EDLP or everyday low price is a pricing strategy where either a retailer or a product is limited to no promotions and uses their trade funds to offer a low price throughout the year. EDLP is most often associated with retailers like Walmart, but is common across many retailers and is optimal for a product with high everyday price elasticity and low promoted elasticity.
High-low
A pricing and promotion strategy where an item has a relatively high everyday price but deep or frequent promotions. High-low is the optimal strategy for items with low everyday price elasticity but high promoted responsiveness.
High-shallow
A pricing and promotion strategy where an item has a relatively high everyday price and infrequent and shallow promotions. Items that benefit from a high-shallow strategy are low elasticity items. Moving to a high-shallow strategy can be margin accretive for the right item with minimal negative volume impacts.
Invest
A pricing and promotion recommendation to invest additional trade funds in a lower everyday and promoted price due to high consumer price elasticity. Invest items are highly responsive to price and an investment in price will drive increased retailer dollar sales.
Non-promo price
The average price per unit charged for a given product at the everyday shelf or “regular” price. This is the average price charged for a product in the absence of promotion.
Non-promo value
The amount of volume sold at the everyday shelf price without the presence of either a promotion discount or promotion support. This can be a good measure of the demand for a product excluding demand driven by short term price reductions.