March 14, 2013

Exchange offers pricing parity

Whether servicemembers are here at Davis-Monthan, on exercise or deployed, they can expect to find the same or very similar prices at Army & Air Force Exchange Service facilities worldwide.

The practice is known as pricing parity and the prices for products available around the world are established centrally.

“While price differentiations can occur with items purchased locally overseas, per Department of Defense policy, the Exchange doesn’t increase prices in order to cover shipping or other higher operational costs,” said the Davis-Monthan Exchange General Manager Cathy J. Ely. “We work to bring Airmen and their families ‘a taste of home’ no matter where in the world they go.”

Despite the Exchange’s efforts to price consistently, a few exceptions can occur.

“Shoppers may see some price differences between locations in the continental United States and overseas for categories such as gasoline, alcohol and tobacco,” said Ely. “These prices are set based on Department of Energy benchmarks, or local surveys, according to DoD directives.”

Additionally, prices for some convenience and frequently purchased items may be lower at different locations based on local promotions or price surveys. To ensure prices on these same items overseas are consistent with those servicemembers would expect to see at home, overseas prices are set at the average surveyed CONUS price.

As a joint non-appropriated fund instrumentality of the Department of Defense, the Exchange’s earnings support military quality-of-life programs. This structure helps ensure the Exchange’s overriding concern is supporting servicemembers wherever they are called to serve, as a partner in both readiness and retention.

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Photo by Tech Sgt. Brian E. Christiansen, NC Air National Guard.

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