What is everyday low pricing?

Everyday low pricing is a popular tactic among retailers, especially in North America. 

Many big-name businesses, including Walmart and Amazon, have used this pricing model to get where they are today – i.e., taking lots of sales!

And who knows? If it’s worked for them, maybe it’ll work for you, too.

In this article, we look at everyday low pricing and how it can help give your retail pricing strategies a competitive edge.

Everyday low pricing – explained

Everyday low pricing (EDLP) strategies work when companies ensure that their products are priced low over a long period of time.

Often, the original low price point remains even if production costs rise. This means customers are less likely to shop elsewhere because they always get a good deal.

If your business has implemented an everyday low price strategy, avoid running sporadic discounts and/or timed promotions alongside it. You’ll risk harming your brand reputation in a big way!

Everyday low pricing vs. high-low pricing

Across the digital shelf, brands normally employ either everyday low pricing or high-low pricing strategies to help win sales. But what’s the difference between these two approaches?

Put simply:

  • Everyday low pricing – introduces a low price point for products over an extended retail period; these prices don’t change 
  • High-low pricing – uses low prices during seasonal events or promotions, but charges more the rest of the time

Ever since ecommerce trading became big business, retailers have debated which strategy has made them more money: EDLP or high-low pricing. Ultimately, though, it’ll be your call in terms of the pricing model that works best for you.

Pros and cons of everyday low pricing

Everyday low pricing has its advantages, which include:

Reduced demand fluctuations

It stands to reason that during sales promotion periods, product demand will be higher. By introducing an everyday low price point, you can keep your inventory levels consistent and lower the risk of being unable to satisfy customer expectations.

More targeted advertising

Winning at the digital shelf means investing in ecommerce marketing, but ever-changing price points make it difficult to keep shoppers coming back for more. Everyday low pricing allows you to target your advertising efforts around this consistently reduced price point, which will surely appeal to the average cost-conscious consumer.

Employee workload

Introducing an everyday low pricing strategy that’s fixed for a long period of time means staff don’t have to worry about manually marking down items during sales events.

Of course, EDLP has its disadvantages, too, including:

Potentially lower profits

To be a success, everyday low pricing must achieve significant sales volumes. Even if customers don’t buy as many products as you expect, this could seriously impact an already narrow profit margin.

Lack of hype

It’s the sensationalism around sales events that helps attract shoppers, especially during seasonal periods. Consequently, an EDLP strategy may fail to garner the attention it deserves by not being loud enough!

No additional discounts

Not discounting on products may inadvertently cause customers to distrust your everyday low price point, resulting in poor brand compliance.

Who benefits from everyday low pricing?

Everyday low pricing will definitely appeal to shoppers who are tired of there being so many price variations for similar, if not the same, products. And the less time they spend comparing different prices, the more they have left to engage with your wider brand messaging.

By the same token, retailers might enjoy greater sales, and ultimately profits, from the arrangement, providing they hit certain volume targets. EDLP is an ideal strategy for businesses aiming to position themselves more favourably among their customer base, with cost control being a great way to do just that.

Manage your everyday low pricing with Magpie DBX

Here at Magpie DBX, we offer a comprehensive price tracker that has eyes on all your products and those of your competitors 24/7. Results are filterable and searchable, plus you can view price trends over time and receive alerts when prices change – not bad if you need to adjust your pricing quickly!

Then there’s our stock availability monitor; this shows which retailers are offering the best terms for your products. It also tracks your competitors’ inventory levels, so you’re never out of the loop when it comes to overall stock management.

Want help maximising your everyday low pricing across the digital shelf? Contact us today to request a demo!

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Explore more about price tracking

What is penetration pricing?

Everyone has their price, whether they’re a buyer or business owner.

For companies, the right pricing strategy is crucial if you want to succeed online, and penetration pricing could help your brand stand out in an increasingly saturated ecommerce market.

But what is penetration pricing, and how exactly might your brand use it to grow?

In this article, we’ll explain everything you need to know about penetration pricing, including its advantages, potential drawbacks, and why you ought to consider this approach for your business.

MAP pricing vs MSRP: What’s the difference?

As an e-commerce company, you may find yourself struggling if your pricing isn’t well thought through.

After all, success when operating on the digital shelf means you should already be competitively priced and ready to go.

We appreciate it’s sometimes easier said than done, though. You’ll first need to consider different pricing policies and decide which one is best for your business.

In this article, we look at the debate around MSRP vs MAP pricing and provide a clearer picture of what these two pricing models can offer.

Why is it important to monitor competitors?

If you run a business, you will have competitors. 

And just like you, your competitors are working hard to make their business the best.

Some things will work for them, and some things won’t. They may have already solved problems that you’re currently facing, or maybe they’re gearing up for a big product launch. 

But if you’re not keeping a close eye on them, how would you know all this? 

In this article, we break down why it’s important to monitor competitors, including how one of our partners solved a crucial problem by monitoring their competition. 

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