Pricing Strategies 
  Price  is  one  of  the  most  important  elements  for  both 
   buyers  and  sellers  and  maintaining  an  appropriate 
   balance  between  the  two  is  a  crucial  element  of 
   retailing. 
  Customers are looking for greater value for their money 
   in what they purchase.  Arriving at the right price for a 
   product or service is one of the most difficult tasks of 
   marketing.  Price  is  the  value  placed  on  what  is 
   exchanged.  It  is  the  point  at  which  the  exchange 
   between buyer and seller takes place, where supply 
   and demand are equal. 
    Elements of Retail Price
  Fixed Costs
  Variable Costs
  The  price  of  a  product  is  the  total  of  the  fixed  and 
   variable  expenses  to  manufacturer  or  offers  your 
   product  or  service.  Price  on  the  other  hand  is  the 
   selling price per unit customers pay for your product 
   or service. For consumers, the price of a product is the 
   most obvious indicator of cost – hence, the need to get 
   product pricing right. The profit to be earned from the 
   merchandise must be planned before fixing the retail 
   price. 
       Pricing Strategies 
  EDLP (Every Day Low Price)
  Many  retailers  have  adopted  an  every  day  low  price 
   strategy, which stresses continuity of retail prices at a 
   level somewhere between the maximum printed price 
   and the cost of the product. The term ‘everyday low 
   price’  is  therefore  somewhat of a misnomer, as low 
   does not necessarily mean the lowest. 
            EDLP
 The importance of pricing cannot be more aptly proved 
  anywhere in the world than by the fact that some of the 
  larges  and  most  successful  retail  chains  around  the 
  world including Wal-Mart, Kmart,Home Depot, Office 
  Depot,Toys  “R”  Us,  Target  and  Tesco  all  adopt  a 
  deliberate policy of EDLP
 Having established  their  goodwill  over  many  years,  the 
  retailers who have adpoted EDLP have been able to win 
  over their customers by offering them good quality and 
  durable  products  at  reasonable  prices  throughout  the 
  year. 
          Benefits of EDLP
  Attracts customers to the store
  Reduced Advertising
  Improved customer service
  Better inventory management 
  Increased profit margins