everyday low price

(noun)

Everyday low price ("EDLP") is a pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shop.

Related Terms

  • belief

Examples of everyday low price in the following topics:

  • Everyday Low Pricing

    • Everyday low price is a pricing strategy offering consumers a low price without having to wait for sale price events or comparison shopping.
    • Everyday low price (EDLP) is a pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shopping.
    • At Trader Joe's, its everyday low prices are available to everyone.
    • Its everyday low prices are available to everyone.
    • Translate the meaning of the EDLP (everyday low price) pricing strategy
  • High/Low Pricing

    • High-low pricing is a strategy where most goods offered are priced higher than competitors, but lower prices are offered on other key items.
    • High-low pricing is a method of pricing for an organization where the goods or services offered by the organization are regularly priced higher than competitors.
    • High-low pricing is a type of pricing strategy adopted by companies, usually small and medium sized retail firms.
    • The way competition prevails in the shoe industry is through high-low price.
    • Those firms will follow everyday low price strategy in order to compete in the market.
  • Price Competition

    • The pricing process normally begins with a decision about the company's pricing approach to the market.
    • In general, a business can price itself to match its competition, price higher, or price lower.
    • Historically, one of the worst outcomes that can result from pricing lower than a competitor is a price war.
    • Other companies are reducing rebates and discounts in favor of stable, everyday low prices (ELP).
    • Kmart discovered that it is hard to go upscale when you're known for low prices.
  • Success and Failure: Strategies to Improve Success

    • A retailer that wants to follow Wal-Mart's strategy of low prices needs to expand rapidly.
    • With their strategy of "everyday low prices," Wal-Mart is very successful in the United States and elsewhere.
    • However, due to the extreme competition, Germans are accustomed to the low prices that are offered by numerous discount supermarket chains.
    • For this reason, Wal-Mart's low price strategy did not create sufficient competitive advantage.
    • Good customer service, combined with low prices, could have been a new market niche in Germany.
  • The Importance of Price to Marketers

    • If, however, a firms wants to position itself as a low-cost provider, it will charge low prices.
    • Just as they do with high-end providers, consumers know what to expect when they see low prices.
    • Both a price that is too high and one that is too low can limit growth.
    • If, however, a firm wants to position itself as a low-cost provider, it will charge low prices.
    • Just as they do with high-end providers, consumers know what to expect when they see low prices.
  • Demand-Based Pricing

    • Demand-based pricing, also known as customer-based pricing, is any pricing method that uses consumer demand - based on perceived value - as the central element.
    • These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing.
    • Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
    • Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
    • By definition, long term prices based on value-based pricing are always higher or equal to the prices derived from cost-based pricing.
  • Predatory Pricing

    • Predatory pricing is the practice of selling a product or service at a very low price, intending to drive competitors out of the market.
    • Predatory pricing is the practice of selling a product or service at a very low price, with the intention of driving competitors out of the market, or create barriers to entry for potential new competitors.
    • Economists argue that the competitors (the 'prey') know that the predator cannot sustain low prices forever, so it is essentially a game of chicken.
    • This is known as 'low-cost signalling'.
    • Low oil prices in the 1990's were considered a case of alleged predatory pricing.
  • Nonprice Competition

    • Non-price competition involves firms distinguishing their products from competing products on the basis of attributes other than price.
    • Since price competition can only go so far, firms often engage in non-price competition.
    • It can be contrasted with price competition, which is where a company tries to distinguish its product or service from competing products on the basis of a low price.
    • Firms will engage in non-price competition, in spite of the additional costs involved, because it is usually more profitable than selling for a lower price and avoids the risk of a price war.
    • Its prices are low, but not necessarily the lowest.
  • Price Discrimination

    • Price discrimination also occurs when the same price is charged for goods with different supply costs.
    • Price discrimination's effects on social efficiency are unclear; typically such behavior leads to lower prices for some consumers and higher prices for others.
    • Output can be expanded when price discrimination is very efficient, but output can decline when discrimination is more effective at extracting surplus from high-valued users than expanding sales to low valued users.
    • Price varies according to demand: larger quantities are available at a lower unit price.
    • Construct the concept of price discrimination relative to legal concerns in pricing
  • Other Pricing Strategies

    • One pricing strategy does not fit all, thus adapting various pricing strategies to new scenarios is necessary for a firm to stay viable.
    • Cost-plus pricing is the simplest pricing method.
    • The limit price is often lower than the average cost of production or just low enough to make entering not profitable.
    • Non-price competition means that organizations use strategies other than price to attract customers.
    • Business people prefer to use non-price competition rather than price competition, because it is more difficult to match non-price characteristics.
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