Everyday low price (EDLP) is a pricing strategy for providing our customers with products at a low price without discount events or promotions. The EDLP strategy is aimed at maximizing sales by always offering competitive prices and therefore expecting high sales volumes.
- It gets more impressions. The EDLP products will appear in a special section on the Joom website and app.
- It increases your revenue. By offering a lower price, you distinguish your products from related versions sold by competitors. Moreover, when customers trust a store that offers agreeable prices, they are more likely to pick other products from the assortment.
- It is efficient in the long term. The EDLP allows merchants to achieve a stable and predictable income as the EDLP products have constant demand regardless of sales promotions.
- The EDLP strategy saves time and energy. Merchants don’t need to put in the effort needed to participate in promotion events.
How does it work?
Joom includes certain product categories in the EDLP pricing strategy and labels products from these categories as the “EDLP”. A merchant sets a low initial price for a product with the badge. Note that a merchant cannot mark products as EDLP; it can only be done by the platform.
EDLP products cannot participate in any promotions. When you add products to the platform promotions or the merchant discount, the EDLP products will not be displayed in the list of available products. If you try to add such products using a product ID, the system will give an error. Also, the system will not add the EDLP products to the LTO.
If Joom adds new product categories to EDLP, the process will look like this:
Target products for EDLP
EDLP is mainly applied to branded or expensive products, as purchase decisions for such items are made after comparison with competitors’ prices.
Refer to the list of product categories that are included in the EDLP pricing strategy. The list can be completed or reviewed.
Robotic Vacuum Cleaners
Automatic Window Cleaners
Coffee Makers & Coffee Machines
Virtual Reality Glasses
DVD & VCD Players
Single Board Computers
Slimming Electric Massagers
Microwave Ovens & Roasters
Cotton Candy Making Machine
Electric Meat Grinders
Electric Stoves, Ovens & Fryers
Sport & Action Video cameras
Home Theater & Office Projector
Printers & MFP
How to check for EDLP products?
There are two options to check:
- Go to Products and select the EDLP Products tab. Here you can see all your products marked as EDLP. At the top of the page, you can find statistics on achieving target prices for EDLP products. Hover your mouse over the question mark to read the description of each statistic.
- On the Products page, you can also find EDLP products from the list of all products using the EDLP filter. When you open product information, you can see the same badge above a product name.
How to determine the selling price?
You can determine an EDLP product’s price within the price range indicated in the Market Price or Favourable Price columns. This will give you extra rewards.
A market price is the average competitor price for the same products across other platforms.
If your product’s price meets the market price, it is considered competitive. You will get the Competitive badge in the Above Market Price column. It means that your product will get increased promotional traffic.
A favorable price is the price at which a product will be the cheapest option available among various platforms.
If your product’s price meets the favourable price, it is considered the best option. So, you will get the Favourable badge in the Above Favorable Price column. It means your product will get more advertising traffic.