Factors to consider when implementing everyday low pricing

Best practices in price monitoring 31.10.2023. Reading Time: 5 minutes

Low prices every day seem like every customer’s dream come true. Which customer would say no to lower pricing over the whole year?!

Even if you’re not so into pricing strategies, we’re sure this sounds like a very tempting offer from a customer standpoint. But, the logical question is why retailers and brands would always keep low prices. 

There must be some catch, right?

EDLP meaning

EDLP stands for “Everyday Low Pricing.” It is a pricing strategy used by retailers and businesses to offer consistently low prices on their products or services rather than relying on frequent sales, discounts, or promotions. The goal of an EDLP strategy is to attract customers by providing them with a sense of ongoing value and price stability.

Everyday low pricing contrasts with a high-low pricing strategy, where businesses frequently change prices, run promotions, and offer discounts to attract customers during specific time periods. With EDLP, customers are encouraged to make purchases at any time, as they can expect to find the same low prices consistently.

This strategy is often associated with large retail chains like Walmart, which has been known for its EDLP approach. The idea is to build customer loyalty and trust by offering competitive prices consistently, reducing the need for customers to wait for sales or discounts.

Like any other pricing strategy, everyday low pricing strategy requires serious market analysis and an in-depth understanding of customer behavior. Let’s discuss the pros and cons.

Advantages of EDLP strategy 

Probably the most obvious advantage of everyday low pricing is sales increase. Regardless of their budget, no one wants to miss out on a good deal if there’s an opportunity for it. Thus, customers are expected to buy more. 

However, this increase in sales differs from the one happening during promotions. 

Promotions take place only a couple of times a year, therefore, they create variations in the sales volume. Yet, with EDLP, there’s no abrupt increase, but stability. Demand is almost never going wild which enables retailers to have better demand forecasting. 

Not having to constantly change prices goes hand in hand with another saving – marketing costs are lower. When retailers are offering special promotions, they need to market them heavily and inform their customers about them. This also means promoting only a couple of products that will be offered at a lower price. However, with everyday low pricing, there is no need to divide products into separate categories and market them differently. 

Besides lowering costs, this pricing strategy helps with better time management. Employees will not constantly be busy with changing the product prices both in online and offline stores. 

So, it’s clear that retailers can benefit from this pricing strategy, but what about the customers? 

What benefits does the customer get?

Besides saving, EDLP provides price transparency, making it easier for customers to compare prices and make informed purchasing decisions. They can rely on the fact that the price they see today is likely to be the same tomorrow.

Customers appreciate convenience and predictability, meaning they can shop anytime, without worrying about missing out on deals, and can better plan shopping trips and budgets when knowing what to expect in terms of pricing.

When customers consistently receive good value and fair pricing, it can build trust and loyalty to the retailer or brand that employs an EDLP strategy. Customers are more likely to return and make repeat purchases.

So far it seems like a win-win situation for everyone. There must be some disadvantages to everyday low pricing strategy, right?

Are there any drawbacks?

Lower prices mean lower profit. And, another thing that can lead to lower profit is the fact that lower prices can often be connected with lower quality. Therefore, the price can very much influence the brand image and the customer’s perception. 

That brings us back to the beginning of this article. We said that the crucial factor for implementing everyday low pricing is knowing your customers and the market in general. The fact that you’ll not be changing the prices constantly, doesn’t mean that you won’t change them ever. Moreover, how will you determine what low price would be beneficial for your business?

The answer lies in knowing and understanding your competitors. Both retailers and brands need to be aware of what’s going on in the market and adjust their pricing strategies accordingly. One of the best ways to do it is by using price monitoring tools. If you haven’t considered that option yet, we strongly encourage you to do so and see for yourself the transformation that your business will face. 

Price monitoring tools are one of the best ways to overcome all the obstacles that any pricing strategy can create. 

Factors to consider when implementing EDLP

When implementing everyday low pricing strategy, businesses should consider various factors to ensure its success. Here are some key considerations:

  1. Understand your cost structure and assess whether you can sustain lower prices while maintaining profitability. This might involve streamlining operations, reducing overhead, or negotiating better deals with suppliers to keep costs low.
  2. Analyze your competitors and the pricing strategies they employ. EDLP works best when your customers perceive your prices as consistently lower or at least on par with competitors.
  3. Determine which products or services will be part of your EDLP offering. It may not be feasible or advantageous to apply the everyday low-pricing strategy to all items in your inventory. Focus on popular, high-traffic, or essential items to maximize the impact of the strategy.
  4. Optimize your supply chain to minimize costs and maximize efficiency. Efficient inventory management, transportation, and sourcing practices are essential for maintaining low prices.
  5. Develop a clear and consistent message to communicate your EDLP strategy to customers. Emphasize the value and reliability of your pricing, and make sure customers are aware of your commitment to everyday low prices.
  6. Continuously monitor the market and your competitors to ensure that your prices remain competitive and that your EDLP promise is upheld.
  7. EDLP is not just about the actual prices but also how customers perceive your pricing. Make sure customers trust your pricing strategy and feel that they are consistently getting good value.
  8. Train your employees to understand and support the everyday low-pricing strategy. They should be knowledgeable about pricing and be able to assist customers who may have questions or concerns.
  9. While EDLP can build loyalty through consistency, it may not be as effective in driving impulse purchases as high-low pricing strategies.
  10. Utilize data and analytics to understand customer behavior, track the performance of your pricing strategy, and make adjustments as needed. Customer feedback and purchasing patterns can provide valuable insights.
  11. Ensure that your pricing practices comply with all relevant laws and regulations, especially regarding pricing transparency and fair business practices.
  12. EDLP emphasizes stable pricing, but there may be times when you need to make adjustments due to factors like inflation or changes in your cost structure. Ensure that your strategy allows for some flexibility while maintaining the core principles of everyday low pricing.

EDLP | Good practice

As we said, big retail chains are usually the ones that are using everyday low pricing. Let’s learn from good examples. 

Walmart has been a pioneer in using EDLP. Known for offering consistent and competitive pricing on a wide range of products, from groceries to electronics. They avoid frequent price fluctuations and instead maintain stable, low prices on everyday items. This retailer has a policy of matching competitors’ prices if a customer finds an identical product at a lower price at another retailer, ensuring that customers get the best deal. Their commitment to EDLP is often reinforced through its advertising and marketing, emphasizing the idea that customers can find low prices every day at their stores.

Aldi is a global supermarket chain that is well-known for its EDLP approach. They offer a limited selection of private-label products, focusing on affordability and value. Aldi keeps its operating costs low and passes those savings on to customers by offering consistently low prices on everyday grocery items. They do not have frequent sales or promotions but rather aim to provide customers with budget-friendly options on a day-to-day basis. Their reputation has been built around offering quality products at lower prices, following the EDLP model.

Assure your customers get the best deal every day

It seems that customers have never had more choices. The choice to choose which products they want, where and from whom to buy them, but also at what price. Retailers who opt for the EDLP strategy are choosing a business model that connects them with customers on multiple levels. It creates trust and a sense of stability. 


Ana Popovic
Ana Popovic is a Digital Marketing Specialist at Price2Spy. She's a sociologist who found her place in the eCommerce world. As such, her love for writing has led her to discover the beauty of content marketing and given her the opportunity to inform people about eCommerce and pricing topics.