We help businesses find smart, sustainable ways to manage pricing without losing what matters. Reach out anytime. We are here to help you make confident, clear pricing decisions—no matter the pressure.
For a comprehensive view of integrating a high-performing pricing team in your company, Download a complimentary whitepaper on How to Set Up & Integrate a Pricing Team.
Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
If so, please call (+61) 2 9000 1115.
You can also email us at team@taylorwells.com.au if you have any further questions.
Make your pricing world-class!
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