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.
  • Price Floors

    • A binding price floor is a price control that limits how low a price can be charged for a product or service.
    • A price floor is a price control that limits how low a price can be charged for a product or service.
    • For a price floor to be effective, it must be greater than the free-market equilibrium price.
    • An example of a price floor is the federal minimum wage.
    • If a price floor is set above the equilibrium price, consumers will demand less and producers will supply more.
  • 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.
  • Competition-Based Pricing

    • Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
    • For instance, if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at a higher or lower price, all depending on what the company wants to achieve.
    • One advantage of competitive-based pricing is that it avoids price competition that can damage the company.
    • The price may also barely cover production costs, resulting in low profits.
    • Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.
  • 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.
  • Information Costs and Bond Prices

    • Information costs influence the bond prices and interest rates.
    • We include these costs in the bond's market price and interest rate, and they raise the cost of borrowing.
    • We can use the demand and supply analysis to create two markets for the high and low information- cost bond markets.
    • Thus, investors are attracted to the low-information cost bonds, boosting their demand for low information cost bonds, increasing the market price and decreasing market interest rate.
    • Therefore, low-information-cost bonds pay a lower interest rate.
  • 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.
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