Pricing

By 1 January 2002, price lists denominated in legacy currencies will need to have been replaced by prices in euro or another currency.

Key issues to consider

	Which currency will you set your prices in?
	When will you change your price lists? If you decide to change them before the end of 2001, you might want to temporarily show prices in both euro and the legacy currency. Changing your prices early may also help to reduce the risk that you will receive payments in the legacy currencies in 2002, when they will not be legal tender.
	Will you have one euro price list or different price lists for different countries? If you use one price list you may want to make clear whether local tax rates will apply and what the delivery costs will be.
	Which currency will be the lead currency from 1 January 2002? If sterling, what does this mean for the equivalent euro price? If attractive price points are an important aspect of your sales and marketing strategy, will you need to establish new ones in euro or match those of your competitors?
	How will you manage the currency exchange rate? You need to decide how you will manage this, for example by regularly updating your price lists. The DTI’s Europlanner provides you with basic guidance on how to deal with exchange rate management but you should speak to your bank/financial adviser for more detailed advice.
	What printed and electronic material will you need to change?
	How long will you need to make the above changes?
	Will having a single currency in the euro area lead to additional price competition in your market as it is easier to compare prices? Directly comparable prices across the euro area could show potential new customers that your products or services offer good value for money.