Sales Incentives in Serbia: a Passion That Plays Within the Boundaries of Trust
Newsletter 146
Given the post-holiday and seasonal discounts but also given the continued importance that merchants have in increasing their sales and being recognised in the market, the following is an overview of the sales incentives provided for by the Law on Trade and the conditions that merchants should comply with.
Merchants should benefit from this “game”, using it to gain market recognition and maintain their reputation with a minimum risk of sanctions. However, a small number of them are not aware of the fact that there are rules and conditions that must be observed when organising sales incentives, unless they want to be sanctioned with high fines (approx. from EUR 4,000 to 17,000) and measures such as prohibition of certain activities.
In fact, sales incentives are an offer of goods or services on favourable terms compared to a regular offer. The types of favourable terms are, for example: Price reduction, special terms of sale or delivery, promise of reward on purchase, accompanying gifts, loyalty programmes and others.
For each type of sales incentive, there must be a prominent offer (decision) in the facility containing the following information:
- the type of incentive (sale at a reduced price, special conditions of sale, etc.)
- a precise and clear definition of the goods to which it refers
- the period of validity of the incentive, indicating the start and end dates
- in the case of a sale with a “while stocks last” sign
- any special conditions attached to the exercise of the right to an incentive.
Sales at a reduced price are specifically designed to ensure legal certainty for consumers. In fact, there are three different forms of sales at a reduced price, depending on the conditions under which they can be carried out. Sale at a reduced price is:
- Sell off – a sale at a lower price than the previous price and can only be carried out in the event of the merchant ceasing to trade, ceasing to trade in certain premises or a large-scale sale of certain goods, with additional restrictions
- Seasonal discount – can take place up to twice a year and can last up to 60 days, starting between 25 December and 10 January and 1 July and 15 July
- Promotional sale – sale of goods or services at a lower price than the regular price and lasts a maximum of 31 days.
