What is EDLP?
A strategy that keeps retail prices at a (low) level between the regular sale price and the deep discount sale price of the retailer’s competition. Popularized by Sam Walton, WalMart’s founder, as a reaction to everyday low price.
What is HiLo?
A strategy where retailers price above EDLP competitors and promote deeply. The use ofthis strategy has become more intense in recent years.
What is Leader pricing/Loss Leader/Penetration Pricing?
A strategy where the retailer knowingly and intentionally marks a part of the stock at low prices or prices below cost. The intention is to use this low priced product to drive traffic flow and boost sales of other products.
What is Dynamic Pricing?
This strategy adopts highly flexible pricing. Prices are adjusted based on customer profiles, competitors' prices, inventory level, time of the day etc. Used to boost sales, skim margin, attract specific targets, mostly for online retailers.