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.

How does it work?

We mark certain products as EDLP, and a merchant will see the EDLP badge next to a product name in the list of products. A merchant has to set a low initial price for a product with the badge. Please note that a merchant cannot mark products as EDLP; it only can be done by the platform.

EDLP is mainly applied to branded or expensive products, as purchase decisions for such items are made after comparison with competitors’ prices.

Please note that the 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.
• The system will not add the EDLP products to the LTO.

Benefits

• 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 to check for EDLP products?

There are two options to check:

1. Go to Products and select the EDLP Products tab. Here you can see all your products marked as EDLP.
2. 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?

Please determine EDLP products prices based on a reasonable sales margin. For example, the average profit margin for electronics is around 5%.

We expect that the EDLP products will always be sold with a target merchant margin. It is therefore not recommended to use a high-low pricing strategy for such products.

Soon, we will add a fixed price range for EDLP products in the Merchant Panel interface.